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Nation expects economic stimulus

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Minister Chinamasa

Minister Chinamasa

Business Reporters—
FINANCE and Economic Development Minister Patrick Chinamasa is expected to present the 2017 National Budget this afternoon largely oriented towards a cocktail of measures to boost production and encourage foreign direct investment. The budget comes two days after President Mugabe delivered his State of the Nation Address, focusing on initiatives to stimulate production in line with Zim-Asset and the 10-Point Plan for economic growth.

With little change expected regarding money allocated to traditional expenditure areas due to tight fiscal space, giving incentives to boost production and investment is critical in driving growth, creating jobs and improving competitiveness.

In the same vein, Minister Chinamasa is expected to provide clarity on the pronouncement he made in the 2016 Budget Review Statement on the restructuring of the civil service. Zimbabweans also expect to hear the action Government will take against abuse of bond notes, amid reports of pricing discrepancies between the greenback and bond notes.

Analysts and Zimbabweans in general said policies that strengthen the country’s competition landscape would help transform the economy into a vibrant export-driven economy. Already, Government has put in place policy initiatives to address some of the issues relating to the supply side of the economy such as improving costs of doing business.

About a month ago, President Mugabe signed into law, the Special Economic Zones Bill, a development that is expected to attract foreign direct investment and create thousands of jobs. The Reserve Bank of Zimbabwe has also put in place production enhancement measures to support selected economic sectors of the economy including mining and agriculture.

As such, Minister Chinamasa is expected to come up with complementary policies to reinforce such initiatives. It is also expected that the budget will propose measures to support and increase exports and inflows of foreign currency to ease liquidity problems.

“Our biggest challenge is low production and low productivity, which has seen us failing to compete with other economies,” economist Dr Gift Mugano said in an interview. “We, therefore, expect the budget to be production focused. We need to boost productivity along the entire value chain to enhance our export capacity and reduce imports.”

Policy measures, which the minister is expected to take into consideration include promotion of value chain development and financing through use of tax incentives. For instance, corporate tax for companies participating on value chain finance should be reduced.

Zimbabwe National Chamber of Commerce chief executive Mr Takunda Mugaga said the budget should promote access to various resources that promote production.

“Tax authorities are also creating hell for local businesses and maybe the Minister should look at that as well especially the penalty tax is too high at 100 percent,” he said.

Mr Mugaga added the 2017 National Budget should also address the investment climate and make it conducive for foreign investors. The first step, he said, should be holding campaigns in the diaspora to help change the prevailing negative perception that emanated from bad publicity the country was subjected to by western media.

“People want to come to Zimbabwe to invest, but they have very negative perceptions of the country. The minister should allocate funds for massive campaigns outside the country to change that view,” he said. Mr Mugaga said the minister should monitor the civil service, without necessarily downsizing it, but restructure some posts to avoid duplication of roles to avoid an unsustainable expenditure,” he said.

Confederation of Zimbabwe industries president Mr Busisa Moyo cited liquidity constraints and low Nostro account balances as key impediments to industry competitiveness. These, he said need to be addressed to increase local industry production.

“The bond notes are still not sufficient, and these issues need to be managed. We want a comprehensive plan for economic revival. Fiscal management is a key factor that should be looked at, that is revenue and expenditure in both private and public sectors.”

With regards to the mining sector, the biggest problem is multiplicity of taxes. Analysts said the budget should focus on raising productivity and competitiveness of the sector.

They said one way to reduce the tax burden is to make royalties tax deductible for investing companies. VAT on imported equipment has been one of the constraining factors on the sector.

The rationale behind this measure is that it will increase mineral production, employment, tax collection, improve capital investment in mines and downstream benefits. Miners who were surveyed for the 2016 State of Zimbabwe’s Mining Industry Report said the non-deductibility of royalty as a tax expense was increasing their costs of production.

One way the budget is expected to stimulate savings is through removing taxes on fixed or long term deposits and enforcement of plastic money in transactions for all Government agencies.

This will go a long way in improving liquidity inflows, attracting bank deposits from the public, reducing transaction costs, bank transaction costs and formalising transactions. Such a scenario will provide funds for investment and improvements in other sectors of the economy.

On the tourism industry, analysts said there was need to strike a balance between revenue collection and industry viability. In this regard, based on international experience and recommendations of a study of impact of taxation on industry viability done by the Zimbabwe Economic Policy Analysis and Research Unit, the Minister should gradually reduce VAT. This would recognise its vulnerability to competition while giving them time to play a role in contribution to government revenue.


9 500t fertiliser boost for Zim

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Dr Made

Dr Made

Elita Chikwati Agriculture Reporter—
CHINA has handed over 9 500 tonnes of urea fertiliser to Zimbabwe amid indications that the Asian economic giant intends to unveil a $4 billion package for the agricultural sector. Chinese Ambassador to Zimbabwe Mr Huang Ping handed over the fertiliser to Agriculture, Mechanisation and Irrigation Development Minister Dr Joseph Made on behalf of his Government.

Read more:

The fertiliser will be distributed to farmers under the Presidential Inputs Support Scheme.

“Chinese institutions are considering a $5 billion project of which $4 billion will be for the agriculture sector, while $1 billion will go towards housing. We are also strengthening irrigation and mechanisation projects and would want to promote production of goods that have a ready market in China and locally,” Dr Made said.

Ambassador Huang confirmed discussions on the funding were underway. “We are still discussing and we do not want to shout about it,” he said. The fertiliser donated to Zimbabwe yesterday at the Grain Marketing Board’s Aspindale Depot in Harare, will capacitate farmers to boost production and recover from the negative effects of the 2015-16 El-Nino-induced drought.

The drought resulted in poor yields, hence the current food deficit. “I am grateful to the Government of the People’s Republic of China for their good gesture. The fertiliser will be put to good use under the Presidential Inputs Support Scheme,” said Dr Made.

“This is expected to go a long way towards ensuring the success of the 2016-17 agricultural season through increased agricultural production and productivity.” Dr Made thanked the Chinese for supporting Government programmes in the agriculture sector.

These include the Agricultural Technology Demonstration Centre, secondment of Chinese agriculture experts, technical assistance in capacity building programmes in China and joint venture farming and mega projects currently under consideration.

“I extend an invitation to the Chinese Government to consider partnering Zimbabwe in localising fertiliser production,” Dr Made said. Ambassador Huang said the donation was a reflection of the strong ties between China and Zimbabwe.

He said China and Zimbabwe supported each other economically and politically even on international fora. Zimbabwe received 27 500 tonnes of rice from China in September to cushion people from drought.

“We also have undertaken resuscitation of boreholes and irrigation projects. China invested $14 million towards the construction of the Gwebi Technology Demonstration Centre and we have agricultural experts working in different departments. Our friendship and relationship is not only limited to agriculture but also extends to politics,” said Mr Huang.

“President Mugabe visited China and Chinese President Xi Jinping also visited Zimbabwe. These exchange visits lifted the relationship to another height,” he said. The Chinese will construct the new parliament building which is now at the design tendering.

China also assisted in the construction of the Victoria Falls Airport and is working on the Kariba South hydropower extension project expected to inject 150 MW into the national grid next year. “We hope more people will continue to benefit from the co-operation of the two nations,” he said.

Acting Minister of Foreign Affairs Dr Sydney Sekeramayi said the Chinese gesture was welcome and that it came timely when the season had just begun.

“The fertiliser will enhance our preparedness for the 2016/17 season. Last year the drought constrained us to produce enough food. China has capacitated us to ensure we are able to produce food and regain our status as the bread-basket of Africa,” said Dr Sekeramayi.

“The Meteorological Services Department has focasted normal to above normal rains, which are ideal for a bumper harvest and the fertiliser will assist us. I am grateful to Dr Made for his efforts to engage China and secure fertiliser for our farmers. We are thankful to the ambassador for the continued support,” he said.

Zimbabwe and China are all weather friends from the days of the liberation struggle.

Arrest Moyo, PG orders Chihuri

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Professor Jonathan Moyo

Professor Jonathan Moyo

Daniel Nemukuyu Senior Court Reporter—
ACTING Prosecutor-General Advocate Ray Goba has directed Commissioner-General of Police Augustine Chihuri to urgently finalise the necessary paperwork and take Higher and Tertiary Education Minister Professor Jonathan Moyo to court to answer to fraud, corruption, money laundering and obstructing the course of justice charges. Prof Moyo, his deputy Godfrey Gandawa and Zimbabwe Manpower Development Fund (Zimdef) finance director Nicholas Mapute stand accused of abusing nearly $500 000 belonging to (Zimdef).

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Gandawa and Mapute have since been placed on remand at the Harare Magistrates’ Courts, but Prof Moyo filed an application at the Constitutional Court challenging the constitutionality of his arrest.

Home Affairs Minister Dr Ignatius Chombo yesterday said he was not aware of any correspondence between the Acting PG and Comm-Gen Chihuri on Minister Moyo’s arrest, but The Herald has it on good record that the two communicated.

Responding to questions by Norton National Assembly yesterday, Minister Chombo denied knowledge of any correspondence in which Adv Goba directed Comm-Gen Chihuri to take action against Prof Moyo. However, on November 1 2016, the Acting PG wrote to Comm-Gen Chihuri indicating that there was a strong case against Prof Moyo and directed the police boss to finalise the criminal case.

The letter was attached to Adv Goba’s bunch of papers opposing Minister Moyo’s pending Constitutional Court challenge against his arrest.

“Accordingly, acting under the powers vested in me under Section 259 (11) of the Constitution of Zimbabwe, I hereby direct you, Dr Augustine Chihuri, Commissioner General of the Zimbabwe Republic Police to complete the usual criminal procedures stated above, including but not limited to recording warned and cautioned statements from each and all the alleged perpetrators mentioned herein for each and all the alleged charges jointly as they acted in concert and in common purpose to defraud, steal, launder the proceeds and corruptly to feather their own nests,” said Adv Goba.

The Acting PG said Minister Moyo should also be charged with defeating the course of justice. “In regard Jonathan Moyo, a further charge of obstruction and defeating the course of justice by virtue of his conduct which is tantamount to compounding the crimes alleged, should be separately added.

“His public conduct and utterances are ample testimony thereof,” he said. Adv Goba urged Commissioner Gen Chihuri to expeditiously work on the matter because it was of public importance.

“In accordance with the provisions of Section 259(11) aforesaid, you are required to comply with my directive and to report to me what you will have done thereupon. “As the matter is of extreme public interest, I direct that you act without delay and in any event within 48 hours of service of this directive on you and in due course submit the police crime docket for finalisation,” reads part of the letter.

Adv Goba, in the same letter, indicated that his office had carefully perused the docket and concluded that Minister Moyo and his subordinates had committed the offence.

“We have thoroughly perused the proceedings submitted to us and come to the inescapable conclusion based on available evidence that all the alleged perpetrators did commit the alleged crimes on diverse occasions over a period.

“The available evidence is of such strength that it can be said that it discloses a threshold far above the ordinary yardstick of reasonable suspicion,” he said. Adv Goba said the alleged crimes were of a very grievous nature and were premeditated.

“Although ordinarily, motive is irrelevant in criminal matters, it is clear that all the alleged perpetrators engaged in a premeditated criminal enterprise for their own personal benefit albeit financial or political.

“They did not have any right to act in the matter they did,” said Adv Goba.

However, in a bid to discredit the Acting PG, Minister Moyo filed an answering affidavit in his Constitutional Court challenge indicating that Adv Goba had a pervious criminal conviction.

“The depondent ’s handling of this matter and his tainted past in Namibia seriously puts into issue his knowledge and experience in handling such matters and in particular, the present matter,” he said.

Minister Moyo attached a judgment by the High Court of Namibia that narrates how Mr Goba was convicted of attempting to obstruct the course of justice in that foreign country.

“In this regard, it may assist the court to have a fuller appreciation of his qualifications and experience by having regard to a decision of the High Court in Namibia in case Nomber A118/2011 which touches on the fourth respondent’s conduct in a similar office in this Southern African nation,” reads the affidavit.

Minister Moyo quoted a Namibian judge in that particular matter as saying:

“Unfortunately, for the applicant, he was convicted on a charge of attempting to obstruct or defeat the course of justice. On Appeal, this conviction was confirmed by the High Court on June 29 2004. An application for leave to appeal to the Supreme Court was also refused.

“In various subsequent applications, for visas, the applicant sought to downplay the offence as a traffic offence, or failed to furnish details of the offence as he was required to do.” Minister Moyo insisted that he was innocent and that Adv Goba was simply being influenced by media reports.

“The charges against me are false and I denied them vehemently with evidence when I was finally interviewed by ZACC.

“The deponent (of the opposing affidavit) confesses to reading press articles which appear in his own words to have swayed him into forming an opinion of me. He does not, as is required of a professional occupying a fundamental constitutional office, treat such reports as unsubstantiated news items and only deal with facts and evidence as I understand all lawyers are required to,” reads Minister Moyo’s answering affidavit.

National First Division on the cards

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ONE YEAR AGO . . . Harare businessman Philip Chiyangwa (left) is led into the VVIP Suite at Rufaro by CAPS United fan Raymond “Mawaya” Kapondoro in November last year, just days before he won the ZIFA presidential elections. — (Picture by Kuda Hunda)

ONE YEAR AGO . . . Harare businessman Philip Chiyangwa (left) is led into the VVIP Suite at Rufaro by CAPS United fan Raymond “Mawaya” Kapondoro in November last year, just days before he won the ZIFA presidential elections. — (Picture by Kuda Hunda)

Eddie Chikamhi Senior Sports Reporter
ZIFA president Philip Chiyangwa yesterday said the formation of the National First Division next year will resolve the dilemma in the relegation and promotion processes. The National First Division set up is provided for in the constitution, but could not be implemented over the years because of lack of resources and coordination. But, addressing journalists yesterday on the celebration of his first anniversary in office, Chiyangwa yesterday said the formation of the second-tier will be the panacea to the challenges bedevilling the football fraternity.

Watch video here…………

ZIFA and their biggest affiliate, the Premiers Soccer League, are currently on each other’s throats over the relegation and promotion procedure for next season.

The Harare businessman told the media that the football authorities find themselves in the quandary because the leadership has for a long time ignored the provision of the constitution which states that there should be a national second-tier league which feeds into the Premiership.

Chiyangwa, whose two-year term expires in 2017, said it will be one of his priorities to see that the proposed league is up and running next season. “The champions have to be promoted to the Premier League from that First Division. And then there has to be Second Division in line with promoting football if there are enough teams and a third division as well.

“The constitution provides for four posts for the national league that have never been filled. Why I would want the First Division league to be there is because right now you can see the conversations that we are currently engaged in; it will not have been necessary because that league would have produced the champions known to everybody who should be promoted.

“Right now it’s appearing like it’s by negotiation for a team to be promoted. It’s not supposed to be like that. When the First Division league is there, it does its own play-offs when necessary. They knock each other out and two teams come up to the Premiership.

“What I am saying is that we don’t want a negotiated thing like what is happening. Whenever you reach such a position it means you must fix yourselves, ZIFA must fix the problem.

“It must never become a negotiated settlement. It must be done as the constitution says. The constitution provides for that,” said Chiyangwa. He said the National First Division was expected to run along the same lines as the PSL. Chiyangwa said the four regional leagues will provide the teams that should participate in the national league.

The ZIFA president is expected to articulate his position in parliament today after the association and PSL were summoned to explain the state of the game to the Portfolio Committee on Education, Sport, Arts and Culture chaired by Matobo North Member of Parliament Never Kanye.

The football association, however, have indicated they may not be able to attend the indaba as they are currently seized with the COSAFA Under-20 Championships which begun in South Africa yesterday. Chiyangwa said an amicable solution to the relegation/promotion puzzle would be reached.

Chidhakwa throws Gudyanga under the bus

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Minister Chidhakwa

Minister Chidhakwa

Abigail Mawonde Herald Correspondent
MINES and Mining Development Minister Walter Chidhakwa yesterday said he was in the dark why Pedstock Investments was paid $1,3 million by the Minerals Marketing Corporation of Zimbabwe, presumably for the services the agricultural company had provided to the Zimbabwe Republic Police. The Herald broke the story mid this year. MMCZ paid Pedstock acting on a directive from the Mines and Mining Development Secretary Professor Francis Gudyanga. Coincidentally, Pedstock Investments supplied and installed state-of- the-art irrigation equipment worth thousands of dollars at Prof Gudyanga’s farm near Rusape.

Minister Chidhakwa professed ignorance over the whole transaction when he appeared before a Parliamentary Portfolio Committee on Mines and Energy chaired by Masvingo Urban legislator Dr Daniel Shumba.

“Pedstock, I think it is a company used by the police. To tell you the truth, I was shocked when I saw an article in the newspaper to say we have paid Pedstock. I could not understand and asked the secretary why we were paying Pedstock,” he said.

Minister Chidhakwa insisted he was in the dark.

“The police, I think they have a company where they train their people; to tell you the truth I do not know how it is structured but what I then know is that after I saw the article, I asked the secretary why we were paying an agricultural company for the support that we give to the police.

“So I think it is something that you will have to ask between us and the Home Affairs Ministry for you to get a clearer picture,” he said. Minister Chidhakwa then asked Prof Gudyanga to tell the committee what transpired.

Professor Gudyanga told the committee that the payment arrangements had been made by the South African company contracted for security services whose details he was not willing to disclose.

“The Ministry of Mines and Mining Development has a contract with the organisation to investigate leakages. That contract also involves the ZRP (Zimbabwe Republic Police) and the company simply used Pedstock as a conduit for the money,” he said.

Professor Gudyanga said the company did not have a bank account. Dr Shumba reminded Prof Gudyanga that it was on record that the money was paid in cash. He said this amounted to externalisation.

Professor Gudyanga assured the committee that everything had been done aboveboard. He said he was in possession of documentary evidence. The committee demanded to know if it was coincidence that soon after MMCZ paid Pedstock, irrigation equipment was supplied and installed at Prof Gudyanga’s farm.

Prof Gudyanga said the company supplies equipment to various people and he was not an exception. He said he personally paid for the equipment. Prof Gudyanga said he paid a deposit and was yet to make a full payment.

But Dr Shumba said Pedstock was on record confirming receiving full payment for the equipment from Prof Gudyanga.

DEMBARE STAR SPARKS FIERCE BIDDING WAR -Green Machine join race to sign Brett Amidu

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HOT PROPERTY . . . Highly-rated midfielder Brett Amidu (right) works his way past CAPS United defensive pillar Dennis Dauda during the reverse fixture of the Harare Derby at the National Sports Stadium where he provided two assists for the Glamour Boys’ three goals in the six-goal thriller. — (Picture by Kuda Hunda)

HOT PROPERTY . . . Highly-rated midfielder Brett Amidu (right) works his way past CAPS United defensive pillar Dennis Dauda during the reverse fixture of the Harare Derby at the National Sports Stadium where he provided two assists for the Glamour Boys’ three goals in the six-goal thriller. — (Picture by Kuda Hunda)

Grace Chingoma Senior Sports Reporter—
CHAMPIONS CAPS United have launched an audacious bid to sign highly-rated midfielder Brett Amidu from bitter rivals Dynamos in what could spark a fierce bidding war between the Green Machine and FC Platinum. The Harare giants are also trying to bring in exciting midfielder Marlvin Gaki from Triangle. The Green Machine are strengthening their squad ahead of their return to the CAF Champions League next season where club president Farai Jere has set a minimum target of an appearance in the group stages of the tournament.

Brett shares the same agent with Gaki and yesterday preliminary talks between the duo’s management team and CAPS United were held.

The diminutive midfielder was one of the few bright spots for the Glamour Boys in a largely disappointing season for the record league champions who will close their 2016 campaign with a high-profile match against Highlanders at Barbourfields on Sunday.

The match is part of Bosso’s celebrations to mark the iconic Bulawayo club’s 90th birthday anniversary this weekend. Former Zimbabwe goalkeeper Bruce Grobbelaar could feature for Bosso in that showdown.

Brett is also being targeted by FC Platinum, but the player’s management appears to have given CAPS United the first option, with reports also indicating the midfielder wants to stay in the capital.

Negotiations between FC Platinum and Brett’s agent are underway. The younger of the two Amidu brothers, whose father Hussein was a star in his own right for Blackpool, is considered to be even more talented than his brother Amidu who was once signed by Kaizer Chiefs.

Some analysts believe he could be the next big thing in Zimbabwe football in the next few years. “There is no question about his raw talent and he could be a very, very big player if he keeps working hard,” legendary commentator Charles “CNN” Mabika, the host of ZTV’s weekly football magazine programme Game Plan, told The Herald.

“I think he is more talented than his brother, but he is young and let’s wait and see how he develops but the signs are looking good.” Brett was the man-of-the-match in a losing cause for Dynamos in the Harare Derby at Rufaro this year as he left veteran midfielder Method Mwanjali in the shade.

He was also outstanding for the Glamour Boys in the reverse fixture at the National Sports Stadium, showing his big match temperament, with two assists for Rodreck Mutuma and Masimba Mambare in a 3-3 draw. His performances in the two matches caught the attention of the Green Machine who believe he could provide the creative spark that their midfield badly needs.

With Gaki, on the wing, and Brett playing just behind the forwards, coach Lloyd Chitembwe would finally shift Simba Nhivi to play a role in the centre of attack after the forward spent most of this season playing wide on the flanks.

Nhivi scored seven goals, including the two goals in victories over Ngezi Platinum and Chapungu in the final two games of the season, which effectively sealed the Green Machine’s championship success.

Chitembwe believes Nhivi could thrive as a centre forward after regaining his confidence while playing wide on the flanks and scoring vital goals for the club of which six were for a winning cause and one helped them pick a point at Ngezi Platinum.

Gaki flourished for Callisto Pasuwa’s Under-23 side that qualified for the 2015 Africa Games after knocking out giants Cameroon in the countdown to the Congo Brazzaville Games. The 22-year-old Gaki’s contract with Triangle expires at the end of this month.

And the league’s new champions have not wasted any time opening negotiations with the midfielder with CAPS United looking at strengthening their squad as they make a return to the CAF Champions League after some years in the wilderness.

Gaki had a blinding game for the home-based Warriors when they met Zambia at the National Sports Stadium last month in a friendly international and emerged as the man-of-the-match in a 1-0 victory for the hosts.

He had been set to move to Tanzania and then Sudan but it appears CAPS United could hijack that deal. Gaki is one of the finest wingers in the domestic Premiership and, at the start of this season, opted to remain in the Lowveld when a number of players such as Hillary Bakacheza left for other clubs.

But he appears to have finally set his sights on a move to the capital after confining himself to the Lowveld for the past three seasons since moving to Chiredzi Football Club in 2014 and joining Triangle the following year.

Gaki is jointly managed by Takesure Chiragwi and George Deda but yesterday none of the two could be reached for comment. Lloyd Chitembwe said he could not divulge his wish list at the moment for fear of jeopardising the deals.

“Any coach would want a good player but at the moment, I cannot reveal any names. We have our targets as a club but until we tie up them we cannot reveal them. “You know other clubs, once you show interest in a player, they will share the same interest, so it is not wise to rush with names,” said Chitembwe.

The Coach of the Year added that he doesn’t believe his club is faced by player exodus. Players such as Dennis Dauda, Stephen Makatuka and Tafadzwa Rusike are believed to be eyeing moves from Makepekepe.

But Chitembwe is confident that he will retain 80 percent of his team. “I think the team would be more or like the same from the one we had this season. I don’t believe in rumours during the transfer period.

“Remember, even last season it was the same talk but we retained almost all the players,” he said. Chitembwe and his technical team are positive they will secure the signatures of all the players they want by December 31, the CAF deadline for registering players for the Champions League.

CAPS United have already expressed their interest in highly-rated Chapungu winger Xolisani Ncube and would want to take him on board.

RBZ releases more bond notes . . .as it’s set to draw down $65m nostro stabilisation facility

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 Dr John Mangudya

Dr John Mangudya

Happiness Zengeni Business Editor—
The Reserve Bank of Zimbabwe is set to start drawing down on its $65 million stabilisation facility from a European bank meant to correct the mismatch between current and expected nostro position.

The bank has also released the second batch of $2 bond notes amounting to $7 million under the export incentive scheme bringing the total in circulation to $17 million.

The $65 million facility was provided by Swiss bank and is part of the $215 million the central bank secured from international financiers. Already $150 million from the Africa Export Import Bank (Afreximbank) has been drawn down.

RBZ governor Dr John Mangudya told The Herald Business that the facility, just like the Afreximbank one, will be applied primarily to meet foreign payments of basic goods and to import cash.

“We don’t want to see any shortages of basic commodities so the funds will be primarily applied there and for loan repayments and dividend remittances.” The facilities will close the foreign currency inflow gap following the end of this year’s tobacco selling season. But ultimately Dr Mangudya said there was need to ensure that the measures are supported by a economic transformation agenda.

“Companies need to be more productive, generate employment and revenue for the Government and we are happy that through similar interventions, (like the SI 64) some companies are now operating at full capacity. In fact the foreign currency measures put in place by the RBZ provided fertile ground for SI 64.”

He said Zimbabwe had a good policy matrix but there was need for a good implementation matrix. “We need to reduce import dependency that is the reason why we are emphasising on production; we also need to put in place incentives for corporates and investors in addition to the export incentive.”

Dr Mangudya noted that it is not the Reserve Bank which does not have foreign currency but rather is the nation and for that it was imperative for the country to grow its exports to earn more. “Countries are built on trade”.

He said the RBZ had started paying exporters their incentives in line with the release of the bond notes. “The bond notes were never meant to be a solution to the cash crisis but are an incentive to encourage exporters to produce more.”

In a statement yesterday, Dr Mangudya said the central bank would release the second batch of $2 bond notes amounting to $7 million this week. This brings the total amount of bond notes disbursed to $17 million against a value of $70 million payable to exporters of goods and services under the export incentive scheme.

“We are pleased by the uptake of the bond notes. We shall continue releasing them on a measured or drip-feed basis at a ratio below the value of the export incentive scheme,” Dr Mangudya said, adding the central bank had no appetite to load the market.

Commenting on the quality, Dr Mangudya said the notes were of high quality and that the rubbing off of ink and the variation of the security thread on the notes are quite normal. He also spoke against the abuse of the $1 bond coin following reports that some members of the public were splitting the two parts that make up the coin.

EDITORIAL COMMENT: Bond notes are there to help, not an end

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The $2 bond notes have been accepted by just about everyone now, with the complaint going from “we will not touch them” to “the Reserve Bank has not issued enough”. But Reserve Bank of Zimbabwe Governor Dr John Mangudya has made it clear for months, as have all relevant members of the Government, that bond notes were never a replacement for the foreign banknotes in circulation, simply an addition.

They are not a solution to the shortage of banknotes, although they will obviously help, along with the bond coins now joined by the $1 piece, with small change.

And they are likely to remain in circulation. Too many foreign banknotes in circulation were gathered up by cross-border traders and others and carried out of Zimbabwe, sometimes legally but more often smuggled. Banks have higher import financing priorities than replacing all these lost foreign notes just so the new batches can also disappear over the borders.

What will solve the problem of banknotes shortages, and the associated ills of illegal externalisation of funds and tax evasion, is the triumph of plastic. That is once almost all transactions in Zimbabwe are done by moving digital funds, then the demand for banknotes, whether foreign or bond, will diminish dramatically.

At the beginning of the shortage the RBZ and Ministry of Finance took some swift steps. Costs of digital transactions were cut, although not the cost of a cash withdrawal, and it was made a lot easier for banks to import Point of Sale machines to issue to their retail customers.

Those moves, along with the banknotes shortages and the appalling costs in time to draw banknotes, help accelerate the switch to digital in much of the formal sector.

But even that switch has been uneven. In Borrowdale, for example, it is difficult to find even a small shop that does not have a POS machine. In the Kopje area it is unusual to find a shop that has.

For many people, cash is still needed to pay rent, since so many landlords, especially in the high density suburbs, demand cash. Second on the list must the highly fragmented motor trade, where even some fairly large businesses are still operating on a cash only basis. For both these groups we suspect that avoiding tax is probably a major reason for wanting cash.

And then we have the informal sector, where mobile money is becoming more common, there is the problem that few banks have simple ways of linking bank accounts to phone wallets. The RBZ and Finance Ministry must now press harder and help make Zimbabwe almost entirely a plastic culture.

The RTGS system is slow, taking several days to move money; online systems of various complexity and stability are becoming available but without publicly explicit standards and certification; and it is still hard for an unbanked little trader or service provider to go the plastic route.

What the two authorities need to do is, working with banks and phone companies, upgrade RTGS to a pure online system, set and ensure common standards for online transaction software, encourage more banks to create basic free bank accounts, cut transaction charges further, and figure out a way to link the mobile money to bank accounts.

The last might well require turning these cash transfer phone systems into a basic bank with some safeguards for those with money on account in the system. Bond coins and low denomination bond notes in very modest quantities can then fulfil that useful role of being carriers of value for small-change transactions, bus fares and a couple of tomatoes from a vendor, where cash would still be useful.


LIVE BLOG: 2017 NATIONAL BUDGET PRESENTATION

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 Updates by Costa Mano

1554: Minister Chinamasa has finished his presentation and we also conclude our updates. Thank you for joining us.

1552: With each new day in Africa a gazelle wakes up knowing that it should outrun the fastest lion to survive while a lion wakes up, stretches and knows it has to outrun the slowest gazelle in order to eat. As a country we should be able to outrun others in order for our economy to improve. such is the situation the country finds itself in.

1549: Paraffin usage was 12,7 million in 2009 but now stands at 75,8 million litres in 2016 which goes to show that it is being used by unscrupulous businesses that are blending it with diesel.

1545: Reviewing downwards presumptive taxes and the payments period from quarterly to monthly.

Click here to download the National Budget Statement

Click here to download the Budget Highlights

1541: Health Fund levy of  $0.05 for every dollar of airtime and mobile data.

1538: Six out  10 companies are supplying fiscalised machines so there’s need to licence more . Penalty for failure to connect to the ZIMRA fiscalised system should be imposed.

1536: Propose to ring fence importation of milk powder as requested by industry, propose to remove school uniforms from open general import licence,  duty free importation of sanitary ware raw materials.

1532: Government is intent on turning them around  public entities and some of the remedies will be freeze on remuneration, freeze on increase in prices, fees and charges by all public entities and if there should be need to increase they will need to be justified on a case by case basis.

1529: Ease of doing business is being improved across all sectors of the economy. Cost of credit, 15% lending rates coupled by short repayment periods remains unwarranted.

1526: Framework to accommodate the increasing number of graduates should be formulated.

1520: 5% export incentive to support exporters of manufactured products. Disposal of IDC’s loss making units and ensure it reverts to its core business of venture capitalisation.

1518: SI 64 of 2016 has been positive as reported average capacity utilisation has improved to 47%.

1517: 2017 budget gives prominence to the productive sectors of the economy. Mining is projected to grow, platinum export tax extended by another year to December 2017, diamond marketing will evaluate the proposal received from Parliament. Recapitalise mines through joint ventures, finalise pending viable joint venture deals.

1513: The Constituency Development Fund will be allocated under Parliament following the promulgation of the legislation to govern the fund. $50 000 will go to each constituency.

1507: $25,8 million for the completion of all dam construction works currently ongoing.

1505: The 2017 budget will prioritise resources towards social protection mechanisms with $600 million going towards empowerment and poverty programmes.

1504: Construction of 12 primary and 5 secondary schools are expected to commence next year.

1501: Some of the allocations include Health $208 million, Office of President and Cabinet $175 million, Local Government $49,7 million, Parliament $30,7 million among others.

1459: 2017 total budget is $4.1 billion.

1457: Expenditure in 2016 was 4.6 billion because of drought, bonus payments, salary arrears, debt servicing, employment costs accounted 91.4% of revenues. State of public finances characterised by finance gap $1.1 billion.

1455: Recovery depends on building confidence underpinned by policy consistency, international re-engagement, good rains, liquidity. Revenue targets continually revised down.

1454: The fundamental challenge remains under production across all sectors. Economy dominated by high unemployment. Agriculture affected by the El Nino drought.

1451: The 2017 National Budget is fourth budget of implementing the Zim Asset programme.

1450: Minister Chinamasa has started his presentation.

1448: President Mugabe has arrived in the August House.

1438: Minister Chinamasa preparing to start the presentation anytime from now.

1417: We will be giving you live updates of Finance and Economic Development Minister Patrick Chinamasa’s presentation of the 2017 National Budget scheduled for this afternoon.

Embarassment as Mudiwa breaks Jah Prayzah’s award

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0812-1-1-MUDIWA BEST

as The Herald fashion writer Zimoyo shines

Tawanda Matanhire Arts Correspondent —
Rapper Mudiwa Hood was embarrassed at The Style Oracle Awards held at Casa Mia in Avondale on Wednesday when he volunteered to receive an award on behalf of Jah Prayzah and accidentally broke the gong on stage.

Jah Prayzah was not at the ceremony as he was in South Africa to ink a deal for an upcoming collaboration with other big African musicians.

The “Watora Mari” singer won the Most Stylish video award for the track he did with Tanzania’s Diamond Platnumz. The ceremony also saw The Herald senior reporter and fashion writer Tafadzwa Zimoyo taking an award for Best Dressed Media Personality.

After indications that Jah Prayzah was not around and there was no representative to take the award, Mudiwa opted to represent his fellow artiste, but his good gesture backfired as he became the highlight of the ceremony for negative attraction.

The rapper, whose real name is Mudiwa Mutandwa, is not new to the embarrassment associated with standing-in for fellow musicians at awards ceremonies without consultation with the award winners.

In February this year he collected Trevor Dongo’s Zimbabwe Music Awards accolade and the gesture sparked controversy after Trevor’s camp publicly lambasted Mudiwa for rushing to take the award without their blessings when they had a representative for that role.

And on Wednesday it was another embarrassing incident. It seems the year that opened on a bad note for the rapper has ended in similar colour. When Rumbie “Newsbae” Takawira who was presenting the award realised that Jah Prayzah wasn’t present, she called for someone to collect the award on his behalf.

Mudiwa grabbed the moment of limelight and went to take the award. As he walked to the podium Takawira jokingly said she hoped the rapper would not pull the Trevor Dongo stunt again. It seems she sensed a bad occurrence coming.

Upon receiving the glass and wood gong, it slipped from Mudiwa’s hands and the glass part broke into pieces. He stood in awe, with embarrassment written all over his appearance. The incident was met with a mixture of laughter and expressions of sympathy.

He could not hide the embarrassment which made it difficult for him to settle down for his meal. He said he was out of words about the whole incident and begged journalists present not to publish the story.

“I am out of words guys and I am very sorry to Jah Prayzah for such an accident, please media guys don’t publish this,”Mudiwa said.

“Jah is my friend, he will understand this,” he said.

For a moment, he went outside claiming he was going to call Jah Prayzah and explain the situation. Jah Prayzah was not reachable for comment yesterday, but sources said he had accepted Mudiwa’s apology. Organisers of the award replaced the broken gong.

Speaking after receiving his award, Zimoyo thanked everyone who has supported him in his career and said he would strive to uphold the good standards recognised in his work by SOFA.

Tafadzwa Zimoyo

Tafadzwa Zimoyo

Zimoyo runs Fashion 263 column in the publication and has lived by the fashion tips that he gives in his articles. Miss Tourism patron Mrs Barbra Mzembi who was the guest of honour applauded the organisation for coming up with the fashion awards in the country.

“Thank you Kudzai (Madyopa, founder of the awards) and your team for a brilliant idea for having these awards for the first time. I think it’s a good way of lifting people’s self-esteem and make some of us to make an effort to improve how we look,” Mrs Mzembi said.

However, the awards ceremony was marred with disorganisation as it faced a lot of anomalies. Organisers had to reschedule the starting time from 6pm to 7.45pm which was a last minute decision after the venue management could not allow them to set up for the programme on time.

Founder and director of SOFA Kudzai Madyopa said time changing decision was beyond their control because they had to go with the venue management decision.

“We had to go with the venue management’s decision to start our set up for the programme a bit later because they wanted to also accommodate their guests,” said Madyopa.

Guests arrived while they were still doing their setup and most of them did not manage to go through a photo shoot as they went through the red carpet because there were no cameramen. There was also a problem with the sound and visual engineer who failed to execute his duties. He played wrong bites a couple of times and failed to give the visuals on the monitor.

Madyopa said she was glad they had managed to pioneer the fashion award and hoped for a better event next year.

“We wanted to make sure we do something to recognise fashion icons in the country and I am happy we managed to host the event,” she said.

“I understand that it wasn’t perfect but I promise that next year we are going to have a bigger and better event,” she said.

Entertainment was provided by Paul Martin. The presenting hosts were Hollywood Lee and Jefferson Muserera. The event was also graced by the reigning Miss Tourism Ashley Morgen.

SOFA winners list

Lifestyle/fashion photographer of the year

Optimass Art

Best dressed media personality

Tafadzwa Zimoyo

Best fashion blogger

Lillian Madyara

Best fashionista

designer suits for men

Thembani Mubochwa

Best designer couture

David Alford

Most stylish music video

Jah Prayzah — WATORA MARI

Most stylish artiste

Stunner

Best fashion house

JAN JAM

Continental style influencer

Craig Zoowie

Best dressed corporate

Greenworld

Fashion influenced diaspora

Rahima

Most stylish gospel influencer

Prophet Emmanuel Makandiwa

Most stylish individual

Pokello Nare

Pro-recovery 2017 Budget tabled

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Minister Chinamasa

Minister Chinamasa

Happiness Zengeni Business Editor—
Government plans to boost manufacturing industries and small businesses through pro-production interventions in the 2017 National Budget to instil investor confidence and spur economic recovery amid fiscal headwinds. It also sought to cushion the general public against the high cost of transactions on mobile banking by exempting companies from Value Added Tax and against unjustifiable increases in the cost of basic services after freezing prices and fees charged by public enterprises, including electricity, rates and water.

Finance and Economic Development Minister Patrick Chinamasa, in his 2017 National Budget proposals in Parliament yesterday, unveiled a raft of supply side interventions to enhance production across all sectors of the economy despite limited fiscal space.

The Budget was presented under the theme: “Pushing Production Frontiers Across All Sectors of the Economy”.

Minister Chinamasa acknowledged that Zimbabwe was in an unsustainable economic position characterised by low production, import dependency, low savings, low incomes, high formal unemployment as well as liquidity and cash challenges.

As a result, revenue collections have continued to shrink, with the 2016 position estimated to close at $3,52 billion from a mid-year revision of $3,69 billion. This is against $4,6 billion expenditures which included items which were outside vote appropriations initially made at the last Budget.

Some of the items relate to drought-related grain procurement, $253.5 million; Bonus payments for 2015, $177.8 million; December 2015 salary payment arrears, $138 million; and debt servicing amounting to $512.6 million.

For 2017, Minister Chinamasa said some of the spillover effects of the prevailing economic challenges will constrain revenue collection in the first part of the year. As a result, Government is projecting another budget imbalance for the next year, though much smaller, at $400 million from revenue collections of $3,7 billion and expenditures of $4,1 billion.

“This, therefore, reflects a (new) path towards reducing the budget imbalance through rationalisation and fiscal consolidation measures.

“Mr Speaker Sir, Government should move away from a situation where the perception and expectation that Treasury Bills have become a surrogate currency to meet expenditures and deficit financing,” Minister Chinamasa said. Government has been financing its deficit through the issuance of TBs now estimated at above $2,5 billion.

“The fundamental challenge remains that of under-production, entirely across all sectors of the economy. The major challenge for the 2017 National Budget is, therefore, taking the lead in ‘walking the talk’ with regards to implementing critical reforms.”

Some of the measures to support the stance taken by Government include removal of wheat flour, luggage ware (that includes bags and suitcases) and school uniforms from the Open General Import Licence. The Minister also proposed to amend bilateral rules of origin on flour, to the effect that the preferential treatment is granted to flour milled from wheat grown in the country for export

Treasury is set to increase customs duty on selected fabric, in order to level the playing field for the local industry. Clothing and furniture manufacturers will, however, continue to access fabrics duty free, under the clothing manufacturers rebate. Furthermore, it is proposed to avail additional raw materials under a rebate of duty on selected fabrics. This will provide a boost to the textile industry which is currently operating at between 30-35 percent.

In order to enhance its revenues, Minister Chinamasa will introduce a health fund levy of 5 cents for every dollar of airtime and mobile data. Resources raised would be channelled towards procurement of drugs and equipment for public health institutions.

The development themed ‘talk, surf and save a life’ was necessitated by the need to address overreliance on donor funding while increasing domestic funding for health.

“The continued reliance on a shrinking formal tax base to fund critical sectors such as health, is no longer sustainable, for both the taxpayer and Government. It is, therefore, critical that all economically active individuals contribute towards funding health services,” said Minister Chinamasa.

He said the shrinking tax base had also constrained Government’s capacity to invest in the public health delivery system, which was now being augmented with resources from development partners. The minister also introduced 40 percent excise duty on paraffin to stem illegal blending with diesel by fuel operators.

Further measures to boost revenues include the licencing of additional suppliers to supply fiscalised devices. “Currently, 10 companies are licenced to supply fiscalised devices, of which four are no longer operational. This has constrained the supply of fiscalised devices, thereby undermining progress of the programme.”

The minister also said Government will tighten existing legislative loopholes relating to the taxation of intangibles, general administration and management fees between associated companies, dividends arising from disallowed interest expenses and a permanent establishment.

Standard rating of meat products, rice, margarine and potatoes will be introduced while the debt redemption levy on petrol by 1 cent per litre, with effect from January 1, 2017. The minister also extended VAT zero rating to the supply of pipeline transportation, storage and handling services for purposes of delivery of fuel through the pipeline, with effect from January 1.

For small to medium enterprises, Minister Chinamasa said Government would eliminate double taxation on presumptive taxes payable under informal traders’ tax and make a downward review on the taxes.

“I have already identified inadequate working capital as one of the hindrances to the growth of SMEs. It is, therefore, proposed to ring fence revenue generated from presumptive taxes towards capitalisation of the Small and Medium Enterprises Development Corporation (SMEDCO) for on-lending to SMEs.”

Minister Chinamasa also said in order for efforts to formalise SMEs and enhance taxpayer compliance, particularly with regards to registration, filing of tax returns and payment of tax, the Zimbabwe Revenue Authority will intensify training programmes in collaboration with the responsible Ministry.

Government will introduce tax incentives for companies operating in Special Economic Zones. Under the proposed structure, companies investing in SEZs will be exempted from corporate income tax for the first five years of operation. Thereafter, a corporate tax rate of 15 percent applies.

There will be a Special Initial allowance on capital equipment to be allowed at the rate of 50 percent of cost from year one and 25 percent in the subsequent two years and Employees’ Tax Specialised expatriate staff will be taxed at a flat rate of 15 percent while raw materials inputs will be imported duty free.

Minister Chinamasa also extended the suspension of the export tax for another year to allow completion and migration to base metal refinery by December 2017. Minister Chinamasa said in the spirit of the agreed Social Contract already in place and launched by President Mugabe on February 26 2010, a general freeze on prices, fees and charges by all public sector entities will take effect from January 1 next year.

“Any increase in prices will have to be justified, and considered on its merits. This will include charges on water, power, rates, local taxes, environmental requirements,” he said. Minister Chinamasa projected the economy to grow 1,7 percent next year from the estimated 0.6 percent for 2016.

Allocations along Zim-Asset lines hailed

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Finance and Economic Development Minister Patrick Chinamasa tables his 2017 National Budget proposals before Parliament yesterday

Finance and Economic Development Minister Patrick Chinamasa tables his 2017 National Budget proposals before Parliament yesterday

Conrad Mwanawashe Business Reporter—
THE allocation of budgetary resources along Zim-Asset clusters is bound to stimulate production, ensure food security and turnaround the economy, analysts said yesterday. Economic analysts said this would bring the aspect of results-based management in the administration of economic resources. The new thrust is contained in 2017 National Budget proposals presented before Parliament by Finance and Economic Development Minister Patrick Chinamasa yesterday.

The Budget also contains a cocktail of other measures that include supporting the re-engagement process, promoting value chains and business linkages and funding the food and nutrition cluster.

Furthermore, economists hailed Government’s approach towards infrastructure development and incentives for Special Economic Zones, saying this was critical to ensure economic growth. Economist Dr Gift Mugano lauded the minister’s approach saying it was in line with results-based management, upon which Zim-Asset is premised.

“I liked the aspect of allocating funds along Zim-Asset clusters because Zim-Asset, which is based on the result-based management and part of RBM is to realign your outputs with resources. In the previous years it was not very clear how the budget was funding those clusters around ZimAsset,” said Dr Mugano.

“The Minister spoke about unplanned expenditures, which were coming from drought induced El Nino like importing grain. And the total budget, which was not planned for (about $600 million) with the lion share going to importation of grain, so the allocation of about $200 million towards food and nutrition cluster is very key. Because you are trying to avoid importing the same grain next year and that is a plus which is supporting production,” he said.

Immediate past chairman of the Zimbabwe Investment Authority Dr Nigel Chanakira, said fiscal space was always going to be narrow because the country faces massive challenges.

But despite the shrinking space, Dr Chanakira said Minister Chinamasa attempted to push the public sector investment programme by incorporating the private sector and also facilitating greater production by the private sector.

For instance, the concessions on delaying tax on platinum are a clear example where tax reliefs are extended to the private sector if it cooperates with Government in programmes such as value addition and beneficiation.

HIGHLIGHTS . . . 

  • Growth projected at 1.7 percent, from 0.6 percent estimated in 2016.
  • Agriculture and mining to drive overall growth with sector growth of 12 percent and 0.9 percent respectively in 2017.
  • Inflation projected at 1.1 percent, from a negative 1.5 percent in 2016.
  • Total revenues are projected at $3.7 billion.
  • Total expenditures are projected at $4.1 billion.
  • Financing gap of $400 million.
  • Government wage bill takes $3.0 billion in 2017.
  • Capital expenditure amounts $520 million, which is 3.6 percent of GDP;
  • Trade deficit of $1.537 billion, compared to $1.985 billion in 2016.
  • Debt stock at $11.2 billion as at 31 October 2016, which is 79 percent of GDP.

Dr Chanakira also saw the allocation of $7 million to helping the Infrastructure Development Bank to align itself with the public sector investment programme as another positive development.

“I would imagine that the private sector should actually now seize on efforts of that nature to try and stimulate economic production within the economy.

“Our infrastructure is in serious need of contribution in terms of private sector play and I think with such efforts in conjunction with the Special Economic Zones tax relief can aid the efforts in terms of boosting production, employment and infrastructure development,” said Dr Chanakira.

He, however, felt that Zimbabwe was running behind schedule in the re-engagement process and debt clearance with multilateral and bilateral institutions.

“The 1,7 percent GDP projection for 2017 shows that it’s not too optimistic a figure and I would think that the critical thing now is to get the arrears settled for the African Development Bank programme together with the World Bank. I actually had expected that that programme would have kicked in 2016. So we are actually running in a sense behind schedule on that deep debt rescheduling programme.

“I think given our savings ratio which are very low and of course the skittish behaviour of depositors at the moment we need a complimentary effort by the international capital markets if we could access them by making sure that that programme is brought back on track so that we can inject more liquidity into the domestic market and economy,” he said.

Empowerment activist Dr Davison Gomo, passed the budget as a big step in trying to deal with very complex issues facing the economy and said Minister Chinamasa was never going to come up with a magic wand at all because of the difficulties on the ground.

“But to the extent that he has tried to identify possible arrears, first to raise revenue, second to deal with questions particularly in relation to corruption and bad governance, I would imagine that the sum total of that could obviously see us moving forward in terms of confidence building which he raised,” said Dr Gomo.

“At the moment the reality is that Government has one perception of itself but the public has another and as long as there is no consensus in terms of those realities I think Government will be pulling in one direction and society another. There is need to bridge that.

“The only way that can happen is if your economy starts working, if corruption starts to be dealt with seriously and of course if policy consistency is better managed and far better delivery of Government programmes, unless that happens, a big problem,” he said.

Dr Gomo said focussing on infrastructure development could be a step in the right direction.

“Another area that might just be very important is emphasis on infrastructure development that is critical because just right now unless those issues are addressed the economy will not take off at the pace we want it to do and that will mean next year we are back to talk about the same thing again. And that’s not very helpful,” he said.

Bond notes to spur demand: Chinamasa

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President Mugabe and Vice President Emmerson Mnangagwa greet MDC-T parliamentarians before the National  Budget presentation by Finance and Economic Development Minister Patrick Chinamasa in Harare yesterday. — (Picture by John Manzongo)

President Mugabe and Vice President Emmerson Mnangagwa greet MDC-T parliamentarians before the National Budget presentation by Finance and Economic Development Minister Patrick Chinamasa in Harare yesterday. — (Picture by John Manzongo)

Golden Sibanda Senior Reporter—
FINANCE and Economic Development Minister Patrick Chinamasa says the recently introduced bond notes will spur private consumption and in the process boost the country’s weak aggregate demand. Presenting the 2016 National Budget Statement to Parliament in Harare yesterday Minister Chinamasa said with the slowdown in economic activity in the country, aggregate demand remained suppressed.

“Final consumption succumbed to low disposable incomes with private non-capital spending, declining by 4 percent. As a result, overall consumption is expected to decline by 2 percent in 2016 against a drop of 1 percent in 2015,” Minister Chinamasa said in his budget.

“The broadening of the range of multi-currencies through the addition of the $1 bond coin and the $2 and (soon to be introduced) $5 bond notes as an incentive to increased production for exports should spur private spending on the back of cash and liquidity improvements, that way boosting aggregate demand,” the Finance Minister said.

Reserve Bank of Zimbabwe Governor Dr John Mangudya introduced the surrogate currency, announced early this year, on Monday last week. The bond notes are a financial instrument introduced by the RBZ, as a 5 percent export incentive to encourage generation of exports.

The RBZ is in the process of drip feeding the bond notes into circulation, to avoid negative out-turn such as abuse or high inflation, with an amount of $75 million due to exporters to be released into circulation by year end.

However, a total of $200 million will be released into circulation over a period stretching to end of next year. The bond notes, which rank 1:1 in terms of value with the US dollar, are backed by a $200 million facility provided by regional banking group, African Export and Import Bank.

The minister, however, said Government consumption increased by 5 percent in 2016, as reflected through the high recurrent expenditures. National budget expenditure performance during 2016 has, however, been inconsistent with the revenue collection shortfalls being experienced.

Cumulative expenditures for January-October 2016 amounted to $3,84 billion, against a target of $3,32 billion, giving a variance of $520 million. Notably, Minister Chinamasa said Government exceeded its planned expenditure for this year due to the need to import grain to mitigate effects of drought, pay 2015 December salary arrears and sovereign debt arrears.

But it is introduction of bond notes, which is expected to improve liquidity in the economy and give consumers leverage to spend and firms to do business, which should spur the economy.

LATEST: Kereke freedom bid thrown out

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Chief Court Reporter

Jailed former Bikita West legislator Munyaradzi Kereke’s bid for freedom pending appeal against both conviction and sentence for raping his niece at gun point has today been thrown out by the High Court.

Justice Owen Tagu ruled that there were no compelling reasons to grant Kereke bail pending appeal.

Details to follow…

ZANU-PF: The trilemma that awaits in Masvingo

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zanu-pf First Secretary President Mugabe addresses members of the Zimbabwe National Liberation War Veterans’ Association in Harare in April this year. Sabre-rattling by the ZNLWVA leadership has, however,  fed into factional politics which the  revolutionary party must deal with decisively in Masvingo next week

zanu-pf First Secretary President Mugabe addresses members of the Zimbabwe National Liberation War Veterans’ Association in Harare in April this year. Sabre-rattling by the ZNLWVA leadership has, however, fed into factional politics which the revolutionary party must deal with decisively in Masvingo next week

The other side with Nathaniel Manheru—
The other week I had attempted a very angry piece on the state of thought in our beloved Zimbabwe. I shouted; I railed. After a while I reflected, and then recalled a proverb used by Amilcar Cabral in his 1966 Tricontinental Address in Havana, Cuba: when your house is burning, it’s no use beating the tom-toms!

He added: “. . . we are not going to eliminate imperialism by shouting insults against it. For us, the best and worst shout against imperialism, whatever its form, is to take up arms and fight.” Marx criticised Feuerbach for failing to recognise that “all mysteries . . . find their rational [explanation and] solution in human practice”.

So one cannot just rail against a tendency in the national thought structure; or moralise about it. Rather, one must rationally trace its provenance in social processes shaping our party ZANU-PF, and our nation, Zimbabwe. Processes both external and internal to the two, processes both adverse and positive, progressive and retrogressive. And then attempt some explanation. And then build a sound theory as a tool for social action, both for now and for the future.

Total lack of ideology?
To summon Amilcar Cabral again: “The ideological deficiency, not to say the total lack of ideology, within the national liberation movements – which is basically due to ignorance of the historical reality which these movements claim to transform – constitutes one of the greatest weaknesses of our struggle against imperialism, if not the greatest weakness of all.”

Then Cabral directed his address to the armed phase of the liberation struggle against imperialism; I am addressing a governing, bureaucratic phase, hopefully of the same struggle. As the recorded meeting between Che and Nasser revealed, a revolution gets less romantic, more frustrating when it transforms itself into a governing bureaucracy. But the weaknesses remain the same: ideological deficiency or total lack of ideology which Cabral identified, which he exhorted national liberation movements to overcome.

Amilcar Cabral

Amilcar Cabral

ZANU-PF has not been spared the same weakness, which appears even more starkly today than it ever did in its past. It is grave, so grave that it is even frustrating its efforts to hegemonise the national space. And like Cabral, I trace this internal weakness to a failure to correctly read the national social situation which we claim we seek to transform, and which instead has engineered serious internal weaknesses within the movement.

Defining the tri-lemma
How is ZANU-PF constituted as it retreats in convocation in Masvingo? What is the national situation within which it has existed, within which it situates itself, and against which it defines its agenda for transformative action? I am referring to Zimbabwe’s social structure, and how this impinges on ZANU-PF in its governing bureaucratic phase. What is the broader global environment within which it seeks to move Zimbabwe as a State actor given its anti-imperialist stance which has pitted it against powerful rulers of the so-called global village? The party, the nation, the global: that trilemma which ZANU-PF has to interpret, tackle and harness.

The issue of social structure requires a whole article on its own. I choose not to tackle it, only imply it by some of the observations I will make in respect of both the party and the nation. The key point is to remember that from the point of view of social structure, party and nation are oversimplifications, it being more accurate to talk about the class identity of forces that shape and dominate them in current circumstances. But against what is set to happen in Masvingo, such a discussion would largely be academic. I mean to be concrete, interventionist, if I can.

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President Mugabe

What the hell has gone on?
First, the Party. Unlike in past conferences, even congresses, ZANU-PF finds itself in a quandary, in a very delicate situation with far-reaching ideological and even existential implications. There is a way in which the Party may be read as having reached a confusing phase of de-census, a non-consensual phase both in terms of a definition of its past, and a projection of its present and future as an organizing, governing idea dominating the political scene.

Frankly, there is a perplexing re-narrativising of Zanu-PF’s past as a movement of national liberation struggle in ways that recklessly expends the lustre it has always carried from that defining phase. The Party’s present also exhibits an equally perplexing, near-fratricidal state of de-census.

Such that the old, homogenising narrative of sacrifice and struggle – all along its strongest glue – reads badly fractured; the once reigning sense of internal cohesion, itself the basis for broader national cohesion, screeches woefully for want of a smoothening lubricant. There is just too much noise coming from its moving parts and Masvingo cannot avoid asking: just what the hell has and is going on?

Confronting internal weaknesses
To draw from symptoms, however one looks at the Norton by-election, it put a lie to the Party’s brag founded on bagging previous by-elections which either went uncontested or weakly contested. Chimanimani, I daresay, is still part of that misleading easy victory. Bikita, on the other hand, may turn out to be some test, not so much because there is a strong opposition in that by-election, but because the Party’s capacity to overcome its internal weaknesses, its self-debilitating internal characteristics, will be on full show. Only then will we be able to tell how deep the ideological deficiency, if not lack of ideology, has afflicted it.

For a sound analysis of the state of the Party must certainly go beyond the easy cheer of opposition weaknesses; it must confront disharmonious lapses in ZANU-PF structures, strategies and personages, indeed look at the impact of these on the voter. It must assess how the ZANU-PF brand is faring in the political market, how sumptuous it still is in the eyes of the voting beholder.

Judging by the blame-game and personality politics of Norton, one senses an absence of courage to confront evident internal weaknesses through candid dialogue. Does it not suggest a real crisis of ideology and focus that messages from key figures of the Party at virtually every meeting have routinely been inward at a time when the nation is in the throes of a myriad problems? Inward, ironically, without being introspective? That rallies are being summoned to focus attention on clashing personalities, clashing ambitions, never on policies and programmes?

ZANU PF HEADQUARTERS

ZANU PF HEADQUARTERS

Successionists, secessionists, the twin evils
Secondly, again highlighting symptoms, both the Zimdef scandal and the recent so-called Mafios resolution have, in addition to the usual divisive factional politics, hinted at the resurgence of tribal and regional politics harkening to, and retracing the faultlines of early Independence. Both point to the stretch and a strain on the Unity Accord. Not so much because the value of the Accord is exhausted, but because there are unscrupulous politicians seeking to duck accountability by hiding behind it, and to overload it with imputations which are simply opportunistic and untrue.

This insidious trend points to deeper challenges around and ahead. Time was when the politics of the so-called Gukurahundi and Mthwakazi were wholly oppositional, well outside the harmonised and homogenised discourse of ZANU-PF.

One is not so sure now. Big mouths inside ZANU-PF itself are borrowing arguments from Mthwakazi, lisping the divisive vocabulary that reopens old wounds, that inflames passions of secession. Apart from succession, the tone of factionalism is assuming undertones of secession. Succession, secession, the twin evils.

Both Gukurahundi and Mthwakazi politics are being dangled as fall-back politics should the succession issue escalate beyond its present levels, or take a turn that is not favourable to some of these characters. Succession will thus lead to secession. For the first time after so many peaceful years, there is a real threat to national unity and national cohesion.

Significantly, the First Secretary and President of the Party recently hit out at both G-40 and Lacoste, suggesting he reads – correctly too – a destabilising Euclidian parallelism in both. I am not so sure that this state of conflict inside the Party is non-antagonistic any more. It might require something a lot stronger than moral suasion. What that is, I can’t say. Nor is it my business to say. But Masvingo may have to deal with this issue.

A real fracture, disjuncture
Then you have the issue of the war veterans association leadership. I am careful not to equate the association with the broad body and membership of war veterans. Yet whilst such a distinction may be valid organisationally, the impact of this whole altercation between the veterans and the Party is hardly wholesome, and blights just about everything in its wake.

From the point of view of ZANU-PF’s history, the altercation has spawned a counter-narrative, has fragmented the once coherent story of the national liberation struggle, in the process diminishing the once enchanting story, diminishing ZANU-PF’s exclusive claim to, and use of it. It has tested and taxed rather severely the founding myth of this country, our nation’s informing heroic history. On the ground, it has fed into factional politics by way of utterances which are perceived as sympathetic to this or that faction, in the process making factionalism an enduring problem in the Party. Or making it potentially bloody.

We are talking about a stratum that has fought a war here. Not a brawl among civilians. On the ground, it has severed the much-needed sequential, socialising link between the veterans and emerging Party youths, thus harming replicability of the ethos of militant resistance and struggle against imperialism. The fact of a youth movement which cannot repeat a single song from the struggle is telling enough.

The fact of inventing new songs, new idioms, new slogans for present times, is telling. Even new enemies from generations attached through filiality, both biologically and metaphorically. There has been a very bad disjuncture, a real fracture, in the Party.

The threat of disengagement
Yes, on the ground, the conflict has created a disturbing sense of apathetic detachment of many veterans who simply won’t want to be caught up in the ensuing melee, who won’t want to be forced to make choices in this polarising conflict. The more so when the acerbic and disrespectful rhetoric verges on the person of the President and First Secretary of the Party.

Or implies some distance from, if not a break with, ZANU-PF, all along the only political home they have known and belonged to. Or, as is happening, when the altercation emboldens enemies of the struggle, however reconfigured, whatever present complexion, who now read a tempting internal weakness in the once formidable liberation movement. By far, this is the most damaging dimension of the whole conflict. And the most threatening to a post-Mugabe Zimbabwe whose arguments against imperialism will stand dented, will have to make do with a diminished human symbol in the form and name of a maligned President.

Overall, ZANU-PF thus meets at a time when it cannot take itself and its ethos for granted, however strong it remains on the ground. Here I draw an obvious distinction between mere electability, as against the critical existential health of the organisation.

Gunning for the “long durree”
The second dialectic situates ZANU-PF within national politics and programme of action. Call it ZANU-PF in national governance. As a ruling Party, the test to ZANU-PF inheres in its continued capacity to plausibly pose and frame the national question, while answering it at the same time, consistent with its founding values. For it is at this level that the Party comes into daily contact with the citizen whose faith and belief in it must daily be sustained and renewal.

The way the Party frames and poses the national question must be encompassing and totalising enough to accommodate a broad range of burning issues and interests. But without being all things to all people, without losing its personality. Over the years, what has marked off ZANU-PF against all other parties has been its own way of approaching the National Question.

It has always done this within a value framework that validates its founding ideals and its broad vision of greater society. Not the current pseudo-intellectualism, the current egocentrism masquerading as thoughtfulness. And the just delivered State of the Nation Address (SONA), has shown how this exercise of raising the National Question can easily get enmeshed in all manner of fretful concerns on the here and now, the immediate.

Beyond crass oppositional criticisms of SONA which must be ignored, the tone of reaction to the address suggests a citizenry pressed and plagued by many questions, tormented by many challenges. In such a state, it is very easy to be swayed, even by the most superficial. Masvingo must re-moor debate, indeed prove to be an answer book to the real issues with lasting impact on the citizenry. ZANU-PF governs and guns for the long durree, never for the day, week, month or year.

Re-jigging productive forces
Not that the President’s book does not have answers. It has, as indeed is demonstrated by the four key policy initiatives taken so far, but which appear not understood by many in the Party. I am referring to SI64, Command Agriculture, the infrastructural project to dualise the Beitbridge-Chirundu Highway, and of course the far-reaching decision to restore a national currency.

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President Mugabe

Judging by the elite reaction to SONA, it is clear the opposition has no clue what will hit them in 2018. Of that, let very little be said. Masvingo’s real challenge is to marshal all voices in the Party to grasp the deep interlinkages in a series of measures taken so far, and to draw a fuller picture of what the bigger strategy is for the Party in the year ahead.

Just by way of example, there is a vast difference between looking at teething problems associated with the introduction of Bond Notes, and situating this currency initiative within the broader framework of re-jigging productive forces in the whole social structure for the resumption of the programme of empowerment and indigenization of the economy. What is more, the whole strategy has to be sold to the populace, has to be used to mobilise the country for the economic recovery whose benefits must begin to show in 2017, in time for 2018, all for another five years during which the economy must grow while transforming its whole ownership structure.

Bond notes

Bond notes

Neither cheer nor jeer does
With such a tight implementation time-table, the Party cannot afford discordant voices, especially coming from within. Not even non-believers or parochial successionists and secessionists who are given to interpreting broad national strategies in factional terms. These must lose ground and argument to ideologically clear-headed nationalists driven by the real national agenda, and ready in the not-so-distant future, to commit class suicide for the continuance of the revolution.

The present loud-mouthed lumpens, with all their shallow sophistry, must be handled with a firm, decisive hand, so they do not enervate the Party’s vital support base. Equally, the Party must keep its eye on the ball so it is not swayed by petty arguments focusing on symptoms. Again arguments around current cash shortages come to mind, arguments being brewed by a retreating band of elite confusionists who hoped the Bond Note would be rejected. They are stunned by the fact that the Note has been embraced, that demand for it is just phenomenal.

That means ZANU-PF has won a key test; why get distracted by superficies? And a superficial, knee-jerk response would be to print more Notes in response to a cry which will be met sooner than later, in the process raising the spectre of a worthless currency. Is it not interesting that hardly two weeks into the new Note, there is already an expectation that it plays the magic wand? Need we be detained by such expectations, all in the name of a Christmas break which lasts two, short days? Mortgaging life-long trust for a two-day wonder? We should never be cheered by the enemy and think we are doing fine. Or jeered by the same and then think we are doing wrong.

Tell no lies, no easy victories
A strategic response is to press on with tackling key issues of the real economy so the Note is stabilized by a Nation which goes back to work, a Nation which goes into full production, creating new, bigger, tradeable wealth. From such a perspective, both SI 64 and Command Agriculture become key. The one blocks unnecessary imports, the other generates raw materials for exports, the interactive set we badly need. Simply, we must produce to eat and to sell to the rest of the world. The import bill must compress drastically, get drastically trimmed to accommodate those capital goods and raw materials we need to produce more only. Masvingo must get all Party cadres to grasp this key message. It mustn’t encourage answers that are as false as they are easy. Tell no lies, there are no easy victories, said Cabral.

God is ZANU-PF
After all, politically the Party has stabilized things, warded off challenges. The fitful demonstrations which characterized the last half of the year are all gone. Challenges in courts are just academic. We can live with them as toys for restlessly idle minds seeking fame and drama. The fear of mass starvation in the wake of the debilitating El Niño factor, though not yet behind us, is largely tamed. We have done very well in feeding the nation, and 2018 will show how grateful the people are to the Party. The rains have come. The farmer is back in the field, breaking the clod, committing seed to the soil.

Didymus Mutasa

Didymus Mutasa

And that ZANU-PF has successfully weathered El Niño related food shortages, while mobilizing inputs for the 2016/17 season under Command Agriculture simply means it has been phenomenally successful both in saving and in serving! Always ZANU-PF, God has since moved in by way of the gushing rains, all to douse street dissent, to refocus the national effort away from leaping passions, indeed to lift the national mood with green hope. It’s over, it’s over, this tajamuka nonsense! Which is why Didymus Mutasa is remarkably clever to place a phone call to the President and First Secretary of ZANU-PF!

(File pic)

Agricultural inputs distributed under the Command Agriculture program (File pic)

Whither in the wake of new nationalisms?
Then there is the external, the global. Worldwide, systems are collapsing, falling. The year 2016 is not very different from 1989 and its long aftermath. The only difference is that it is no longer the Berlin Wall which is collapsing. It is Wall Street which is caving in. There is a major re-making or re-drawing of the world. Empires are busy reformulating their founding or existential premises. Capitalism is facing a furious blowback from the demon of globalization it unleashed. There is a big, militant retreat to the local. The impact of all this wave on small countries, small economies and small politics of countries like Zimbabwe, largely remains unknown. What risks, what opportunities, the uproarious retreat brings and presents to the Party and Nation, Masvingo will have to digest, assess and prefigure.

More than any other party and country on the continent, ZANU-PF and Zimbabwe have suffered direct hits from the global factor. The ANC of South Africa is just beginning to feel it too. We have been in the thick of things and, like small Cuba, our politics and values are too big to go unnoticed by the emperor. In the wake of 1989, we weakly re-christianed ourselves social democrats, firmly re-invented ourselves as nationalists in pursuit of an aggressive national agenda woven around the recovery of our land.

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What do we call ourselves now, in the wake of these changes? Is it capitalism with Chinese characteristics? State capitalism in other words? Without the capital? Or is it the capital of partnerships, of finite resources? How do we mobilize these? I hope, gentle reader, you now appreciate why the current ideological crisis in ZANU-PF is so irritating. There are larger questions to be answered, bigger issues to be digested. We have to brace up, which is why we cannot afford the current divisions and altercations.

Non-statal regime change
When Trump says the US will not be in the business of meddling in affairs of other countries, what does that mean for ZANU-PF, for Zimbabwe? Is that a genuine reprieve? How do we take full advantage of it? When Britain leaves the European Union, what is her new global calculation by way of a fall-back? Again what does that mean for ZANU-PF, for Zimbabwe? And the British exit blowback within the EU?

Donald Trump

Donald Trump

There is this general perception that neo-liberal values are set for a beating, given the general trend towards inward-looking global nationalisms personified by Trump’s America. The angst of the well-heeled, organized global neo-liberal movement may very well translate into non-statal actors both in the West and abroad, who aggressively continue with the push for the same neo-liberal agenda, even against the current setbacks. For ZANU-PF and Zimbabwe, this could mean an escalation of regime change politics ahead of 2018, with revalorized political NGOs playing agency. Mean same agenda, same pressures, only mounted from outside structures of hitherto hostile states.

The Trump moratorium may thus be deceptive. After all, regime change politics here have always been subcontracted to political NGOs. The Soros. And although Zimbabwe is not The Gambia, what has happened there must not be ignored, must be studied closely. Even in the heydays, Zanu-PF politics have never successfully cured the national mind against susceptibility to western influences. And, as the currency debate showed, the impact of dollarisation went beyond banking transactions; it created a pro-American psychosis: a mistaken belief that America is our foster parent! So, the Party, the Nation, the Global: such is the trilemma facing ZANU-PF in Masvingo. And the three must be kneaded into a coherent ideology, if the pitfalls highlighted by Cabral are to be avoided.

Icho!

nathaniel.manheru.@zimpapers.co.zw


Salary freeze for parastatal bosses

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Minister Chinamasa

Minister Chinamasa

Martin Kadzere Senior Reporter—
Government has frozen salary increases for public enterprise bosses, most of whom have been earning mega salaries at the expense of service delivery. The freeze also covers additional benefits. Prices and fees charged by public enterprises such as electricity, rates and water have also been frozen, with any reviews considered on merit. Salaries and prices charged by utilities for water and electricity have been identified as major cost drivers in production. Finance and Economic Development Minister Patrick Chinamasa announced the measures on Thursday.

Presenting his 2017 National Budget proposals, Minister Chinamasa said the Office of the President and Cabinet was now coordinating work in the development of a consistent remuneration framework for boards and executive management of State enterprises, local authorities and other public entities.

He said the current remuneration formats, inclusive of salaries, allowances and other perks, bore no relationship to performance. He announced a freeze of reviews of all remuneration and benefits of bosses at these entities with effect from January 1, 2017 pending finalisation of a new Public Sector Remuneration Framework.

“Once the proposed frameworks have been approved, the Office of the President and Cabinet, and the State Enterprises Restructuring Agency will assume the monitoring and evaluation role to ensure effective implementation.”

On the performance of public enterprises, Minister Chinamasa said where Cabinet had made specific decisions on the restructuring of a parastatal or a public enterprise, all responsible line ministries would be required to develop implementation plans.

The implementation plans should include specific targets, while implementation would be monitored by the Office of the President and Cabinet. Minister Chinamasa also announced that prices and fees charged by public enterprises, including electricity, rates and water had been frozen.

He said the move was necessary to allow for economic recovery and to complement other initiatives that Government had put in place to improve production and productivity. These include the Statutory Instrument 64 of 2016, which restricts imports of goods that can be locally manufactured and the introduction of bond notes to improve cash supply.

Since the introduction of SI64, some companies are now operating at full capacity while the general performance of the industry has improved.

Chombo dares malcontents

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Cde Chombo

Cde Chombo

Tichaona Zindoga Political Editor—
zanu-pf members seeking to either challenge President Mugabe’s authority or propose changes to the party’s constitution must come out in the open and test their popularity, Secretary for Administration Cde Ignatius Chombo has dared. In interview ahead of the party’s 16th National People’s Conference to be held in Masvingo from December 13 to 17, Cde Chombo said the one centre of power principle anchored on the party’s First Secretary was intact.

He touted the party’s democratic credentials saying members were free to raise issues they felt were important. He also acknowledged the existence of factionalism in the party, but said such ructions were not enough to destroy it.

“I can categorically state that the one centre of power, in this particular case the centre being President Robert Mugabe, is very much intact. It is cemented and there is absolutely no doubt about it,” said Cde Chombo.

“I know there are some malcontents out there who wish it was not so but this is what it is. The President is very much in charge and in control, very much loved and preferred. “I would dare anybody who thinks he or she has clout to come in and stand against the President. That person will be beaten to shreds like a prodigal child.”

He explained that as a democratic party, zanu-pf gave districts power to assess the performance of the party and make recommendations.

“Everyone has the freedom to raise anything. The issue is will others support you in what you are bringing forward? If it is a good idea, you will get traction. If it is not a good idea, it will dry in the wind. That is how things work. We are a democratic party and system,” he said.

He went on: “There is one centre of power, that is why we changed the constitution. But if you want to recommend a change of the constitution, you also have to bring your own arguments and we don’t shy away from them, they make the party strong. We are very clear.”

Cabinet meets on Monday

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Herald Reporter
Cabinet meets on Monday next week instead of Tuesday, Chief Secretary to the President and Cabinet Dr Misheck Sibanda said yesterday. Dr Sibanda advised all Cabinet ministers to attend the meeting as advised. “The Chief Secretary to the President and Cabinet, Dr Sibanda, wishes to advise Cabinet ministers that the next Cabinet meeting will be held on Monday 12th December, 2016 at the usual venue and time,” said the Ministry of Information, Media and Broadcasting Services principal director, Mr Regis Chikowore, in a statement yesterday.

Bill to amend Constitution on cards

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 Chief Justice Chidyausiku

Chief Justice Chidyausiku

Daniel Nemukuyu Senior Court Reporter
GOVERNMENT has crafted a Bill to amend the Constitution with a view to giving the President sole discretion to appoint a Chief Justice, Deputy Chief Justice and Judge President of his choice whenever such vacancies arise. Vice President Emmerson Mnangagwa, who also oversees the Ministry of Justice, Legal and Parliamentary Affairs, has set the process in motion by sending a memorandum to Cabinet proposing the changes to the supreme law of the country.

Law officer Mr Ephraim Mukucha from the Attorney-General’s Office pulled a shocker when he produced the memorandum, a copy of the draft Bill and an affidavit by the Permanent Secretary for Justice, Legal and Parliamentary Affairs, Mrs Virginia Mabhiza, during the urgent hearing of a matter in which a law student seeks to stop public interviews to select a new Chief Justice.

Chief Justice Godfrey Chidyausiku retires early next year and the Judicial Service Commission had initiated the process of selecting his successor. Deputy Chief Justice Luke Malaba, Judge President George Chiweshe and Supreme Court judges Justices Rita Makarau and Paddington Garwe were nominated as candidates for the post.

Their interviews were set for Monday.

However, a University of Zimbabwe fourth year law student, Mr Romeo Taombera Zibani, on Wednesday, filed an application at the High Court contesting the legality of the panel of JSC commissioners who are set to conduct the public interviews.

He sought the amendment of Section 180 of the supreme law of the country to do away with public interviews but grant the Head of State and Government powers to appoint a Chief Justice of his choice.

When Mr Zibani and the JSC had made their submissions of preliminary points before Justice Charles Hungwe, Mr Mukucha stood up and told the court that his clients, President Mugabe and Vice President Mnangagwa, were ready to abide by the court’s decision on the matter.

Before he took his seat, Mr Mukucha requested to submit the three documents.

After the documents were produced in court, JSC lawyer Mr Addington Chinake asked for an adjournment to take instructions in light of the development.

The memorandum prepared by VP Mnangagwa, in his capacity as Justice, Legal and Parliamentary Affairs Minister, sought to convince Cabinet to embrace the proposed amendments.

“It is proposed by this amendment that the office of Chief Justice, Deputy Chief Justice and Judge President of the High Court be appointed by the President after consultation with the Judicial Service Commission and that the office of Senior Judge of the Labour Court and the Administrative Court be appointed by the Chief Justice.”

It was also proposed that the changes to the Constitution should not require any referendum and a Bill to effect the changes, but must be gazetted three months before being debated in Parliament.

Mrs Mabhiza, in her affidavit, indicated that the process was already in motion.

“While the interviews have been slated for the 12th December 2016 in line with Section 180 of the Constitution, the third respondent (Justice Minister) has already set in motion a process of amending the provisions of Section 180 of the Constitution.

“The amendment seeks to provide that the President will have the discretion of appointing the Chief Justice in consultation with the Judicial Service Commission,” she said.

However, Mr Chinake for the JSC, questioned the usefulness of the documents.

“The third respondent has placed before you documents that are mere pieces of paper.

“The memorandum to the Cabinet and a draft Bill are unsigned, uncertified and there are no Cabinet minutes confirming the development.

“It is no different from any other piece of paper. It is not helpful. The Cabinet memorandum is not law neither is the draft Bill,” said Mr Chinake.

Mr Chinake said since Section 180 of the Constitution was still operational, it remained the law and JSC was simply complying with it.

“This court is obliged to enforce the law as it stands. A Cabinet memorandum does not override the Constitution. A draft Bill does not override the Constitution. There is no wrong that has been committed by JSC. It is simply acting in terms of the prevailing law,” he said.

Mr Chinake said there was no confirmation from the legislature that it intended to amend the Constitution. He added that the attitudes of the President and Cabinet towards the issue were never communicated to the court, hence the application must be thrown out.

A bid by JSC to seek Justice Hungwe’s recusal from handling the matter hit a snag.

JSC argued that since Justice Hungwe’s son worked for Venturas and Samukange that represented Mr Zibani, the judge had to recuse himself for professional reasons.

Justice Hungwe dismissed the application and proceeded to hear the matter.

After hearing arguments from all the parties, Justice Hungwe reserved judgment.

Mr Zibani wants the High Court to order VP Mnangagwa to initiate the amendment of Section 180 of the Constitution of Zimbabwe to allow President Mugabe to use his own discretion to appoint a Chief Justice of choice without going through the interview process.

Alternatively, Mr Zibani has proposed the setting up of an independent panel comprising retired judges to preside over the public interviews.

Some of the panellists, according to Mr Zibani, are junior to the four nominees, creating challenges for them to interview their bosses.

Mr Zibani described the relationship between Chief Justice Chidyausiku and the four candidates as “incestuous” and he was not in a position to fairly preside over the interviews.

RBZ to act on high bank charges

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Dr John Mangudya

Dr John Mangudya

Bianca Mlilo Bulawayo Bureau
THE Reserve Bank of Zimbabwe (RBZ) is working on reducing bank charges and withdrawal fees in response to a national outcry from the transacting public. Due to the persistent cash shortages in the economy, banks have continually reduced the maximum withdrawal limits from about $200 in June to as low as $40 presently. However, charges levied on bank transactions remain the same and are not proportional to the reduced withdrawal limits.

Depositors have accused banks of “robbing” them of their hard-earned money through repeat charges levied on a series of withdrawals. RBZ Governor Dr John Mangudya (pictured) said yesterday that the central bank was aware of the issue and would soon announce measures to protect depositors.

“Indeed, we are working on reducing the bank charges to ensure that banking services are not punitive and that they promote financial inclusion,” he said. Dr Mangudya would not be drawn into giving details about the new measures, which he said would be finalised next week.

Banks have been making a killing from the banking public for the past few months and depositors have appealed to the Government for protection. Desperate depositors continue to flood banking halls to withdraw their cash despite its shortage and numerous charges. Some depositors are spending nights in queues.

A snap survey conducted by The Chronicle yesterday revealed that for one to withdraw $75, which is made up of $50 and $25 in bond notes, they have to part with $5,50. This is in addition to monthly service charges of $5 or more.

The public has called for the crafting of a law that compels banks to deduct charges only once and allow people to withdraw their salaries without being charged on ensuing transactions.

Bank charges were last revised in June when Dr Mangudya set the maximum Real Time Gross Settlement charge at $5 from $10 while Automated Teller Machine charges did not change at $2,50.

Electronic funds transfer presently attracts a minimum fee of 33 cents and a maximum of $2,10, while a Point of Sale transaction of up to $10 attracts a charge of 10 cents, and transactions above $10 will be charged 45 cents, a reduction from $2,50.

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