ZimJournalists Arise

2007-02-16T20:40:00.000+02:00

Are The Chickens Finally Coming Home To Roost

The past few weeks since the beginning of this year, show that 2007, is certainly going to be an interesting year.

Indications are that the people of Zimbabwe, are not only angry but have become a bit more agitated and restless.

For journalists, this is going to be an exciting period in their careers. But also also a dangerous one. The Mugabe regime is known for reacting more viciously when it feels it is being cornered.

However the Co-ordinator of the Zim Journalists Arise, urges Journalists to not only keep safe, but also to be cautious in blindly cheerleading pro-democracy groups. Although journalists are not activists, we urge journalists to continue to criticise these groups, challenge them and hold them accountable to their promises. That way no-one group becomes complacent.

A speacial mention goes to Progressive Teachers Union, secretary general Raymond Majongwe for a job well done. With more Majongwe's Zimbabwe will soon be a free country again.

Happy and Safe Reporting.

2007-02-16T20:39:00.000+02:00

Tsvangirai Rally In Chiredzi Ahead Of Weekend Elections

By Gerry Whitehead
(Lowveld News)

The MDC rally was held at Dorman Long Township near the Hippo Valley Estates mill not Dumisa Township as I had reported yesterday.
Morgan Tsvangarai arrived late from a morning rally that the party had organized at Chikombedzi; some 150 km away on some of the worst roads in Africa (No feed back on this rally yet)

No sooner had Morgan arrived 10 police officers also arrived in a L/Rover which I had seen parked near the mill an hour before. (Obviously waiting for word of Morgan’s arrival.) The police spoke to Mishek Marava (The shadow MP for the MDC Zaka East) who went over and spoke to Morgan obviously to tell him that he was out of time for his meeting. (This was confirmed later)
Morgan ignored this and managed to give a 15 minute speech where he described the hardships that the ZANU PF Government had caused the people and the only way out was to vote for the MDC. He never once mentioned the break away faction and ended by daring the police to arrest them, telling them that he was ready for this if they did try.

The rally ended with a prayer by Elias Mudzuri (The suspended mayor of Harare) who finished with “we hope that GOD will give the police some new boots.” This did bring out a roar of laughter from the crowed including the police. (All the MDC rallies that I have been to have started and ended with a Prayer)

The rally I feel was a disappointment as there were only about 80 people there and they seemed to be very subdued and Morgan did not have enough time to get his full message across.
The good news though, is that on the way to and from the rally I was greeted with the MDC’s hand signal many times, in fact for the last 3 to 4 months I have noted an increase of these signals, not once in the last 12 months have I seen a ZANU PF fist signal directed at me. I have found the people in the communal areas very friendly but always begging for a hand out. However this is very different on the occupied farms, there a white person would be in grave danger, this is where Mugabe’s supporters are located.
Mugabe in just 27 years has turned this country into a land of dying people, thieves and beggars.

There is no doubt in my mind that sooner or later the economics in this country will trigger mass action, hopefully the leadership in the MDC will be ready for this.

2007-02-16T20:35:00.000+02:00

Private Radio Stations No Longer Broadcasting, Martial Law Declared In Guinea

By International Federation of Journalists
The International Federation of Journalists (IFJ) today called on the authorities in Guinea to stop terrorising media after recent attacks on radio stations that took place even before the government's declaration of martial law yesterday evening.

Before martial law was declared yesterday, soldiers arrested two
employees of a radio station and raided two stations and demanded that they stop broadcasting. Currently no private radio stations are broadcastingin the country, either because they have been shut down or are afraid of military attacks.

"We are calling on the Guinean authorities for the immediate and
unconditional release of two FM Liberté employees," said Gabriel Baglo, Director of the IFJ Africa Office. "We denounce this terror in the mediainstituted by the state of siege and invite President Conté to put an end to it without delay so that the journalists can work with complete freedom and in full safety."

Yesterday soldiers attacked FM Liberté, one of the four new private
radios stations in Guinea. The soldiers destroyed some equipment before arresting journalist Mohamed Tondon Camara and technician David Camara.

The attack followed a phone-in programme during which the listeners
asked for the departure of President Lansana Conté.

Similar programming, according to sources, prompted soldiers to raid another private radio station, Familia FM, and demanded it stop broadcasting. Fearing that they will also be attacked, the two other private radio stations in Guinea have decided to shut down.

Yesterday evening President Conté declared martial law and said the
country was in a "state of siege" after unions called a general strike and more than 10 people were killed. According to the President's decree,the military authority "is entitled to take suitable measures to ensure the control of the press and publications of any nature, as well as radio or television broadcasted programmes."

The army also has the authority to control postal, telegraphic and telephone correspondence.

The IFJ fears for the safety of local journalists and correspondents for international media in Guinea, some of whom are now in hiding because they fear they will be attacked. Reporting in the field also presents enormous risks for them. One was already injured during demonstrationsin Guinea in January when someone threw a rock at a car carrying journalists.

2007-02-16T20:31:00.000+02:00

Two US journalists Avoid Prison After Source Turns Self In

By Reporters Without Borders

Lance Williams and Mark Fainaru-Wada, of the daily "San Francisco Chronicle", threatened with imprisonment by a federal court for refusing to reveal their source of information in a sports drugs scandal, are unlikely to goto jail after all.

But the Reporter Without Borders said this conclusion did not resolve the root of the problem, since the source had effectively turned himself in and pleaded guilty.

"If the lawyer Troy Ellerman had not admitted to giving information to Williams and Fainaru-Wada, the prison sentence imposed in the lower court for "contempt of court" would likely have been upheld on appeal on 7 March 2007," the organisation said. "This is a happy outcome for the journalists but is in no way a victory for press freedom and protection of sources."

Williams and Fainaru-Wada reported in the "San Francisco Chronicle" in 2004 on a federal grand jury investigation into drug-taking in the sports world, implicating the Bay Area Laboratory Co-Operative (BALCO). The journalists had obtained a copy of testimony by three baseball players and one athlete accused of taking steroids allegedly provided by BALCO.

Ordered to reveal the source of the investigation leak, the two
journalists cited the right to protect their sources, which is recognised in 33 states, but not at the federal level. On 15 August, federal judge Jeffrey White sentenced them both to 18 months in prison for "contempt of court", the maximum penalty. Their lawyers immediately appealed.

Their appeal was frequently adjourned but finally set for 7 March 2007.

In the meantime, on 14 February, Troy Ellerman, one of the a lawyers for the accused sports figures, admitted that he had given the journalists his clients' statements and said he would plead guilty to "contempt of court", "obstructing justice" and "breaking an oath", offences considered federal crimes. Ellerman faces two years in prison and a US$250,000 fine, if the judge accepts the deal.

Speaker of the House of Representatives, Nancy Pelosi, on 19 January had pleaded the case of the two journalists in a letter to the Attorney General, Alberto Gonzales, repeating her support for a federal law guaranteeing journalists the right to protect their sources.

Reporters Without Borders said Nancy Pelosi's action in taking up the case of the two journalists with the department of justice and voicing support for a federal "shield law" allowing protection of sources meant that the case had in one respect marked a major step forward, in the direction sought by the organisation.

2007-01-31T03:53:00.000+02:00

(pix by IWMF)
Women Journalists Invited To Apply For The International Media's Foundation's Awards For Bravery

Former Daily News Editor Sandra Nyaira won this award in 2002 can our Zimbabwean female journaists apply for this and make it a second, Come On Ladies, especially at a time when there is a very poisonous letter writer who is working day and nite to tarnish the image of Zimbabwean journalists in the name of press freedom. While it seems the journallism fraternity is watching this poison pervade our newsrooms until this poison touches them personally, this is the time for Zimbabwean female journalists to work harder and prove that they have sweated and worked hard to be where they are. The reckless, malicious name dropping is a shame of our journos and some respected editors

By I-JNet
Women journalists from any country who have demonstrated strength of character in pursuing their profession under difficult or dangerous circumstances have until March 15 to be considered for a journalistic prize.

The International Women’s Media Foundation (IWMF) is seeking nominations for the Courage in Journalism Awards and Lifetime Achievement Award

The first award will recognize three women who show a commitment to journalism in the face of government oppression, political pressure, physical danger or other intimidating obstacles. The Lifetime Achievement Award will honor a woman journalist who has a pioneering spirit and whose determination has paved the way for future generations of women.

Self-nominations are not accepted, and all the nominations must be in English. Each winner will receive a cash prize of US$5,000. The award ceremony will be in New York and in Los Angeles at the end of 2007.

2007-01-31T03:47:00.000+02:00

World Association Of Newspapers To Hold Press Freedom Conference

By IFEX
The challenges and opportunities of new media for press freedom are the subjects of a major conference in Paris in February organised by the World Press Freedom Committee, the World Association of Newspapers and the United Nations Educational, Scientific and Cultural Organisation (UNESCO).

The conference, to be held on 15 and 16 February at UNESCO headquarters, examines a wide range of issues around new media's impact on press freedom, both positively and negatively.

Full conference details, including registration information, can be found at http://www.wan-press.org/article12826.html .

Sessions include:

"New Media -- Expanding Press Freedom," an opening session with presentations by Koichiro Matsurra, Director General of UNESCO, Richard Winfield, Chairman of the World Press Freedom Committee, Timothy Balding, CEO of the World Association of Newspapers, and Leslie Harris, Executive Director of the Center for Democracy and Technology.

"New Media in New Democracies," which will present case studies and will feature Pauls Raudsept, Editor of the Editorial Page of the Diena daily in Latvia, Fabricio Altamirano, Publisher of El Diario de Hoy in El Salvador and Chairman of the Inter American Press Association's Internet Committee, Levan Berdzenishvilli, a Member of Parliament and an Internet specialist from Georgia, Elizabeth Barrat, Executive Editor for Multimedia and Training at The Johannesburg Start and General Secretary of the African Editors Forum, and Albert Rudatsimbura Byron of Contact FM in Rwanda. The session will be moderated by Johann Fritz, Director of the International Press Institute.

"New Media Under Challenge," with presentations by Soe Myint of Burma, Editor of Mizzima online news service, Sharon Hom, Director of Human Rights in China, Karin Deutsch Karlekar, Managing Editor of the Freedom of the Press Survey at Freedom House, and Anton Nosik, President of the Rambler Search Portal in Russia. The session will be moderated by Abi Wright, Communications Director of the Committee to Protect Journalists.

"Direct Satellite Broadcasting/Digital TV/Public Service Broadcasting - Opportunities for Diversity," which will feature Imad el Atrache of Al Jazeera, Saad Mohseni of Tolo TV in Afghanistan, Boris Bergant of RTV Slovenia, Jean Lesieur, Deputy Editor of France 24 international network, and Alfonso Ruiz de Assin, President of the International Association of Broadcasting. The session will be moderated by Henrikas Yushkiavitshus, Media Consultant and former Vice Chairman of Gostelradio in Russia.

"News Online," with Sankarshan Thakur, Executive Editor of the Tehelka online newspaper in India, Neil Budde, General Manager of Yahoo!, Rosental Alves, Director of the Knight Center for Journalism, Nora Paul, Director of the Institute for New Media Studies at the University of Minnesota in the United States, and Sawaan Zaidah, Editor-in-Chief of AmmanNet Radio in Jordan. Moderator for the session will be Mogens Schmidt, Director of the UNESCO Division of Freedom of Expression, Democracy and Peace.

"How Young People Get Their News", which will feature Chris Schuepp, Coordinator, Young People¹s Media Network, UNICEF, Roxana Morduchowicz, Director of Media Education, Argentinian Education Ministry, Evelyne Bevort, Associate Director of the Centre de Liaison de l¹Enseignement et des Moyens d¹Information in France, and Robert Barnard, Founder and Partner, of the Canadian research firm D-Code. Moderator for the session will be Aralynn McMane, Director of Young Readership Development for WAN.

"Bloggers as Journalists/Local News and New Media/Citizen Media", which includes Oh Yeon-Ho, Founder of Ohmynews online newspaper in South Korea, Steve Yelvington, Vice President of Morris Digital Works in the United States, Karma Tshering Bhutia, Research Coordinator for Nepal Community Multimedia, Declan McCullagh, Senior Writer for CNET News.com in the United States, and Ehab Elzelaky, Blog Editor at the Al Dustour weekly in Egypt.
The Moderator will be Mary Lou Fulton, Vice President of Audience Development and The Bakersfield Californian in the United States.

"Circumventing the Censors", with presentations by Gus Hosein, Visiting Fellow at the London School of Economics, Gerry Jackson, Founder and Station Manager of SW Radio Africa, Omar Faruk Osman, General Secretary of the National Union of Somali Journalists, and Leonard Sussman, Senior Scholar for Freedom House. The Moderator will be Julien Pain, Head of the Internet Freedom desk, Reporters Without Borders.

The concluding session will include Abdul Waheed Khan, Assistant Director, General for Communication, UNESCO, Gary Kebbel, Journalism Program Officer, John S. and James L. Knight Foundation, and William Orme, Policy Advisor, Independent Media Development, United Nations Development Programme.

Simultaneous interpretation will be provided in English and French.
The conference is supported by the Coordinating Committee of Press Freedom Organizations, which includes, in addition to WAN and the WPFC, the Committee to Protect Journalists; Commonwealth Press Union; Inter American Press Association; International Association of Broadcasting; International Association of the Periodical Press (FIPP); International Press Institute; North American Broadcasters Association; and the World Press Freedom Committee.

The Paris-based WAN, the global organisation for the newspaper industry, defends and promotes press freedom world-wide. It represents 18,000 newspapers; its membership includes 76 national newspaper associations, newspaper companies and individual newspaper executives in 102 countries, 12 news agencies and 10 regional and world-wide press groups.

2007-01-24T02:30:00.000+02:00

Media scholarships to attend AIDS conference

By I-JNET
Region :Sub-Saharan Africa
Country :South Africa
Topic :Health, HIV/AIDS, Fellowships and Awards

Journalists interested in HIV/AIDS can apply for a scholarship to attend the 3rd South African AIDS Conference. Application deadline: January 31.
The main aim of the conference is to bring together activists, community workers, policy makers and media representatives to reach a consensus on prevention, treatment and care. The event is scheduled to take place June 5 to 8 at the International Convention Center (ICC) in Durban.
Scholarships are available for journalists to encourage a large number of media representatives to attend the conference. The scholarship covers the registration fee only. All applicants must be able to cover their travel, accommodation and living costs independently.
An application form for the media scholarship is available on the conference website. Interested applicants should download and e-mail the completed application to sec@sa-aidsconference.com or print and fax the completed form to the conference secretariat at local fax: 0861 115 181 5 or international fax: +27 (0) 12 460 7191 2658.

For more information, visit http://www.sa-aidsconference.com.

2007-01-24T02:26:00.000+02:00

Guinea Minister Censors All Private Radio Stations
As Zimbabwe braces for more strikes

By the Media Foundation for West Africa (MFWA)
The Minister of Information of Guinea, Boubacar Yacine Diallo, on 15 January 2007 ordered all private and community radio stations not to broadcast any material on the ongoing general strike by the country's workers protesting against the high cost of living and other national concerns.

The Media Foundation for West Africa (MFWA) correspondent reports that Yacine Diallo issued the directive in separate visits to the various radio stations and threatened to confiscate the broadcasting equipment of any station that disobeyed the gag orders.

The correspondent said that the minister, who is the former chairman of the media regulator, the National Council for Communication (CNC), told the journalists, "I still control the CNC and I assure you all that all the security forces are on the alert".

On the state media, the correspondent reported that Yacine Diallo has assumed the control of the state radio and television stations and personally edits the news for broadcasting.

Following the government censorship orders, the private newspapers have also stopped publishing in solidarity with their colleagues in the electronic media.

The two main trade unions, the National Confederation of Guinean Workers (CNTG) and the Guinean Workers Union (USTAG), and the opposition parties want President Lansana Conte to step down from power as a result of his prolonged ill-health and other national concerns, including the general situation of undemocratic governance, corruption, and the impoverishment of the population.

The MFWA condemns the imposition of censorship on the media in Guinea as a gross violation of freedom of expression, and a threat to peace, stability and democracy in a country that has been near collapse into violent conflict for some years now.

The MFWA calls on the government to lift the censorship immediately. The organisation also urges democratic leaders in the ECOWAS to pressure the Guinea government to initiate steps to democratise governance.

Guinea, the last country in West Africa to introduce independent broadcasting, opened up the airwaves for private broadcasting in early 2006.

2007-01-24T02:24:00.000+02:00

Increased Online Censorship In China

By Reporters Without Borders

There has been a wave of violations of online free expression since the start of the year, says Reporters Without Borders. A website covering corruption cases was shut down on 8 January 2007, the Sichuan authorities are continuing to enforce an Internet ban on Tibetan poet Woeser and the wife of Yang Maodong (Guo Feixiong), one of the 50 cyber-dissidents jailed in China, said on 12 January that he is being regularly tortured.

"The Internet is developing at breakneck speed in China but without any letup in censorship," Reporters Without Borders said. "Both in Beijing and the provinces, the authorities still crack down on those who discuss sensitive political issues online. We are particularly shocked at the report of Guo Feixiong being tortured in prison. China continues to be a police state that sees the Internet as something to be censored and controlled. This must be resisted."

A lawyer held since 14 September 2006, Guo Feixiong is officially charged with "illegal business activities" but the real reason for his detention is his human rights activity. He is a member of the writers' organisation, the Independent Chinese PEN, and regularly wrote for news websites. His wife, Zhang Qing, told Agence France-Presse he has been repeatedly tortured. She said he had been chained to a bed and beaten for 40 days in a row to make him confess.

The authorities are continuing to enforce an online publication ban on Tibetan writer and poet Woeser, whose blogs were shut down in July 2006. The police in the city of Mingyang, in the southwestern province of Sichuan, ordered a Tibetan website on 7 December to eliminate any reference to her writings.

Finally on 8 January, the police in Xiamen, in the southeastern province of Fujian, closed down http://www.lixinde.com , a website founded in 2003 that published news about corruption cases and monitored the activities of local authorities. The police said it published "bad information." One of its recent articles was headlined "Liaoning province committee secretary protects murky forces."

2007-01-18T19:13:00.000+02:00

Latest MMPZ Report

1. General comment
THE country’s worsening human rights situation continued to dominate the limelight during the Christmas holidays and the beginning of the New Year. The media carried 36 stories on the subject (between December 18th and January 14th) of which 12 were new incidents and the rest were follow-up reports.

The 12 included stripping publisher Trevor Ncube of his citizenship; the detention and victimisation of opposition party officials and supporters; an attack on civic activists, and the indiscriminate killing of civilians by the police.

Although the official media carried some of the stories they reported them passively, treating them as normal developments.

For example, The Herald (30/12) merely announced that Ncube was contesting the authorities’ decision to strip him of his Zimbabwean citizenship on the basis that his father was born in Zambia. It quoted Registrar-General Tobaiwa Mudede defending his actions saying Ncube had allegedly failed to “renounce (his) Zambian citizenship by descent within the prescribed period (July 6 2001 to January 6 2002)” as required under the country’s tyrannical citizenship laws.

No attempt was made to discuss the implications of this development on the future of his publications, the Zimbabwe Independent and The Standard.

Instead, ZBC (4/1, 8pm) and The Herald (5/1) reported the Media and Information Commission dismissing online agencies’ reports arguing that the move could be part of government’s plans to shut down his papers, which are among the few alternative sources of information still available to the public.

Apart from falsely claiming that such reports emanated from Ncube’s weeklies, the commission misled the public into believing that under AIPPA the matter was inconsequential to his ownership of the two papers. It claimed that the law permitted Ncube to “maintain his ownership” of the papers “as long as he was regarded as permanently resident in Zimbabwe”.

The official media allowed such deceptive claims to pass without scrutiny therefore misleading the public into believing that there was no threat to his newspaper group. For example, they did not clarify the crucial issue of whether stripping Ncube of his citizenship automatically provided him with permanent residency status. MMPZ has not studied the law under which Ncube lost his citizenship, but it is most unlikely that it provides for automatic permanent residency and therefore the act of depriving Ncube of his Zimbabwean citizenship would still have implications for his shareholding in the Independent newspaper group.

Similarly, The Herald passively reported on the arrest (18/12) and the release on bail eight days later (22/12) of MDC MP Paul Madzore on public violence charges without interpreting the matter as indicative of the authorities’ unrelenting assault on civil liberties.

Neither did the paper, nor indeed, any government media, condemn the shooting to death of civilians by police, nor the arson attack on civic activist Lovemore Madhuku’s house.

As has become the norm, it was only the private media, especially the niche market private radio stations and online agencies that reported these violations in the context of them being indications of a paranoid and intolerant police state.

THERE was no marked difference in the manner in which the media tackled the country’s economic distress over the Christmas and New Year holidays, including the week ending January 14th.

The government media continued to reserve its energies to showering praise on the authorities’ economic programmes while only the private media remained critical of the direction government was steering the economic fortunes of the country.

For instance, although all media highlighted the country’s continued economic problems in the 237 stories they carried on the subject during this period (ZBC [93], the official Press [44], private Press [59]) and private electronic media [41]), only the private media linked the problems to government’s failed policies.

In contrast, the official media – which momentarily monopolised the media space over the better part of the festive period following the mainstream private papers’ holiday shutdown – dishonestly attributed the troubles to “illegal Western sanctions” and unscrupulous businesses. At the same time they depicted the authorities as taking the correct measures to revive the economy in 2007 and lessen consumers’ suffering.

Their duplicity was mirrored by the way they reported on skyrocketing inflation, commodity and service charges, and incidents of labour unrest, which also dominated media space in the week ending January 14th.

For instance, all the 77 stories they carried on these issues in the week (ZBC [40] and government papers [37]) only highlighted these indicators of economic decline without reconciling them with official optimism on the country’s economic outlook. As a result, the confusion caused by government’s ad hoc interventionist policies on the economy was left unexplored.

In comparison, the 84 stories the private Press carried on the issue during the week were, like the holiday reports, forthright on Zimbabwe’s economic decline and its causes. Of these, 64 were in private papers and 20 in the private electronic media.

The media failed to provide their audiences with contemporary reports of the junior doctors’ strike, which began before Christmas.

The private media belatedly covered the development (which the private online agency, New Zimbabwe.com reported [27/12] as having started on December 21 last year) several days later. ZBC was even more neglectful. It only started reporting the strike two weeks later (Radio Zimbabwe 5/1, 8pm and ZTV & Spot FM 8/1, 8pm).

Even then, its coverage was in the context of official responses to the industrial action and contained no effort to provide their audiences with any informed analysis of the stand-off.

ZTV (8/1, 8pm), for example, simplistically dismissed the doctors’ strike, saying: “It has become traditional for doctors to go on strike at the beginning and end of each and every year”, without investigating why government had failed to permanently address the doctors’ grievances. Otherwise, the official media – despite trying to assess the human cost of the strike - narrowly projected the doctors as selfish and inconsiderate.

For instance, they neither viewed their strike as symptomatic of the ailing health sector nor linked it to worsening economic conditions that have triggered labour unrest in other sectors of the economy.

In fact, The Sunday Mail (7/1) tried to shield government’s culpability by deceitfully attributing the doctors’ concerns over poor working conditions and inadequate drugs and equipment to the “economic sanctions the West imposed on Zimbabwe”. Such professional dishonesty was also apparent in the manner in which the official Press handled the strike by ZESA employees over low salaries. ZBC completely ignored the matter.

The Herald (5/1), for example, merely reported that the power utility workers had gone on strike, without viewing their demand for over 1000% salary hike as a reflection of the extent to which economic decline has eroded workers’ salaries.

It was against this background that the paper (10/1) reported the failure by the Zimbabwe Schools Examination Council to meet the examinations marking deadline due to “low turnout by markers owing to poor payment rates” and the exodus of teachers to neighbouring countries (The Herald and Chronicle, 9/1) without reference to the economic hardships faced by Zimbabwe’s dwindling workforce.

The pattern remained unbroken in ZBC’s coverage of the strike by Gwanda municipal workers (Spot FM 10/1, 8pm and ZTV 13/1, 8pm).

The government media’s inadequate coverage of the subject was mirrored by their narrow sourcing pattern in the week as exemplified by ZBC (See Fig 1).

Despite their belated coverage, the private media reports on the doctors’ strike were generally more informative and viewed the matter in the context of the collapse in the country’s health delivery system.

They also examined the strike’s impact on patients and highlighted the doctors’ grievances. For example, the Zimbabwe Independent (12/1) quoted doctors blaming government for the crisis, arguing that their wage demands were “realistic” because their current basic salary was “equivalent to two crates of beer…”

Earlier, The Financial Gazette (11/1) noted that while government described the doctors’ action as illegal, “no arrests, dismissals or suspensions have been reported” since the strike began, adding that the stalemate between the authorities and doctors would “prolong the suffering of patients”.

The Daily Mirror (8/1 & 12/1) revealed that the situation could worsen as senior doctors, nurses and paramedics, who were still manning the hospitals, had joined the strike also demanding “better working conditions and competitive salaries”.

The paper, and indeed other private media, linked the industrial action to the country’s economic woes and to the outbreak of several other strikes, which observers projected could trigger mass demonstrations against government.

Studio 7 (9/1) also reported on threats by teachers that they “might go on strike” if they do not get an 800% salary rise, a 1,500% increment in transport allowances and a 1,000% increase in housing allowances.

The critical manner in which the private media handled the topic was reflected in its wide use of alternative voices as shown in the private electronic media’s sourcing pattern in the week. See Fig 2.

b. Price increases and inflation

THE government media failed to coherently discuss the sharp increases in commodity and service charges that characterised the Christmas holidays and the beginning of 2007 in the context of government’s policies.

The price hikes included that of bread, school fees and uniforms, and bus fares. The news of the increases came as Spot FM (22/12,8pm) reported new figures from the Consumer Council of Zimbabwe (CCZ) that December’s consumer basket had increased to $246,000 up from $208,000 in November. Reports of declining fertilizer production also featured, in which ZimPhos, was said to be operating at 50%, and Windmill at 10% of their capacities (ZTV, 24/12,8pm).

Despite extensively highlighting these indicators of economic decline in 96 stories (ZBC [74] and the official papers [22]) during the holiday period, the government media avoided carrying informative analysis of the serious nature of these problems, nor did they attempt to identify their root causes.

Instead, the stories generally regurgitated official threats against businesses that raised their prices, even in instances where they did so with government approval.

Consequently, the confusion surrounding government’s price control regime and its adverse effects on the economy was unexplored.

For example, The Sunday Mail (31/12) passively reported some parents calling on government to intervene in the pricing of school uniforms without discussing the prudence of such a move. Instead, the paper and The Sunday News (7/1) continued to report passively on calls for price controls in the education sector.

However, The Herald (9/1) argued otherwise by noting that “schools are not spared from inflation”, adding that while it was important to “protect parents against unreasonable fee hikes, it is also vital to ensure that schools remain viable”.

But The Sunday Mail (14/11) did not relent. It continued sowing seeds of confusion by failing to reconcile government’s approval of a 1 000% increase in rates in Chitungwiza to reports in The Herald (4 & 9/11) and Spot FM (8/1, 8pm) featuring the Estate Agency Council and Local Government Minister Ignatius Chombo warning landlords against “illegally” charging “exorbitant rentals”.

Earlier, The Herald (27/12 & 5/1) also did nothing to clarify government price control policies when it allowed the authorities to confuse the public on its position over commuter omnibus fare increases. The paper, for example, simply quoted the authorities describing the hikes as “illegal” and threatening to “withdraw permits of urban omnibus operators flouting government gazetted prices” without pointing out that it was actually government that had sanctioned the fares.

In fact, the official media tried to divert attention from government’s failure to turn around the economy with unsubstantiated official optimism that 2007 would be better.

For example, ZTV (10/1, 8pm) merely cited unnamed analysts giving qualified optimism that “the inflation rate of between 500% to 600% prediction by fiscal authorities is attainable”. Neither did it explore their calls “for policy interventions in controlling money supply growth…” and the need to “stimulate Foreign Direct Investment as well as resuscitate foreign currency reserves.” Nor did they investigate the cause of the excessive money supply or how it could be controlled.

However, the next day ZTV (11/1, 8pm) quoted the public in Harare saying they were “losing hope” that inflation, currently running at 1 281%, “would decline this year considering that prices of basic commodities are now rising haphazardly yet their salaries remain stagnant”.

The same report cited business strategist Chester Mhende questioning the authorities’ methods of calculating the rate of inflation. He contended that they were using “wrong ingredients” such as the controlled official foreign exchange rate instead of the parallel market rate where businesses obtain hard currency. Thus, he added, the real rate of inflation “is far higher than what is being reported...”

The Herald (11/1) buried news of the record rate of inflation and the sharp increase in the monthly cost of living to its business section.

In contrast, the private media reported candidly on Zimbabwe’s economic crisis and quoted economists and other commentators predicting a bleak 2007 unless government listened to advice and implemented effective turnaround strategies.

For example, The Financial Gazette (11/1) reported analysts interpreting the rise in inflation as indicative of government’s “failure to slow an economic decline that is breeding conditions for unrest,” while the online Zimbabwe Times (6/1) cited economist John Robertson forecasting inflation to hit 4,000 percent “if government fails to adhere to advice offered to it by the IMF”.

Similar views were echoed in The Standard (14/1).

Earlier, Studio 7 (28/12) forecast that the spate of price hikes in goods and services in almost every sector of the Zimbabwean economy was likely to throw January’s salary adjustments into disarray. There was no so such analysis in the government media.

The difference in the manner in which the government and private media tackled the economy was reflected by their sourcing patterns.

For instance, although the official papers’ sourcing appeared diverse (See Fig 3), most of those outside government were quoted either endorsing government policies or calling on the authorities to enforce price controls.

2007-01-18T16:21:00.000+02:00

ZimJournalists Arise Is Back

Happy New To All. We hope you have had a restful if not prosperous new year’s break. Though most journalists have been slogging on without a break as we are in the “essential” services category.

The year 2006 ended on a shocking note when President Mugabe unveiled plans to stay put until 2010.

The journalism fraternity lost chairman of the Zimbabwe Freelance Association Joe Kwaramba and also veteran journalist Farai Makotsi.

Just as journos wiped their tears to soldier on, two very distressing news to the fraternity filtered in.

We discovered that when Trevor Ncube’s passport was briefly confisticated in 2005, the malicious Zimbabwean government discovered that Trevor’s dad is Zambian. Now the media mogul is involved in a court dispute with the government. Although so far Trevor has refused to talk, speculation has been fueled that this may be used to close down his newspapers. However the Media Information Council, Tafa Mahoso says this will not be the case. Well, we will just have to wait and see.

Just before we could say “Zimbabwe Journalists Arise” our very creative government has come in with new laws on the registration of journalists.
According to the Herald ,mass media services and news agencies are required to to cough out

$600 000, this entails an application fee of $100 000 and a registration fee of
$500 000.

A Zimbabwean journalist working for a local media house will pay $10 000
application fee and $15 000 accreditation fee, while a local freelance
journalist will pay an application fee of $15 000 and an accreditation fee
of $20 000.

The late renewal of accreditation will attract a penalty of $10 000 per day,
$100 000 per day for late renewal of registration and $25 000 for a lost
accreditation card.

A local journalist working for a foreign media would pay an application fee
of US$200 and an accreditation fee of US$1 000.

Application for a temporary accreditation for a foreign journalist will cost
US$100 while accreditation would cost US$500.

Application for permission to operate a representative office of foreign
mass media service or news agency would attract an application fee of US$2
000 and a US$10 000 fee for permission to operate.

The fees were gazetted under the Access to Information and Protection of
Privacy (Registration, Accreditation and Levy) (Amendment) Regulations, 2006
(No.3) published in last Friday's Government Gazette.

Meanwhile for those who still buy the Herald newspaper, its price has gone up. The Herald is now $1 000
The Sunday Mail $1 500
Chronicle $1 000
Sunday News $1 000
Manica Post $1 000
Kwayedza $500
Umthunywa $500
New Farmer $1 000
Zimbabwean Travel $1 500
Trends $1 500

Just before we said journalist, the most “scandalous “ thing happened from within our own circles. A shadowy character, whose sanity is questionable, wrote a poison letter through a dubious news website saying most unprintable stuff about fellow journalists. This was met with deafening silence from our so-called journalism organizations. Without having to demean ourselves to the low-level below the belt journalism practiced by this nut-case, we deplore such reckless defamatory and unsubstantive type of journalism.

Reserve Bank governor is also threatening to sue the Standard over a story over his Mercedes Benz story.

Not a very good start for journalists, but we hope that as the year progresses, things will shape up. We are back after a restful holiday to tackle Zimbabwean journalism issues with zest.

Also we will not be running on a daily basis like we did last year as we prepare for the launch of our new product.

Thank you for your support.

2006-12-28T19:29:00.000+02:00

New Year'S Message From Daniel Molokele

Happy new year to you all.

I wish you a very successful 2007!

Please keep up the good work.

2006-12-28T19:27:00.000+02:00

Festive Season Message From Mike Davies

And a happy festive season to you as well

More power to your pens (well, to your keyboards!)

regards

Mike Davies

2006-12-28T19:25:00.000+02:00

PRESIDENT TSVANGIRAI’S CHRISTMAS AND NEW YEAR MESSAGE TO THE PEOPLE OF ZIMBABWE.

As we draw a close to what has been for many a very miserable year it gives me great pleasure to predict a glimmer of hope in an otherwise even more
murky prediction for 2007. I am aware that the year 2006, like the previous seven years, was particularly difficult. But you remained resolute in the struggle to express yourselves out of the national crisis. We endured long queues for basic commodities; suffered the indignity of shortages of transport, electricity and fuel; sacrificed our entire savings to enable children to attend schools and witnessed the loss of a loved one through HIV/Aids.

We all know that since independence in 1980, and in particular the last seven years, we have been subjected to the most trying circumstances. Many are without food. We can’t afford to send our children to schools. Hospitals have been turned into avenues of death. An HIV/Aids pandemic is causing havoc, making Zimbabwe a nation with the highest number of orphans in the world.

The challenge facing us today is to devise an effective mechanism to save Zimbabwe from further haemorrhage. Wherever we are, let us commit ourselves in earnest to saving our nation. What can we do individually and collectively to advance the struggle for change, for a new beginning, and for a new Zimbabwe?

As we approach 2007, let us look back and use our experiences to help the people to help themselves and to determine their own destiny, against the numerous odds imposed by Robert Mugabe and the Zanu PF dictatorship. Safeguarding our freedom depends on what we are prepared to do, at home and in the Diaspora.

It is quite obvious that we are in for a rough ride into 2007, especially when faced with the consequences of a Zanu PF defend-power project, imposed onto the people after the February 2000 referendum and the June 2000 parliamentary election.

The brutal assault onto the people; declaration of war against the people; the flagrant display of dishonesty, the skewed policies and the propaganda we have been subjected to over the last seven years have hit us hard. Only the dishonest and those politically connected to Zanu PF are surviving the onslaught.
Southern Africa faces a major challenge in 2010. We are hosting the World Cup. International attention shall thus be focused on all of us as a region as we receive visitors, international business and attend to the needs of millions of soccer followers. We cannot afford to be enmeshed in the political emotions associated with elections at a time when the entire focus of humanity shall be on the SADC region through sport.

Fellow Zimbabweans, it is clear that Robert Mugabe and the ruling Zanu PF elite have elevated themselves to the position of super-patriots and decided to extend their rule against the national sentiment. Mugabe and Zanu PF rig elections; usurp state institutions for political expediency; beat up Zimbabweans who disagree with the style of governance and destroy a country full of promise.

The decision to extend Mugabe’s term of office, already contested after the 2002 Presidential election, is major slap in the face for all Zimbabweans. We are in a serious dilemma as we have experienced and continue to live with an unprecedented economic meltdown and political uncertainty, all authored by Mugabe and his cronies.

We desire a normal society where decisions that affect the entire nation cannot be a preserve of a political party. All Zimbabweans must discuss and agree on the efficacy of any proposal whose political implications affect the nation at large. Zanu PF has no right to impose its will on all of us.

You are aware that I challenged Mugabe’s legitimacy in 2002 following your mandate. Despite his refusal to open up institutions of state to resolve pertinent concerns arising from the challenge, I wish to thank Zimbabweans for remaining steadfast and committed to the resolution of the national crisis. What Mugabe and Zanu PF have now done is the final straw that breaks the camel’s back. We cannot continue to watch Mugabe and his cronies play dangerous games with our lives.

The decision to extend Mugabe’s already controversial tenure shall be resisted. Together with our civil society partners and all democratic forces, we pledge to provide the necessary leadership to deal with this tyranny. We are not going to let this affront on the people’s destiny go unchallenged. We shall consult you and follow your guidance in this crucial matter.

As we enter in one of our bleakest festive seasons and into the New Year, may I assure you of my unwavering commitment to continue the fight for a lasting resolution of the national crisis? What came out of the Zanu PF conference is a major blow to Zimbabwe’s quest for a new beginning and to an end to uncertainty around Zimbabwe’s future.

Morgan Tsvangirai

PRESIDENT.

2006-12-28T19:19:00.000+02:00

Message From Our Collegueas At Zimbabwe Journalists.Com

Hi guys

Thanks for writing. You are doing a great job, keep on
keeping on. Don't get distracted by cheap talk. - the most important thing is to push the Zimbabwean
story so that it remains on the minds of the people who matter.

Many thanks.

Best

Edited

2006-12-22T19:24:00.000+02:00

End Of Year Message From ZimJournalists Arise

ZIMJOURNALISTS ARISE WOULD LIKE TO TAKE THIS OPPORTUNITY TO THANK OUR READERS. We started running the blog on August 28 and we have made a number of friends who we hope we will keep in the New Year. Although we might have stepped on a few toes in our short life, such is journalism especially objective journalism. A lecturer at the Harare Polytechnic would often say a response from reader/listener whether good or bad is good because it means there are listening or reading.

Sadly the year ended on a bad note. Besides the usual deteriorating standard of living, Zimbabweans woke up one day to hear that President Mugabe is considering extending his term until 2010. This sent Zimbabweans at home and abroad into despair as people contemplate another four years under his misgovernance. For journalists it means more years of media repression and less professional opportunities. For those squatting around the globe its is four more years of despair and telephone relationships.

However Zimbabwean’s world renowned resilience has kept us going and it will be business as usual next year. The blog hopes to launch a better and new product when it comes back on cyberspace mid January next year. So watch press for details.

It is also unfortunate that the year comes to close with the death of veteran journalists Farai Makotsi and President of the Zimbabwe Freelance Journalist Association Joe Kwaramba. This come at a time when most journalists have been reduced freelancers or forced into other profession just to keep body and soul together. These losses although great should not deter journalists and we hope that the next year, will see more fearless and polished journalism.

So from all of us at ZimJournalists Arise Merry Christmas and a Happy New Year.

2006-12-15T23:10:00.000+02:00

Zimbabwe Vigil Intensifies Campaign Against Mugabe Visit To France

The EU is meeting in Feburary next year, to decide on the renewal of sanctions against President Mugabe and his cabinet. Rumour around town is that some European countries want to slacken the sanctions. God Forbid.

Help stop the crumbling of European Union (EU) targeted sanctions against Mugabe and his cronies EU targeted sanctions against the Mugabe regime are due to be renewed in February 2007. There are
worrying signs that these are crumbling. We have been advised that the French government (particularly President Chirac) is considering inviting Mugabe to a France / Africa summit in
Cannes in February and that Portugal which takes over the EU Presidency in July wants to invite Mugabe to an AU / EU summit to be held during its Presidency. The Vigil has already sent a letter to the French Embassy asking the new French Ambassador to Zimbabwe to do all he can to stop the French invitation (Vigil epresentatives briefed the Ambassador in September before he took up his appointment). The Vigil has also contacted trade unions in this country asking them to involve French trade unionists in the campaign to prevent Mugabe from being invited. The TUC recently held a protest outside the Zimbabwe Embassy in solidarity with
Zimbabwean trade unionists after they were so brutally treated for trying to hold a peaceful protest. ACTSA (Action for Southern Africa, the successor to the Anti-Apartheid Movement) is asking
people to lobby their MPs / MEPs to insist that EU
targeted sanction are renewed. Please help by: Lobbying President Chirac of France: attached is a suggested letter to him in French and English - please print the version you prefer to send, insert your address, the date and your signature and post it to President Chirac. We have signed it 'Concerned Zimbabwean' please adapt this
as appropriate to yourself.

2006-12-15T23:01:00.000+02:00

This Week's Zimbabwe Media Headlines

Chombo Sues FinGaz For $300 million, But Is Exposed In Yet Another Scandal
This week was an eventful week in the Zimbabwean Media. A dispute seems to be growing between Local Authorities Minister Ignatius Chombo, who is suing the Financial Gazette for $300 million for publishing stories about him in an alleged ZUPCO corruption scandal. The Fingaz then came up with another story entitled “Not Again Minister” implicating him in a CBZ scandal. Observers say this dispute could mirror bad blood between Chombo and Reserve Bank Governor Gideion Gono. Observer add that Gono is said to be considerably be involved with the Financial Gazette, and owing to the fact that the details are emanating from the Reserve Bank and CBZ, maybe something is going on??? Meanwhile daggers have been drawn, with Jonathan Moyo against Dumiso Dabengwa and John Nkomo, while Emmerson Mnangwagwa is suing the Speaker of Parliament For defamation. Now it will be interesting for journo’s to attend these court hearings as these guys tend to sing like larks during testimonies.

Here’s an Excerpt From This Week’s Fingaz
Police are investigating the use to which Local Government Minister Ignatius Chombo put $14 billion worth of farm loans obtained from the central bank.
The focus of interest for the Criminal Investigations Department (Serious Fraud) is Chombo’s application, on October 1, 2005, for a $14 billion (old currency) loan from the RBZ. The loan is said to have been availed under the “Other Crops and Livestock Facility” and was disbursed through CBZ Bank.

Charamba Scuttles Muradzikwa ‘s Plans Of New Appoinments

Lydia Mavengere and Ishmael Kadungure who were to be appointed general managers for TV and Radio services, apparently got the thumbs down from presidential WordSmith George Charamba, reports NewZimbabwe.com
It seems Muradzikwa is having to go back to the drawing board again. Some of those affected are Robson Mhandu and Tazzen Mandizvidza.

Channel 4 News Crew Deported From Zimbabwe

Now talk about real DRAMA, word around town is that business mogul Nicholas van Hoogstraten's, blew the whistle on Channel Four journalists, who he himself had facilitated to bring in into Zimbabwe. Now a lot of theories and versions are flying around town. The official line says the CIO came across a script, in the four-man news crew’s car. Why the CIO were paying them such close attention is not clear. Another version doing the rounds in Harare’s watering holes is that it was Van Hoogstaten himself who locked the television crew in their rooms and alerted the police. The state-run Herald newspaper alleges that the four man crew’s unceremonious exit was facilitated by the British, who facilitated their escape, through an unnamed neighbouring country. The Herald allege the British journa's were compiling stories that would tarnish(further)the country’s image in preparation for a renwal of EU Sanctions.

2006-12-15T22:59:00.000+02:00

Swazi Media Slammed For Neglecting Real Issues

Despite Swaziland's humanitarian crisis, local newspapers are largely ignoring issues such as poverty, food shortages and HIV/AIDS in favour of reports about crime and bickering amongst political personalities, according to The Media Institute of Southern Africa (MISA).

MISA's Media Monitoring Project report, 'What makes news, and is the news professionally reported?', funded by the Open Society Initiative for Southern Africa (OSISA) and released on Wednesday, also found that news stories were largely restricted to covering one area of the country, and poorly reflected gender diversity.

"It is very hard for us to get a story about what is really happening to the Swazi people on the ground in the local media - they just want to report political gossip; the MISA report reflects that," said Thandi Ndwandwe, a public relations officer for a food aid NGO based in the central commercial town of Manzini.

POLITICS NOT POVERTY

The report surveyed news content during a two-week period in October 2006 and found that national politics dominated content in the country's two daily newspapers, the independent Times of Swaziland and the Swazi Observer, owned by the royal conglomerate, Tibiyo TakaNgwane.

Most of the stories - 26 percent - covered local politics. The second largest category was crime, the subject of 18 percent of stories. Despite Swaziland having the highest HIV prevalence rate worldwide - about 33.4 percent of sexually active adults are infected - just one percent of stories were devoted to HIV/AIDS.

Orphans and vulnerable children (OVC) will constitute 10 percent of the population by 2010, according to the United Nations Children's Fund (UNICEF), and their welfare is an escalating crisis in the impoverished country. Nonetheless, OVC and children merited only one percent of stories in the Swazi press.

Judging by local newspaper coverage, Swazis seem to have little interest in the world around them. During the two-week period reviewed, "There were just five stories relating to events outside Swaziland - four from other African countries and one from outside Africa," the report commented. International news was relegated to page seven in both papers, a "world news ghetto", in the words of one Swazi reporter.

STAYING CLOSE TO HOME

The offices of both newspapers are located in the capital, Mbabane, in the northern Hhohho Region, and more than half of all news stories in the two publications originated there.

Humanitarian NGOs have tried different strategies to lure reporters to Swaziland's three other regions, particularly the drought-stricken eastern Lubombo Region and the AIDS-ravished southern Shiselweni Region, to give humanitarian issues a higher profile in the national consciousness: only 5 percent of news stories originated in the Shiselweni Region, and 4 percent from Lubombo Region.

"We try to organise tours to bring journalists to the story. This year we mounted an award for best reporter on a humanitarian story," said Abdoulaye Balde, Country Representative for the UN World Food Programme.

The award would have given the winner an all-expenses paid course in higher journalism, in Johannesburg, South Africa, but so few reporters submitted 'humanitarian' stories - only four local journalists entered the competition - that the awards were scaled back.

SENSATIONALIST GOSSIP

Swazi journalism will have to rise above its emphasis on gossip about local personalities - even political stories usually concern attacks by one politician against another, or a politician's scandalous behaviour, rather than substantive reportage on political or governance issues.

The study found that most stories (51 percent) only had one source, breaking a basic rule of journalism that requires at least two sources to ensure balance and accuracy, and safeguard against bias.

MISA deemed 13 articles "unfit reporting", in which "almost half of the violations occurred in stories about child abuse or gender-based violence, where the report failed to protect the victim, and/or trivialised the event".

A notorious example was a news story about an infant found next to the body of his murdered mother, having apparently lain next to the corpse for hours. However, what the reporter and his editors found most fascinating was that during a medical check-up, the baby was found to be a hermaphrodite, possessing both male and female sex organs. This became the focus of the story, to the ire of child welfare groups, who felt the coverage was a sensationalistic violation of the child's privacy.

Women's rights groups complained of poor reporting on gender-based violence, and this was substantiated by the report, which found "the stories that violated principle clearly trivialised child abuse or gender-based violence. In the case of gender-based violence, the stories were often depicted as lovers' tiffs, with no acknowledgement of the criminal nature of the abuse. It was common for the stories to be told through the eyes of the perpetrator, in such a way as to portray him as a victim, without mentioning the illegality of the alleged actions."

The report also found a corresponding absence of women's voices in news reports - female sources were absent in most news stories under review - and in news reporting and editing.

THE CHALLENGE AHEAD

Rudolph Maziya, National Director of the Alliance of Mayors and Municipal Leaders on HIV/AIDS in Africa, an NGO coordinating the response of urban leaders to the pandemic in their towns, felt reporting on HIV/AIDS suffered from subject fatigue. "Both the media and health NGOs have to find creative new ways to tell the story. AIDS has been in Swaziland for almost 20 years, and the story is the same, and will be for some time."

To energise press reporting on humanitarian issues, Maziya felt that media personnel should recognise that they were personally affected. "The media can come to realise that they are not just neutral reporters, but participants. The media houses will come up with their own AIDS programmes, so that when we call reporters to press conferences, they will already be involved as AIDS activists."

2006-12-14T21:45:00.000+02:00

Notice To Readers

Zim Journalists Arise, would like to inform our readers that our posts will not be circulated on a regular basis, until further notice. We will be however posting any major developments, as they happen, while we work to revamp our blog, to ensure readers have a better product in the New Year.

Thank You
ZimJournalists Arise

2006-12-13T00:11:00.000+02:00

Mass StayAway Tomorrow???

ZimJournalists Arise understands there have been e-mails and sms messages together with fliers circulating in Harare and Bulawayo. Our sources tell us that an e-mail from savezimbabwe06@yahoo.com is doing the rounds urging people not to go to work today. Fliers are slo being distributed in Harare. No-one has claimed credit for this. The Save Zimbabwe Campaign has not been available to confirm or deny responsibility for this. Other sources within civic society say it is the MDC led by Morgan Tsvangirai that is behind this, but party official deny this. But whatever the real story, we need to keep our eyes open today to see what happens.

2006-12-13T00:07:00.000+02:00

WOZA To Roll Out Countrywide Protests
WOZA DECLARE A VICTORY AFTER SUCCESSFULLY LAUNCHING
THE PEOPLES’S CHARTER AT PARLIAMENT IN HARARE

MORE than 800 members of Women Of Zimbabwe Arise and
Men Of Zimbabwe Arise (WOZA/MOZA) from all over
Zimbabwe marched yesterday to Parliament in Harare to
launch the Peoples’ Charter.
Two groups started at different locations in central
Harare, converging on Parliament at the same time.
Upon arriving at Parliament, the two groups were met
by riot police and arrested.

Police held the group of approximately 350 people, who
were sitting peacefully, for more than an hour in
front of the Parliament buildings before unexpectedly
releasing them. Several people, including
parliamentarians, came out
of the Parliament Buildings to observe the proceedings
and to read the WOZA placards and many took copies of
the Peoples’ Charter.

After the brutality with which police attacked WOZA
members in Bulawayo two weeks ago, members had braced
themselves for a similar
response. They were surprised however upon being told
that they could go back to their homes after being
warned that they were demonstrating illegally and that
they were not allowed to walk or even sit like they
were doing! What was even more surprising was that
Jenni Williams, WOZA’s National Coordinator, was
invited to address the group before they dispersed.

At one stage a senior police officer asked the group
who the leaders were and when he was told everyone is
a
leader, he then took five members from the main group,
including two men and an elderly woman on crutches,
loading them onto the back of a police vehicle and
taking down their names. A Human Rights lawyer who was
on site questioned this and some time later the five
were made to rejoin the rest of the group.

The response to the Peoples’ Charter from Zimbabweans
all over the world has been overwhelming and today was
no different. Pedestrians in downtown Harare rushed to
receive copies of the Charter from the marching groups
and in fact, the only WOZA items that remain in
custody tonight is the Peoples’ Charter and placards
including those calling for 2008 Parliamentary and
Presidential elections.

The reaction of the Zimbabwe Republic Police today was
a victory for WOZA’s non-violent strategy and for the
power of social justice. The WOZA leadership would
like to commend the Zimbabwe Republic Police for
showing that they are human beings also requiring
social justice in their lives. However WOZA would also
like to warn them that if they are turning over a new
leaf it should be apparent every day, not only today
but also in the future.

Having successfully launched the Charter in Harare and
Bulawayo, WOZA is now planning to roll out launch
demonstrations across the country.

2006-12-11T21:16:00.000+02:00

Police Worst Perpetrators Of Rights Abuses

The youth militia or the green bombers, as they are infamously referred to, are not only paid ridicously high salaries, but have been provided an opportunity by the RBZ to make a bit of money on the side. South African based ZimOline recently reported that the army after convenietly chasing away diamond miners in Marange, are now mining the mineral themselves.

Yesterday Zimbabwe Human Rights NGO Forum launched a report called

Who Will Guard The Guards

Zimbabwe's police are major perpetrators of human rights abuses, according to data collected by the Human Rights NGO Forum.

The police have been named as torturers and police premises as places of torture in hundreds of cases recorded by the forum.

Senior police officers often carry out torture, according to the report. Since 2000 officers of the rank of sergeant or above have been named as perpetrating torture in 59 cases. This refutes government excuses that occasional abuses are carried out a few 'over-zealous' low-level officers.

The politicised police force has often refused the protection of the law to those identified as members of the opposition or otherwise hostile to Zanu-PF. For these people the law enforcement agencies have become "instruments of violence against them rather than an institution that offers them protection," states the report.

The police and other perpetrators of abuses often operate with impunity, not facing any legal responsibility for their actions. This impunity allows abuses to continue.

A total of 20,624 violations of human rights have been recorded in Zimbabwe since July, 2001, when the Human Rights Forum began publishing statistics. These are the number of cases, and in many there are several people abused, so the number of individuals suffering abuse could be considerably higher. Since 2004, the number of total abuses has increased, from 2,656 in 2004, to 4,170 in 2005 and 5,063 in 2006. The 2006 figures do not include cases from October, November or December, so the year-end total may well reach 7,000, according to the report.

"Most disturbing is that in 2006 torture has again increased markedly,” states the report which also notes an "enormous increases in unlawful arrest and detention and interference with freedoms, which largely correspond to the promulgation and use of the Public Order and Security Act (Posa)”.

The forum has recorded more than 3,200 cases of torture since 2001. Reported cases of torture increased from 136 in 2005 to 335 in 2006. Again, the 2006 figure does not include incidents for October, November and December.

Abuses by police and other state agents (army and CIO) have increased in 2006. "The involvement of state agents in the alleged perpetration of gross human rights violations has greatly increased, with the torture of members of the Zimbabwe Congress of Trade Unions (ZCTU) being perhaps the most egregious recent example," states the report.

Despite numerous complaints and reports, by the Human Rights Forum and other organizations, the government has taken "little remedial or preventative action. The Zimbabwe Republic Police continue to be involved in human rights violations, and, if anything, the abuses have become worse in the past three years."

The forum report urges the government of Zimbabwe to fulfill its constitutional obligations to investigate allegations of abuses. It also calls on the United Nations, the African Union and the Southern African Development Community to investigate the allegations of torture by police and other human rights violations.
Edited

2006-12-11T21:06:00.000+02:00

Letter From Mike Davies
Chairman of Combined Harare Residents Association

Please do not become a forwarding service! Anyone with a genuine interest in Zimbabwe will already subscribe to MMPZ and SWRadioAfrica and ZimbabweSituation so this just clutters up our mail boxes. You could usefully compile a list of such services however and distribute it to members.

thanks for the original pieces and blogs though

Response From ZimJournalists Arise

Unfortunately, we are unable to generate original material, as we do not have adequate resources at the moment to do so. However we are working on this and hope we will be able to do so in the new year.

However we will reiterate that we are not a news website, but primarily exist to serve the interests of Zimbabwean journalists. That is why you will come across a lot of press statements, training programs for journalists etc. We occasionally throw in the odd story, if we feel it is of national interest and has a bearing on the work of Zimbabwean journalists, such as Mugabe staying on until 2010. We also occassionally carry stories we think are important but donot make the headlines.

However we have taken note of your concerns and owing to the overwhelming support the blog is receiving we are working day and night on a better product that will facilitate the free flow of information, a product that will facilitate communication between journalists and newsmakers.

Our emphasize is also on human rights and democracy reporting. We also have a “soft spot” for gender and Aids issues.
Thank you for your readership and suggestions.

2006-12-11T21:00:00.000+02:00

Appeal For Journo's To Cover Impact Of Passport Shortage

Dear Zimbabwean Journalists
I read with profound joy and sdaness the article "Mangwana Gives Corruption A Thumbs Up". My anger was the reaction to the fact that the Zimbabwean government is an oligarchy of criminals with no conscience at all. It is crucial to expose such issues because as the Anti-corruption minister the fight against corruption should begin with Mangwana.

However, my fellow countrymen, i implore you to urgently bring to light the whole truth about the passport saga in Zimbabwe. In an age where human beings are more mobile due to improved transportation systems and the power of globalisation, denying one of the right to a passport is an unforgivable state crime against its own citizens and a highest form of injustice. Whether its political or economic is besides the point, the fact is we dont need any explanation about not issuing passports. It is as bad as explaining murder. Many students want to travel abroad for further studies, have secured places and scholarships only to be denied by failure to acquire a passport. A passport is now more difficult to obtain than a degree in Zimbabwe.
Edited

Farai Maguwu
CODEGO National Co-ordinator

2006-12-11T20:57:00.000+02:00

SW Radio Launches SMS Campaign
Yesterday Zimjournalists Arise circulated a peice on SW Radio launching Podcasting. We would like to point out that the campaign is more of an SMS camapign than podcasting.
Thank you.

2006-12-11T04:05:00.000+02:00

SW Radio Africa Launches SMS Campaign
By ZimJournalists Arise

UK based short-wave radio station SW Radio Africa, last Friday launched its
SMS campaign, which entails sending news back into Zimbabwe via text thru mobile phones.

Said Station Chief Gerry Jackson "The podcasting has begun but is not fully functional as yet and is still being tested."

According to a note sent to ZimJournalists Arise, a friend of the station
tried an experiment and 70,000 people downloaded the files he put up.

Jackson adds that during the holiday period the campaign might be up and running and she will send us more information about it.

Meanwhile SW Radio is calling those who have friends in Zimbabwe who have mobiles
who would like to receive their news during the week to email their numbers to Gerry and they will be included in the mailing list

Said Jackson:"We're hoping this will catch on like wildfire and that everyone will forward the news. It has to obviously be very brief headlines, but if there is any breaking news we can sent it straight in."
"If you send any numbers it would help if you put it in the following format to save us time, added Jackson.

+26391234567, ie the plus sign and the country code.
So guys lets support our fellow journas and get those numbers rolling in.

P.S
Those interested can send their mobile numbers to Gerry@swradioafrica.com

2006-12-11T03:57:00.000+02:00

Media Repression Set To Continue As Mugabe Stays Up Til 2010
By ZimOnline

resident Robert Mugabe will not step down at the expiry of his term in 2008 but will rule for an additional two years after three more provincial committees of his ruling ZANU PF party resolved at the weekend to extend his term to 2010.

ZANU PF, which has enough parliamentary majority to amend Zimbabwe’s Constitution to enable Mugabe to continue in office, is pushing for a constitutional amendment to postpone a presidential election due in 2008 to 2010 so it could be held together with general elections for Parliament.

The ruling party says holding simultaneous presidential and parliamentary elections would cut on costs. But insiders say the move is more because of failure by bitterly opposed factions in the party to agree on a single candidate to succeed Mugabe, who will have done 30 years at the helm if he stays on until 2010.

“Holding separate elections is too expensive and we have resolved as a province that presidential, parliamentary and even senatorial elections be held at the same time,” ZANU PF spokesman for Bulawayo province Effort Nkomo said at the weekend after the provincial leadership agreed to ask a party national conference later this week to extend Mugabe’s term.

Party provincial leaders in Matabeleland South and North provinces also agreed at the weekend to support extending Mugabe’s term, bringing the number of provinces backing the call to keep the 82-year old leader in office until 2010 to six out of a total of 10 provinces.

The provinces of Masvingo, Midlands and Manicaland had earlier indicated they would push the national conference that begins next Wednesday to extend Mugabe’s term – which is now a mere formality after the majority of provinces expressed their support for the proposal.

Mugabe - accused by critics of ruining Zimbabwe’s once prosperous economy through repression and mismanagement – has not publicly commented on the moves by his party to extend his rule.

The veteran President, among the few remaining of Africa’s old style big-men rulers, had never categorically stated that he would step down in 2008. But he had indicated in a May 2004 interview with British television that he would not seek re-election at the expiry of his current term.

Under Mugabe’s charge – he first came to power at the country’s independence from Britain in 1980 – Zimbabwe has declined from being a model economy to a classical African basket case, weighed down by an economic crisis that has spawned hyperinflation, severe food shortages, record unemployment and poverty. - ZimOnline

2006-12-11T03:53:00.000+02:00

World Newspaper Congress To Visit South Africa In 2007
bY I-JNET

For the first time, the world’s major newspaper industry group will hold its annual meeting in Africa. The Newspaper Association of South Africa recently won a bid to host the World Association of Newspapers (WAN) annual congress next year.

The groups say they expect more than 1,300 delegates for the event, planned for June 3 to 6, 2007, in Cape Town. Natasha Volans, general manager of the South African association, told the RAP 21 network that she hoped the conference would focus on issues specifically relevant to an African audience.

“The Newspaper Association of South Africa would like to see included on the agenda issues which are relevant to Africa,” she said. “I think some of the issues relevant to African editors are issues around reporting on race and gender, and possibly media diversity.”

This year’s WAN Newspaper Congress is scheduled for June 4 to 7 in Moscow, Russia. The main theme is the future of newspapers, including technological innovations, business models and digital media. Expected speakers include Russian President Vladimir Putin.

For more information contact WAN at contact_us@wan.asso.fr, or visit http://www.wan-press.org/article8702.html.

2006-12-09T01:16:00.000+02:00

Mangwana Gives Corruption A Thumbs Up

By Media Monitoring Project of Zimbabwe
During the week acting Information Minister Paul Mangwana repeated his predecessors’ claims that stories reflecting badly on government or the ruling party are fabrications by “some sections of the media”. The Herald (5/12) passively reported him denying that the ruling party was riddled with in-fighting in Masvingo saying such reports were a result of an “entrenched tendency to manufacture news” by journalists who were misinterpreting “differences of opinion as factionalism”.
He then provided a distorted perspective of the role the media should play in society, reiterating government’s own narrow view that journalists should be “patriotic and nationalistic” in the execution of their duty.

ZANU PF MP Walter Mzembi expanded on this wilful misconception of the media’s obligations saying they were “duty-bound to articulate the Zimbabwean story”, which “will never be complete without the portrayal of President Mugabe as a hero with the interests of his country at heart”. This dogmatic view found further expression in Mangwana’s criticism of the private media’s attempts to expose details of the alleged involvement of government officials in the Ziscosteel (Zisco) corruption scandal, which the authorities have tried to conceal. He dismissed the private media’s revelations, telling The Herald (25/11) that the media were “scoring cheap political points” by focussing on “red herring cases” such as “hotel bookings…whose dinner was paid for, who was given a ticket, which companies buy for officials who will be visiting them”. All these issues, he claimed, “do not help the country at all” but are meant to shift public attention from “the correct focus”, that is “instances of corruption by management.”
Such deceit went unchallenged.

For instance, the paper did not ask him why he believed the alleged pillaging of Zisco funds by government ministers on missions that were not related to the company was irrelevant and not newsworthy. Only the Zimbabwe Independent (1/12) subjected his dishonesty to scrutiny. It wondered if there will ever be “a probe into the issue” when Mangwana, who is also the anti-corruption minister, “describes pillaging of public funds and key leads into possibly deep-rooted corruption as non-issues”.

2. Unprofessional conduct
IN recent days the official media reinforced its reputation for being a source of unreliable information by a number of false reports, including “news” that a Chinese company was about to buy a majority shareholding in the financially-troubled steel-making giant, Zisco; that South Africa had relaxed its stringent visa requirements for Zimbabweans; and that private schools had “lost” their bid to increase school fees. Besides misrepresenting facts on these matters, they also censored stories that reflected badly on government or the ruling party, such as fresh reports of human rights violations during the week and breaking news about former Information Minister Jonathan Moyo’s defamation lawsuit.
Only those who accessed the private media had the privilege of getting accurate information about these issues.

a. Distortions and misrepresentations
As the week opened, The Herald and Chronicle (27/11) announced that the Metallurgical Corporation of China (MCC) had “put a US$3 billion bid for a 60 percent stake in Ziscosteel” following a “meeting held between the Government of Zimbabwe and MCC officials in October”. The paper quoted Zimbabwe’s Ambassador to China Christopher Mutsvangwa confirming the “investment deal” saying the Chinese company was “very serious about the bid” and was “ready to move in as soon as the deal is agreed to” by government. Spot FM (27/11, 8am) carried a similar report claiming the alleged takeover would restore Zisco status “as the biggest steel manufacturer in Africa south of the Sahara.”

However, the next day Reuters, in a story that appeared on ZWNews, reported MCC officials denying the claims saying the company had not bid for a majority stake in Zisco.
One of the unnamed officials told the agency: “There’s no such thing. We haven’t bid for it at all”. Although The Financial Gazette (30/11) also reported the MCC denying making moves for Zisco, it unprofessionally presented the report as their own and failed to acknowledge Reuters as the original source of the story. Despite the denial, the government media made no visible effort to correct its original story.

Such unprofessional journalistic conduct was also apparent in the manner in which they handled debate on South African visa requirements. For instance, although The Herald (29/11) reported the SA embassy refuting claims that its government had relaxed “stringent visa requirements for Zimbabweans”, it did not categorically explain that this was in response to misleading reports carried in the official media quoting Zimbabwe government officials stating that SA had agreed to waive the visa conditions for the time being. Instead, it merely attributed the distortion to SA Defence Minister Mosioua Lekota, whom it said, had told “reporters in Victoria Falls last week” that his country had “temporarily scrapped” the requirements. ZTV and Radio Zimbabwe simply ignored the SA government’s statement clarifying the matter.

Earlier, The Herald (28/11) continued to misrepresent the implications of last week’s ruling in a case in which the Association of Trust Schools (ATS) sought the court’s intervention to increase fees after government barred it from doing so.
Instead of openly informing its readers that the judgement on the matter was only temporary as Justice Antonia Guvava had ordered private schools to first “exhaust all…channels” available to them under the Education Act before seeking the court’s intervention, the paper maintained that the ATS had “lost” its case. It was such distortions that prompted Muchraker, the Zimbabwe Independent columnist to note that a “‘believe it at own risk’ caveat would help Herald readers”, adding that “luckily” for the paper “when such things happen (Media and Information Commission chairman) Tafataona Mahoso conveniently goes deaf and mute”.

b. Omissions and censorship
The official media also censored news stories or simply omitted important detail in the contemporary stories they did carry. Their coverage of the defamation case in which Moyo is suing senior ZANU PF officials John Nkomo and Dumiso Dabengwa for libel is a case in point. For example, while the Chronicle did report on the court proceedings, The Herald and ZBC simply suppressed the developments. Even then, the Chronicle censored detail that cast the ruling party in a bad light. For example, it (28-30/11) suffocated Nkomo’s evidence that attempts in 2004 by Moyo and other ZANU PF members to oust Vice-President Joseph Msika from the party’s leadership would have split the ruling party. This only appeared in the private media.
The Financial Gazette (30/11), for example, reported Nkomo as having told the court that the removal of Msika would have ended the “fragile unity achieved when the unity accord was signed in 1987” because “there could not be any unity without (him)”.

The government media also censored additional human rights violations during the week. Again these only featured in the private media, which carried 11 reports on the matter. Of these, five were new abuses while the rest were follow-up reports on previous rights violations. The incidents included the arrest and assault of civic activists and artists, the break-up of students’ meetings by the police, farm invasions and the use of the youth militia to enforce price controls. The Gazette revealed that it was due to such violations that the UN Special Rapporteur on Torture Manfred Nowak “could visit Zimbabwe in the new year” to assess the situation on the ground.

c. Poor news management
Apart from censoring and misrepresenting important stories, ZBC also displayed poor news management during the week. Its evening bulletins of November 28th epitomised the broadcaster’s dismal journalistic standards. For example, ZTV (28/11, 6pm) claimed that 150 Air Force of Zimbabwe officers were benefiting from a poultry project Vice-President Joice Mujuru had started in Manyame. However, an officer the station quoted complained that the project had stalled due to lack of chicks and stockfeed. In its 8pm bulletin, the station’s reporter Reuben Barwe used standard diplomatic etiquette to gloss over the country’s isolation. He deceitfully interpreted the normal presentation of credentials to President Mugabe by incoming French and Kenyan ambassadors to mean that Zimbabwe “still has many friends out there who recognise her strategic position on the African continent.”

That same evening, ZTV and Radio Zimbabwe passively reported Education Minister Aeneas Chigwedere announcing that as from January 2007 all schools would be required to teach both Shona and Ndebele. The stations did not ask how the schools were expected to implement the policy when – by the minister’s own admission – there was a lack of Ndebele teachers in Shona-speaking areas. Instead, the next morning ZTV falsely claimed that ATS chairman Jameson Timba had welcomed the minister’s decree “as a noble idea that promotes unity” when he actually opposed the policy saying it was virtually impossible to implement.

3. Economic fantasy
THE official media’s blind endorsement of government policies manifested itself in 104 stories they carried on the 2007 national Budget. Of these, 24 appeared in the government Press while ZBC aired 80. Almost all the stories passively presented Finance Minister Herbert Murerwa’s pronouncements as reflective of the authorities’ commitment to revive the country’s ailing economy and thereby ease Zimbabweans’ economic hardships. None of the reports reconciled his positive forecasts for economic growth with previous unrealistically optimistic projections. Neither did they link his predictions with the continued economic decline characterised by crippling foreign currency shortages, shrinking industrial productivity, rising unemployment and the galloping cost of living. Nor did they query how government would finance the huge budget deficit or discuss how the widening of tax bands would affect government’s revenue base.

For example, all ZBC stations (30/11, 8pm) hailed the budget as “people-oriented” and “aimed at, among other things, stabilising prices, enhancing economic growth and job creation” without explaining how. Instead, ZTV reporter Douglas Rinomhota simply claimed: “Year 2007 is being seen as a turning point in the country’s fortunes.” To promote the budget as generally popular, ZTV (30/11, 6pm) quoted four ZANU PF MPs unquestioningly endorsing it. Comments by MDC MP Innocent Gonese were then abruptly cut before he could sensibly express his views on Murerwa’s financial statement.

The government controlled papers adopted a similar slant. For example, The Herald and Chronicle (1/12) simplistically celebrated the increase in tax–free threshold from $20 000 to $100 000 saying “hard-pressed workers will now have reason to smile again” as “more money” had been injected “into their pockets”. Without fully discussing the new threshold in view of the hyperinflationary environment, The Herald (2/12) passively reported “analysts” as having hailed the budget claiming it would “pull the economy from the current murky waters, leading to a recovery path”.

The official media’s reluctance to question government policies resulted in them turning a blind eye to the negative effects of jailing business executives accused of increasing commodity prices without government approval (ZBC, 30/11, 8pm and The Herald and Chronicle 1/12). Neither did they link their 51 stories on symptoms of economic distress (ZBH [28] and official Press [23]) to government policies.
Although their sourcing patterns appeared diverse as shown in Figs 1 and 2, comments by those outside government were either drowned in these media’s celebratory tone or were used to blindly endorse Murerwa’s statement.

In contrast, the private media were unimpressed by the budget. Almost all their 40 stories on the subject (private papers [26] and private electronic media [14]) dismissed the minister’s positive projections as unrealistic, noting that he had not provided any solutions to the country’s myriad economic problems.
The Zimbabwe Independent (1/12), for example, viewed the budget as “a classic soap opera”, whose “episodic work of fiction” left “stakeholders in shock and awe, and…frightened of a gloomy future”. It noted that while Murerwa predicted some economic growth in 2007, the government had failed to meet almost all the targets he had set in last year’s Budget. The Sunday Mirror (3/12) agreed. It quoted economists describing the Budget as a “damp squib” saying the widening of tax bands would only provide temporary relief for workers because “the benefits will be eroded by inflation”. The Standard (3/12) and all the 12 stories the private electronic media carried on the matter echoed similar views. New Zimbabwe.com (1/12), for instance, dismissed the Budget, arguing that while Murerwa pinned his hopes of economic growth on increased agricultural productivity, he had allocated relatively less resources to the agricultural ministry, preferring to give a significant amount to state security.

It was in this context that MDC official Tendai Biti, in a statement carried by the agency (2/12), viewed the Budget as indicative of “the mediocrity, dishonesty and bankruptcy of ideas of the Zanu PF regime”, adding that the “economic crisis arresting Zimbabwe is structural and cannot be treated by cosmetic, populist (and) recycled measures”.

The private media’s critical approach was reflected by the private papers’ attempts to balance official comment with alternative views.
Edited.

2006-12-09T01:12:00.000+02:00

Politically Motivated Violence Against Women Escalates in Zimbabwe

Zimbabwe is in its 16 Days Against Gender Violence, but as expected the political and economic situation in the country has superseded the issue of gender. Elsewhere on our blog we have the latest MMPZ report. Even, it, seems to have forgotten to analyse media coverage of this very important event. However the Zimbabwe Human Rights NGO Forum has come out with a report marrying the two issues.
Violence against women in Zimbabwe, often politically motivated and perpetrated largely by supporters of the ruling Zanu-PF party, police and other state agents, has escalated over the past six turbulent years, the Zimbabwe Human Rights NGO said in a report released 8/12/2006.

Titled “A Woman’s Place is in the Home?’’ – Gender Based Violence and Opposition Politics in Zimbabwe, the 21-page report marks the annual 16 days of international protests about violence against women.
The Forum urged that the government be targeted during this year’s protests because its actions ranging from the 2005 campaign of forced urban evictions and demolitions which inflicted huge suffering on women in particular, to condoning rape and other politically motivated brutal sexual assaults. Another form of abuse is enforced cubinage of women and girls at Zanu-PF youth training camps or militia bases set up on farms seized from white owners in 2000-2002.
“There is ample evidence that human rights abuses against women in particular are prevalent in Zimbabwe, contradicting the government’s statements that these abuses are exaggerations made by organizations supported by the West,’’ said the report.
The worst instances of violence against women were in 2000-2002 when Zanu-PF’s hold on power was first seriously threatened. The assaults were motivated partly by a perception those women have lesser status in society and that they are the property of men.
The Forum received 967 reports of gender-based violence during the six-year period, out of more than 15,000 human rights violations reported.
But incidents of sexual violence are seriously under-reported, said the Forum. Most married women do not report attacks fearing being ostracised by their husbands and others. Prejudice toward those considered to be HIV positive is another motivation for silence.
Among harrowing cases cited of “political rape’’ was that of a 16-year-old girl raped by militia outside her family home to punish her mother for supporting the opposition Movement for Democratic Change.
Other attacks include beatings, death threats, kidnapping and torture.
In one-way women get equal treatment with men: during demonstrations by Women of Zimbabwe Arise (WOZA) protesting the impact of the worsening economic conditions upon women.
“The women are treated by the police in exactly the same way as their male counterparts in respect of the appalling conditions under which they are held (often together with their infant children), the excessive and often brutal force used in affecting their arrest and lack of provision of sanitary towels,’’ said the report.
ENDS

2006-12-09T01:05:00.000+02:00

Scholarships For Student Victims Whose Studies Are Disrupted By Govt Harassment

ZimJournalists Arise received this release a bit late but we thought we would circulate this, owing to the active role the Zimbabwe National Students Union has been playing in giving the Mugabe regime some headaches. ZINASU President Promise Mkwananzi, Beloved Chiweshe and many others have beaten up and brutalized dozens of times, this year alone. These young men and women have revived Zimbabwean student politics reminiscent of the heady days of Arthur Mutambara, Martin Dhinha and others. However after the journalists have done their stories, coverage of how these students survive disturbances to their careers and studies, the repercussions on their academic careers are mostly ignored. These students spend days on end languishing in jails or are just simply asked not to sit exams. A case in point being Promise Mkwananzi.

By Student Solidarity Trust
Seven students who were either expelled or suspended during their tertiary
education in Zimbabwe were honoured by the Students Solidarity Trust last
week after completing their university degrees elsewhere during the course
of this year’s “against all odds” consultative meeting and ceremony held
in Bulawayo on the 18th of November 2006.

The seven received their awards of honour at a ceremony, dubbed “The
against all odds” ceremony, attended by over 130 former & current student
leaders and activists. The function coincided with the International
Students Day, which is commemorated on the 17th of November and was
witnessed by SST board members, ZINASU national council members, and
various students organizations including the Zimbabwe Students Christian
Movement, the National Movement of Catholic Students, Female Students
Network, the Youth Initiative for Democracy in Zimbabwe (YIDEZ) and
SAYWHAT, a students organization that deals with reproductive health
issues.

The majority of the students completed their studies through distance
education with the University of South Africa, and various local colleges
of their choice.

The seven are Tamuka Chirimambowa, John Bomba, Evernice Munando – the only
female fellow in the trust, Eddington Shayanewako, Phillani Zamchiya,
Hillary Kundishora and Showers Mawowa. These students were direct
beneficiaries of the SST’s Students Social Safety Net Programme. The
programme avails funds for study grants, largely, with UNISA and any other
local college to politically victimised human rights defender from the
students’ movement.

“It was a fitting recognition of the tremendous valour and courage
displayed by the fellows who managed to complete their degree programmes,
after having endured sustained persecution and victimization from the
incumbent Mugabe regime,” says McDonald Lewanika, the Coordinator of the
SST.

At the same event, honorary convocations were also awarded to students who
continued to fall victim to the University administration, going through
bouts of torture, harassment, arrests and systematic de-registrations and
suspensions. These are Phillip Pasirai, Benjamin Nyandoro, Washington
Katema, Masimba Kuchera Lawrence Mashungu, Gladys Hlatshwayo, Isaac
Chimutashu, and Otto Saki, who is nowan award winning human rights lawyer
and a board member of the Students Solidarity Trust.

“They managed to attain their degrees, defying all odds,often, seeking
sanctuary under the SST’s Social Safety Net Programme,”said Lewanika.

Activism by students in Zimbabwe has been marred by the Zanu PF regime’s
ruthlessness which has seen students shot to death, brutalized and
arrested for demonstrating against increasing costs of education,
privatization and corruption as well as hardships caused by the
deteriorating economic conditions caused by the Government’s inept
policies and bad governance.

2006-12-07T21:10:00.000+02:00

Chombo To Appoint Another Harare Commission
Makwavarara To Stay???

The term of the Makwvarara Harare Commission expires this Saturday. Local Authority and National Housing Minister Ignatius Chombo, is quoted in the state-run Herald saying another Commission will be appointed. The Minister is silent on whether or not political turn-coat Sekesayi Makwvarara will survive the chop or not. Her term has been extended three times in two years, despite divisions within the ruling party itself over her reckless extravagance.

By Trudy Stevenson Shadow Minister Of Local Government
of the MDC led by Arthur Mutambara

Residents of Harare Need Elected Leadership to Run the City, Not Commissions

The life span of the Commission that has been running the affairs of the city of Harare comes to an end on Saturday this week. Residents of Harare deserve nothing short of an elected and accountable leadership to take over from the corrupt and dysfunctional Sekesai Makwavarara led Commission that was forcibly imposed on the residents by the Minister of Local Government, Public Works and Urban Development, Ignatius Chombo two years ago when he dismissed an elected MDC led Council.

It appears Minister Chombo is determined to stifle democracy by extending the term of the Makwavarara Commission. This is in-spite of the overwhelming evidence to the contrary, typified by poor service delivery; rampant looting of council property, corruption, mismanagement of council property and carefree attitude coupled with downright arrogant behaviour towards the plight of the rate payers that is being exhibited by both the minister and members of the Commission. This is totally unacceptable and it must be stopped.

Chombo spoke of appointing a new commission as if to suggest that there was no alternative to commissions. The alternative is there and it is to give the people of Harare their democratic right to elect those that they feel are competent enough to run the affairs of the city.

MDC joins the residents of Harare in resisting Chombo’s obnoxious, stinking and hypocritical machinations by demanding their right to elect leaders of their choice to run the affairs of the city.

2006-12-07T21:02:00.000+02:00

Latest Media Monitoring Project Zimbabwe Report
November 20th- November 26th 2006
Weekly Media Update 2006-47

1.General comment
THE private media continued to pay attention to rights violations in the country. This week they carried 14 stories on rights abuses and recorded seven new incidents. These included the arrest of university students, members of the public and farmers, harassment of civic bodies and retribution against MDC supporters suspected of voting for the opposition in the October rural district council elections.

All the stories presented state security agents and ZANU PF activists as the perpetrators. However, the private radio stations largely failed to balance the victims’ allegations with official comment.
For example, SW Radio Africa (23/11) reported the MDC claiming that its supporters in most parts of rural Masvingo had “fled their homes and sought refuge in Masvingo town following threats to their lives by ZANU PF supporters and traditional chiefs”.

Reportedly, the ruling party activists were “spearheading the campaign to get rid of all MDC elements” in some parts of the province and forcing opposition supporters to “pay $2000 fines” for attending MDC rallies. No comment was sought from the police nor was there any indication that the station had tried to do so.

Although the private electronic media are operating under extremely difficult conditions, their persistent failure to indicate that they have tried to corroborate such claims or to obtain official comment damages the credibility of their reports that rely on a single source, especially an interested party.
The government media simply ignored the abuses, which of course, constitutes a total dereliction of their professional duty to inform their audiences.

In fact, the media’s inadequate coverage of topical issues was reflected by their failure to fully inform their audiences on the developments at the African Commission on Human and People’s Rights (ACHPR) and the ACP-EU meetings during the week.
Except for the three stories the niche market private electronic media featured, the rest of the mainstream media ignored these important events in which the country’s deteriorating human rights situation came under scrutiny.

Even then, the private electronic media’s treatment of these issues was misleading.
New Zimbabwe.com (22/11), for example, erroneously reported that Zimbabwe’s long-delayed periodic report to ACHPR’s 40th session had been “snubbed”. This was false because it was not on the agenda and therefore not subject to discussion. In fact, the commission acknowledged receipt of the report and filed it for future consideration.
The media’s failure to accurately cover such contemporary issues reflects the level of ineptitude that exists in Zimbabwe’s media services today, while the failure to report breaking stories indicates a lack of urgency in the newsrooms of these organisations that appears to have developed as a result of a lack of journalistic competition in the country’s devastated media landscape. In the case of the government-controlled media however, it is not just professional laziness that sees them omitting important news from their bulletins and newspapers, but a wilful act of suppression, especially in respect of stories that reflect badly on the government or the ruling party.

2.Image building
THIS week the government media used President Mugabe’s visit to Iran and government’s hosting of various regional meetings to paper over the country’s pariah status. They carried 38 stories on these matters, of which 21 appeared in the official Press while ZBH aired 17.
Almost all their reports passively rehashed official statements that sought to portray the country as enjoying sound international relations.

As a result, there was no critical assessment of how exactly the country would benefit from the trip and the meetings. For example, ZBH (22/11, main bulletins) announced that “six agreements were signed” between Zimbabwe and Iran resulting in a “memorandum of understanding on social, political and economic affairs.”
Similarly, Spot FM (23/11, 8pm) simply claimed that the “lives of millions are to improve through various agreements reached at the Comesa summit” and other regional meetings the country hosted without explaining how.
Neither did it provide information on the agreements.

Instead, the official broadcaster seemed more interested in sprucing up the images of the two countries, which it alleged were victims of unwarranted Western demonisation. While Iran was unreasonably being vilified for its “nuclear programme”, ZBH claimed (20/11, morning bulletins) that Zimbabwe was unjustifiably being ostracised for its “land reform”.
No attempt was made to honestly discuss the reasons behind the West’s concerns over the two countries.
Instead, ZTV and Spot FM (20/11, 8pm) passively quoted Mugabe narrowly blaming the West for the chaos in Iraq and lambasting US President George Bush for naming Zimbabwe and Iran as part of the “axis of evil”. He contended that it was the West that were the “actual evil doers” Zimbabwe and Iran had to fight “in order to re-establish a multi-polar world”.

The official Press’ reports were cut from the same cloth.
The Herald and Chronicle (21/11), for example, passively reported Iranian leader Mahmoud Ahmadinejad exalting Mugabe as a “prominent, influential and just leader, a person who loves freedom” and a “leading fighter against colonialism on the African continent”.
Without reconciling such remarks with the situation on the ground, particularly state-sanctioned human rights violations, they then reported (22/11) Iran as having pledged to “stand by Zimbabwe” and condemn the “illegal economic sanctions imposed against Harare by the West”.

Besides allowing Iran to dishonestly present the targeted travel sanctions imposed on the ruling elite as a trade embargo, the papers did not explain the actual reasons behind their imposition.
The official media’s attempt to gloss over the country’s isolation was also apparent in the manner they handled the country’s hosting of regional ministerial meetings and the Common Market for Eastern and Southern Africa (Comesa) summit.

Instead of examining the import of the meetings, these media narrowly projected them as yet another affirmation of the international community’s confidence in Zimbabwe.
For instance, The Herald (21/11) claimed that contrary to “blatant lies peddled by the Western propaganda machinery” that Zimbabwe was isolated, the country’s membership to Comesa “shows it has never been out of the family of nations”.

The government media’s selective use of favourable statements by foreign diplomats to distort the country’s true international status and their failure to professionally handle the matter was reflected in their sourcing patterns.
Notably, none of the official media tried to balance their reports with alternative views.
Except for the Mirror group, the rest of the 11 stories that the private media carried (Press 9, electronic media 2) did not see anything beneficial from the presidential visit to Iran and the regional summits, which they generally ignored.
They noted that the Iran visit would not benefit Zimbabwe’s economy and would actually result in further mortgaging the country’s mineral resources.

For example, Studio 7 (21/11) and The Financial Gazette (23/11) revealed that Zimbabwe had “agreed to supply Iran with (several) minerals” to settle its debt. The Zimbabwe Independent and SW Radio Africa (24/11) carried similar reports noting that previous deals Mugabe had signed with various countries to halt Zimbabwe’s economic decline had not yielded the desired results.

In addition, the two pointed out that although Zimbabwe had granted Russia and China mineral rights in an effort to attract economic aid from the East, the region has so far “not given Mugabe credit lines”.

This, SW Radio Africa observed, was due to the “lawless business environment” that government had created in the country.
Although the private media carried fewer stories, they critically handled the subject as illustrated by the private electronic media’s balanced sourcing pattern.

3.Economy and corruption
THE official media continued to bury the extent of the country’s economic decline and its actual causes in stories that projected government’s economic turnaround strategies as paying dividends.
For example, 85% of the 40 stories the official Press carried on the economy were glowing reports on measures the authorities were taking to address the country’s haemorrhaging economy. The remaining six narrowly blamed corruption for the country’s economic distress, characterised by the galloping cost of living, commodity shortages, decaying infrastructure and poor service delivery.

But instead of interpreting these issues in light of government’s mismanagement record, the papers simply presented the authorities as working tirelessly to clean up the mess.
The Herald (20/11), for example, unquestioningly revealed that government would renew its US$50 million fuel deal with French bank BNP Paribas “as it battles to address the fuel woes dogging the country”.
No attempt was made to probe the source of the funds or discuss the quantity of fuel to be procured under the facility in relation to the country’s requirements.

Likewise, The Sunday Mail (26/11) merely announced – without analysis - that the authorities had struck deals with Russian and Iranian companies to build power plants in their efforts to boost the country’s ailing capacity to generate electricity.
ZBH was no different in its 38 stories on the topic.
It highlighted symptoms of economic decline in isolation of government policies and passively allowed officials to narrowly blame business for the economic chaos while defending their turn-around strategies.
For example, Spot FM and ZTV (22/11, 8pm) allowed Finance Minister Herbert Murerwa to blame business for commodity shortages saying his 2007 budget, which would be premised on a “promising agricultural season” would “deal with unscrupulous business people who create artificial shortages” without explaining how.

ZTV also simply granted Reserve Bank governor Gideon Gono carte blanche to present a deceitful defence of the printing of money as a “necessary evil” that would lay “the basis for stability and recovery for future generations”. The negative ramifications of such policies on the country’s struggling economy were utterly ignored.
The official media’s reluctance to examine the authorities’ policy deficiencies complemented their efforts to promote government measures as an antidote for the ailing economy.

It was against this background that The Herald and Chronicle (20/11) passively reported Employers’ Confederation of Zimbabwe official David Govere claiming that the country’s economy “would recover” next year because of the government’s NEDPP and stakeholders’ “unprecedented determination to rectify macro-economic fundamentals…”
The government papers’ biased coverage in defence of government policies was illustrated by their dependence on official voices.
Although ZBH’s sourcing pattern appeared fairly balanced,the views raised by its commentators were either buried in official pronouncements or used to endorse government policies.

The private media remained candid about the country’s gloomy economic outlook and its root causes in the 55 stories they carried on the subject. Of these, 50 appeared in the private papers and five in the private electronic media.
The stories reported news of commodity shortages, price increases, the drastic decline in industrial productivity, mismanagement of state-owned enterprises, crippling forex shortages and the continued weakening value of the local currency.

In one of the stories, The Daily Mirror (20/11) revealed that several companies in the manufacturing sector were “operating at below 10% capacity”, adding that Olivine Industries had “ceased the production of cooking oil owing to the unavailability of raw materials”.
SW Radio Africa (22/11) and The Financial Gazette (23/11) quoted economists and business attributing such problems and commodity shortages to government’s failed economic policies.

In fact, the Gazette noted that the much-publicized NEDPP was “heading for the dustbin” as government was now “drafting its successor”. It quoted economists saying the crafting of another economic blueprint was not only “an admission of failure to fix the crisis by the government” but demonstrated “confusion” surrounding the country’s economic management.
The Zimbabwe Independent concurred, noting that NEDPP had “missed almost all of its targets”.

As further evidence of government’s failed policies, Studio 7 (24/11) quoted economist John Robertson warning that the local currency would slide to US$1:ZW$4000 by end of December and “plummet to $18,000 by end of 2007” on the parallel market “unless the government institutes bold economic and political reforms”.
The Gazette and Independent also followed up on the alleged plundering of state enterprises by government officials.

While the Gazette provided more details on the alleged involvement of Local Government Minister Ignatius Chombo in the ZUPCO scandal, the Independent announced that Parliament intended to summon government officials implicated in the pillaging of Ziscosteel (Zisco) to “explain themselves”.

Although the official media referred to these issues, all six corruption stories either projected government as committed to stemming graft, or simply reported on the official dismissal of allegations of corruption by the authorities.

The private media’s critical assessment of the country’s continuing economic crisis was reflected by the private papers’ attempts to balance official voices with comments from those outside government.

The MEDIA UPDATE was produced and circulated by the Media Monitoring Project Zimbabwe, 15 Duthie Avenue, Alexandra Park, Harare, Tel/fax: 263 4 703702, E-mail: monitors@mmpz.org.zw

ZimJournalists Arise Does Not Take Responsibility For The Content Of This Report

2006-12-07T20:58:00.000+02:00

A French Twist To World News.

By ZimJournalists Arise
Not to be outdone by USA’s CNN, the British’s BBC, the Middle East’s Al-Jazeera, the French have launched their own 24 hour news channel this week. The channel which will be televised across the globe, seeks to articulate France’s vision and values to the world 24/7. Televised broadcast on two channels will be transmitted to Europe, Middle East and Africa via satellite to 75 million households in more than 90 countries. ZimJournalists Arise could not immediately establish whether or not Zimbabwean on satellite will be able to access the channel. To date only Americans living in Washington dc who have Comcast cable will able to view. An Arabic language channel is to air next year, with Spanish expected to follow in the next three years

2006-12-07T03:18:00.000+02:00

Zimbabwe Living Standards Drop By 150%
By IRIN

Zimbabwe's living standards have declined by 150 percent within the last decade, says a poverty assessment survey complied and published by the public service and social welfare ministry.

"The period 1996 to 2005 was marked by accelerated deterioration in the socio-economic situation," the survey said. "In contrast to the development achievements of the first ten years of independence (granted from Britain in 1980), the decade of the 1990s witnessed a turnaround of economic fortunes as economic decline set in and structural problems of high poverty and inequality persisted."

The social welfare ministry survey revealed that between 1995 and 2003, more than 63 percent of rural people could not obtain enough money to meet both basic food and non-food requirements, while the figure in urban areas was 53 percent. The survey covered 58 rural districts and 27 urban areas across the country's ten provinces.

Minimum monthly incomes of urban dwellers declined sharply during the same period because of the "deteriorating macro-economic environment, characterised by hyperinflation, negative GDP [gross domestic product] and shrinking formal job opportunities".

Gender was also recognised as having an impact on poverty levels. "Female-headed households, who are already mostly very poor, are moving towards the bottom limit," the ministry said. Since the last survey in 1995, malnutrition in children under five increased by 35 percent, people without access to clean water increased by 25 percent, and the number of people without access to healthcare went up by 48 percent.

The ZANU-PF government has experimented with six different economic policies since 1996, with dire consequences: hyperinflation has been hovering around 1,000 percent - the highest in the world; unemployment levels are above 70 percent; the industrial base has contracted by a third since 2000; foreign currency is scarce; shortages of basic commodities, such as food and energy, have become commonplace.

The poverty assessment cited the country's economic problems after the withdrawal of international donor support "following the implementation of a controversial land reform programme" as a contributing factor to the economic meltdown.

In 2000 President Robert Mugabe's government embarked on a fast-track land redistribution exercise that sought to give land to thousands of blacks from impoverished communal areas by removing more than 4,000 commercial white farmers from their farms. The European Union and the United States subsequently imposed limited sanctions on top government officials for human rights violations and Mugabe's disputed re-election in 2002.

According to independent analysts, the farming sector, once one of the main foreign exchange earners, has shrunk by about 65 percent as a result of the land reform programme.

The survey said poverty, already growing, had been worsened by recurrent droughts and floods, as well as an 18.1 percent HIV/ AIDS prevalence - one of the world's highest - which compounded non-productivity in the farming sector, as a recent ministry of agriculture study had concluded.

Farming communities were among the majority of areas that did not have access to health centres, with people having to travel more than 10km to the nearest clinic or hospital.

Rising medical costs forced about 30 percent of pregnant women to deliver at home, and skilled personnel attended to only 72 percent of those who went to health centres to have their babies, mostly due to an exodus of health workers in search of better salaries and working conditions.

Falling standards of living have made basics seem like luxuries. "I bought a wardrobe, bed and radio with my first salary but these things are now a pipedream for most people - even those with the so-called executive jobs," Sibangani Nkomo, 45, a teacher now employed as a human resources officer at a leading wholesaler in the capital, Harare, told IRIN.

Nkomo takes home Z$200,000 (US$800) a month, most of which is absorbed by rent, leaving him with no option but to borrow from friends and loan sharks. His wife went to Britain three years ago, where she works as a child minder and sends home the occasional US$200.

He has not been able to visit his elderly mother in rural Masvingo, about 250km south of Harare, for the past three years because he cannot afford the cost of transport. "When I can, I send her [my mother] a packet of sugar and a bottle of cooking oil through the driver of the bus that gets to my rural home, and I know she thinks I no longer care about her."

Before the country's economic meltdown, Nkomo said, weekends were spent with friends, when they would drink beer or attend local soccer matches. Nowadays, economic restraints keep him housebound.

According to the Consumer Council of Zimbabwe (CCZ), in October the basic monthly cost of living for a family of six was Z$141,706 (US$566); in November it cost at least Z$208,000 (US$832) - a 47.3 percent increase.

"CCZ is greatly concerned about the general price increases, especially in the month of November, which recorded significant increases compared to other months in the year," the consumer watchdog said in a statement.

2006-12-07T03:04:00.000+02:00

MISA Zimbabwe Analysis Of Draft Bill of the Interception of Communications Bill, 2006

Introduction

This is an analysis carried out by the Media Institute of Southern
Africa (MISA) Zimbabwe comparing the 1st and 2nd Draft Bills of the
Interception of Communications Bill. MISA-Zimbabwe makes a commentary of the
serious implications of this proposed law in the last half of this
analysis.

After submissions were made on the Interception of Communication Bill
(H.B 4, 2006) by stakeholders at a Parliamentary Public Hearing, and to
Parliament after the Hearing, the Minister of Justice, Legal and
Parliamentary Affairs - Patrick Chinamasa presented a motion to the House of
Assembly in the following terms:

"That the present text of the Interception of Communication Bill (H.B
4, 2006) currently in the Order Paper be withdrawn and be replaced by a
new consolidated text of the Bill in terms of Standing Order No. 128
and that the new Bill be treated as having been introduced in terms of
Standing Order No. 103 and referred to the Parliamentary Legal
Committee."

The House of Assembly approved the motion on Tuesday 7th November 2006.
A new Consolidated Text of the Bill has now been developed, pursuant to
the subject motion.

This presentation compares to the two sets of documents, and provides a
critical analysis of the proposed communications law.

1.Technical and Quantitative Comparison between the ORIGINAL BILL,
with the NEW CONSOLIDATED TEXT

In this presentation, the original Interception of Communication Bill
(H.B 4, 2006, that was published in the Government Gazette of 26 May
2006, shall be referred to as the "Original Bill". The revised document
that has replaced to Original Bill pursuant to the motion that was
approved by the House of Assembly on Tuesday 7th November 2007 shall be
referred to as the "New Consolidated Text."

There are at least 38 differences between the Original Bill and the New
Consolidated Text. Certain differences are major, some are minor,
others are significant and many are insignificant. The differences are as
follows:

1.1 In the summary contained in the introductory part of the New
Consolidated Text, relating to "Part V" of the Bill, Appellant Jurisdiction
is transferred from the Minister to the Administrative Court

1.2 Still in the same paragraph (referred to in 1.1 herein above,
under the Original Bill there is provision for a two-stage appeal process,
that is firstly an Appeal to the Minister, then secondly an Appeal to
the Administrative Court. Under the new consolidated text, Appellant
jurisdiction lies solely with the Administrative Court. It is a one-tier
Appeal process.

1.3 The summary for Part V under the New Consolidated Text bestows
upon the Attorney General (AG), review powers in respect of interception
issues. The relevant summary under the Original Bill makes no mention
of the review powers for the AG.

1.4 On the Index, on the s7 part thereof, the Original Bill refers to
"Scope of Warrant" only, yet the New Consolidated Text expands the
matter to "Scope of Warrant and Renewal thereof."

1.5 The s10 item on the Original Bill index carries the word
"telecommunication". The New Consolidated Text contains "telecommunications"

1.6 The New Consolidated Text's index includes "Review of Exercise of
Minister's powers under this Act" as s19. This item is absent from the
Original Bill.

1.7 In the Interpretation or definitions section, for the definition
of the term "authorized person", the Original Text refers to s5 (1) but
the New Consolidated Text simply refers to s5.

1.8 The Original Text contains a definition for the term
"Interception Subject" or "target". The term and its accompanying definition are
omitted in the New Consolidated Text.

1.9 The New Consolidated Text defines the term "national security of
Zimbabwe". There is no such definition in the Original Text.

1.10 The New Consolidated Text also defines the term "organized
criminal group".

Again, there is no such definition in the Original Text.

1.11 The definition of the term "serious offence" under the New
Consolidated Text differs from the one offered in the Original Text. Whereas
the Original Bill simply assigns the definition provided in the Serious
Offences (Confiscation of Profits) Act (Chapter 9:17) to the proposed
Act, the New Consolidated Text provides an independent definition, that
is: "conduct constituting an offence punishable by a maximum
deprivation of liberty of at least four years or a more serious penalty."

1.12 s4 of the Original Bill provides that "the technical experts shall
give technical advise …", but the same section in the New
Consolidated Text stipulates that "the monitoring centre shall give technical
advice …"

1.13 at the end of s5 (3) (e) of the New Consolidated Text, the word
"and" is inserted. That word does not appear on that spot in the
Original Bill

1.14 The provisions in s6 (1) (a) (i) and (ii) of the New
Consolidated Text are fresh.
The issuance of warrants relating to (i)"a serious offence by an
organised group

…", and (ii) an offence referred to in the Third Schedule or the
Ninth Schedule of the Criminal Procedure and Evidence Act (Chapter
9:07), do not arise in the original Bill.

1.15 In the Original Bill there is a provision [s6 (1) (d) ] for the
issuance of a warrant if "there is a threat to the national interest
involving the State's international relations or obligations." That
clause is omitted in the New Consolidated Text.

1.16 s7 (1) (a) of the New Consolidated Text starts with "subject to
subsection (2), ..". The provisions of the same section in the Original
Bill are not made subject to any other part of the Bill. The phrase
"subject to subsection (2), .." does not appear in the Original Bill.

1.17 S7 (1) (a) also has the effect of extending the life of a renewed
warrant from one month, to three months. Clearly the duration over
which a citizen's right to communication is interfered with is longer
under the New Consolidated Text than it is in the Original Bill.

1.18 The Provisions in s7 (1) (a) (i) and (ii) in the New Consolidated
Text do not appear in the Original Text. These provisions relate to
warrants that may be renewed by the Minister (i) in respect of a serious
offence by an organised criminal group, or (ii) or in relation to
serious offences as listed in the Criminal Procedure and Evidence Act.

1.19 s7 (1) (a) (ii) of the New Consolidated Text also introduces an
aspect that is not included in the Original Bill. This fresh provision
compels the Minister, before issuing a warrant, to consult the Attorney
General (AG), that is in matters relating to offences arising from the
Third Schedule or the Ninth Schedule of the Criminal Procedure and
Evidence Act.

1.20 s7 (2) of the New Consolidated Text does not appear at all in the
Original Bill.This new section is to the effect that "upon
expiry of a warrant … or within six months of such expiry, the warrant
may, for good cause shown by the authorised person, be renewed for a
further period not exceeding three months -

(a) by the Minister in consultation with the AG in respect of a serious
offence by an organised group or in matters relating to national
security, national economic interests, or public safety."

1.21 s7 (3) of the New Consolidated Text is also a whole new provision.
It is not contained in the Original Bill. In the new section, it is
provided that "upon expiry of a warrant … or within six months of such
expiry, the warrant may, for good cause shown by the authorised person,
be renewed for a further period not exceeding three months by the
Administrative Court upon an Ex-Parte application by the authorised person
concerned." (N.B. An Ex Parte application is one that is made by one
party without the other party being called upon to respond to the
allegations raised.)

1.22 s7 (4) of the New Consolidated Text is not included in the
Original Bill. This new section provides that "every renewal that is sought
within six months of the expiry of a warrant that was renewed in terms
of (the law), may be renewed for further periods not exceeding three
months at a time by the Administrative Court upon an ex parte application
by the authorised person concerned."

1.23 Also not featuring in the Original Bill but included in the New
Consolidated Text is s7 (5) which stipulates that "an authorised person
shall notify the Minister in advance and in writing of any application
for the renewal of a warrant …"

1.24 s9 (1) (c) of the Original Text refers to "call-related"
information …, yet the New Consolidated Text 'talks' of "call-relation"
information …

1.25 in the New Consolidated Text, s9 (1) (i) starts with the word:
"that …" The same section in the Original Bill starts from "all
interceptions ….)

1.26 In the New Consolidated Text, the punctuation is slightly changed
by the addition of a comma under s11 (5) (a) between the words "which"
and "alone" - "those the disclosure of which, alone …

1.27 In s11 (6) (a), the draftsman/ woman makes a futile attempt to
correct the bad English that had been used in the Original Bill. The
Original Bill provided that "if a person to whom a notice has been given -

(a)has been in possession of any key to the protected information,
but no longer in possesses it …" In the New Consolidated Text,
relevant portion reads: "… any key to the protected information, but is no
longer possesses it …"

1.28 The Original Bill in its s12 (5) (b) stipulates compliance "with
this section and section 9", but the New Consolidated Text provides for
compliance "with section 9" only, which means that the phrase 'this
section and' has been omitted in the New Consolidated Text.

1.29 Under section 13 (1) (a) of the Original Bill, the proposed law
refers to the execution of "a warrant or directive …". The New
Consolidated Text expands the execution to include: "a warrant, notice or
directive …". That is to say the execution of a notice is fresh to the New
Consolidated Text.

1.30 In the New Consolidated Text, sections 13 (2) and 13 (3) of the
Original Bill are reversed so that s13 (2) of the Original Bill is now
s13(3) in the New Consolidated Text, and s13 (3) of the Original Bill is
now s 13 (2) in the New Consolidated Text.

1.31 Punctuation is slightly amended in s13 (3) of the New Consolidated
Text, by the insertion of a comma between the words "providers" and
"or", that is to say - "…categories of service providers, or protected
…" The comma does not appear in the Original Bill.

1.32 s13 (4) of the Original Bill refers to " … personnel and
administration services which are required …", but the same section under
the New Consolidated Text drops the "services" so that it reads: " …
personnel and administration which are required …"

1.33 The Appeals sections of the two documents also differ. On the one
hand s18 (1) of the Original Bill provides that "any person who is
aggrieved by a warrant, directive or order issued …". On the other hand,
the same section in the s18 (1) provides that "any person who is
aggrieved by a warrant, a directive referred to in section 6 (2) (a) or a
directive or order issued …". The addition to the New Consolidated Text
is therefore the phrase: " a directive referred to in section 6 (2)
(a)"

1.34 Under the New Consolidated Text, in section 18 (1) thereof,
appeals will be heard by the Administrative Court, not the Minister as was
provided for under the Original Bill.

1.35 The New Consolidated Text, in s18 (1) thereof, the grace period
within which an appeal may be lodged by an aggrieved party is extended
from the fourteen days/ two weeks that were provided in the Original
Bill, upwards to one month, that is four weeks.

1.36 Under the Original Bill, in s18 (1) thereof, the Minister had
authority to "vary or set aside the warrant, directive or order appealed
against. He/ she has been stripped of such powers under the New
Consolidated Text.

1.37 The New Consolidated Text contains a whole new section - s18 (3),
which does not appear in the Original Bill. The new section provides
that: "For the avoidance of doubt, the Administrative Court is an
"adjudicating authority" for the purposes of the Courts and Adjudicating
Authorities (Publicity Restriction) Act [Chapter 7:04] when considering an
Appeal in terms of this section." Section 19 of the New Consolidated
Text - "Review of Minister's powers under this Act" - is fresh to the
New Consolidated Text. It is not part of the Original Bill. The new
section provides that not later than three months after the end of each
calendar year, the Minister shall submit for review by the AG, a written
summary of the warrants that were issued during the subject year, which
were not renewed.

1.38 The inevitable result of the addition of a new section 19 to the
New Consolidated Text is that what appeared as s19 in the Original Bill,
that is "Regulations", is now section 20 under the New Consolidated
Text. The content of the section however remains wholly unchanged.

2.A Critical and Qualitative Analysis of the New Consolidated Text

Under this part of the analysis, the proposed law, as appearing
under the Original Bill, and as amended by the New Consolidated Text,
shall be referred to simply as "the proposed law", or "the Bill".

2.1It is quite clear from the technical and quantitative
analysis given herein above that the New Consolidated Text is not
substantially different from the Original Bill.

2.2The most notable observation is that the New Consolidated
Text (the Bill) still carries unconstitutional provisions in that it
threatens citizens' fundamental rights to privacy freedom of conscience,
expression and association.

2.3The Bill still attempts to overturn the outcome of the Law
Society of Zimbabwe Vs the Minister of Transport and Communications, and
the Attorney General case of the year 2003, which ruled that freedom of
expression includes freedom from interference with correspondence
(electronic or postal).

2.4 That case also made it clear that laws with vague
provisions, and which bestow extremely broad and unfettered powers to an
individual without checks and balances are not reasonable. That is the case
with the proposed law.

2.5 The Bill carries vague and broad provisions. It contains
terms like "any directive" [s6 (2) (a) ], and "any other information"
[s10 (1) (c)]. It renders wide discretionary powers to individuals. The
last paragraph of the summary section of the Bill states that the
Minister shall be empowered to make regulations for all matters which in his
opinion, are necessary or convenient to be prescribed. All that
constitutes a bad law.

2.6 This Bill also introduces unprecedented grounds for law
making. The minister is empowered to legislate for convenience or
expedience (see s12 (3) (d) of the Bill), to the benefit of the government, and
potentially to the detriment of citizens. Authorised persons are also
given wide discretionary or opinionated powers (e.g s11 (7) (b), they
may destroy records "if in the opinion of the authorised person …" it
is appropriate to do so.)

2.7 It is not clear why the Attorney General has been granted
review powers, and the right to be consulted on certain issues under the
Bill.

2.8 Although attempts are made at defining the terms: "national
security", and "organised criminal group", the issues surrounding these
terms remain largely debatable and vague.

2.9The definition of Minister also leaves the legislative
function open to all sorts of possibilities. Any person whom the President,
in his whim and caprice, wishes to lend legislative powers, could end
up deciding on these critical issues affecting civil liberties,
notwithstanding the competence or otherwise of such a person to deal with the
relevant issues. This cannot be acceptable in a democratic society.

2.10 Authorised persons are also empowered to nominate persons of
their choice to apply for warrants. That is also a dangerous provision
as the discretionary powers bestowed upon the Minister are too wide.

2.11 The Bill makes very little provision for citizens to respond
to the allegations that lead to warrants being issued against them.
That is contrary to the principles of natural justice, which require that
both parties to an issue must be given a fair chances to present their
respective accounts on the subject issue.

2.12 The circumstances under which requests may be granted under ex
parte applications, in the Bill, are not justifiable. The issues that
are subjected to ex parte proceedings are not as serious or as urgent
enough as is required under common law.

2.13 The duration of warrants (3 months) is far too long. Why
should a citizen's privacy be under invasion for such a long time? The
Original Bill provided that the life of a renewed warrant would be only
one month long. The New Consolidated Text extends it to three months,
which is an exacerbation of the infringement of the citizen's liberties.

2.14 And the Bill does not provide any limit as to the number of
times for which warrants may be renewed. Any law should afford the
citizen a substantial degree of certainty.

2.15 The Bill also carries heavy custodial sentences. For
instance, s3 (3) of the Bill provides for a maximum sentence of five years
imprisonment on persons who intercept or attempt to intercept communication
without a warrant. S11 (8) imposes the same period of imprisonment
upon persons who fail to disclose a required key. These situations could
be resolved through civil proceedings.

2.16 The Bill is an illustration of the government's determination
to criminalise, more and more, matters that should ordinarily be dealt
with in civil courts, or through alternative dispute resolution.

2.17 The autonomy of the proposed Monitoring of Interception of
Communications Centre is threatened by the provision that technical
experts at the Centre shall be designated by "the government
telecommunications agency …"

2.18 The proposed law is grossly unfair as it seeks to impose
financial obligations upon corporate citizens, in a fashion that is not
justifiable in a democratic society.

2.19 Under the proposed law, private, confidential and personal
information may be intercepted and abused by the system. Lawyer-client
confidentiality, banker-customer confidentiality, husband-wife
confidentiality, and all other forms of confidentiality, shall be breached should
the proposed law be enacted into actual law.

2.20 Service providers including those in the Internet Service
Provision, the banking, the legal, and other industries and profession,
will no longer be able to assure their clients that issues discussed, or
information conveyed in the normal transaction of business, will remain
private and confidential

2.21 Service providers in the communications industry shall be
forced to incur huge capital and foreign currency expenses for the
acquisition of hardware and software that will become necessary for compliance
with the proposed law. Some players in the industry could be driven
out of business. The technical description of the hardware and software
facilities outlined in section 9 of the Bill makes it clear that it
will be a costly exercise.

2.22To worsen the plight of the targeted businesses, the Bill also
excludes compensation for indirect costs. (see s13 (4))

2.23The provisions for compensation in the Bill are insufficient
to protect the financial interests of players in the industry. S13 (1)
(b) of the Bill provides that the Minister … shall prescribe
"reasonable tariffs of compensation payable …". This means the Minister could
still decide that the sum claimed by a service provider as
compensation, is unreasonable, notwithstanding the actual sums that the service
provider would have spent on the required machinery and software.

2.24 The Bill is also flawed in its failure to provide for
compensation or damages in cases of the issuance of wrongful or malicious
warrants. The protection granted to authorised persons is unjustifiable.

2.25 The in-house and mass media industries could also be adversely
affected as news materials could be intercepted in the course of
transmission, thereby making it impossible or difficult for the relevant
media houses to operate. That would also naturally limit the nation's
access to information but infringe on freedom of expression rights.

2.26 The Bill attempts to present the government as a friendly
authority. There is reference in section 9 of the Bill to "assistance by
service providers". But the state is certainly not seeking assistance.
It is crafting a decree. In s9 (2) of the Bill, it is declared that
"a service provider who fails to give assistance … shall be guilty of
an offence and liable to a fine …" Assistance by its very nature,
ought to be charitable. Once the slightest degree of force or penalties
arises, the term assistance becomes inappropriate.

2.27 The word "recommendation" is also used inappropriately in s19
(3) of the Bill because the Minister is compelled to comply. To say "
… the Minister shall comply …" makes the provision peremptory, and
it renders the word recommendation redundant. "Directive" would be a
better word.

2.28 The authors of the proposed law are not as friendly and
compassionate as might be suggested by the use of soft words in the Bill.

2.29 The Bill still caries sections with problematic word
arrangement, and bad English. Any law must be well presented to citizens.

2.30 The Bill does not make it clear what the effect of an appeal
will be upon a warrant.

2.31It is also not clear why the AG's review function should be
exercised only at the end of each year, when in fact citizens are
affected by the law throughout the year. It is also not clear why the review
process should apply only to the warrants that were not renewed.

Positive developments in bill

2.32.1 The reduction of Ministerial powers through transfer of certain
functions to the Administrative Courts, and the provision of review
functions by the AG or the Administrative Court

2.32.2 The inclusion of some rudimentary (though inadequate) system of
checks and balances through the involvement of the Attorney General.
(the AG might not the best office to provide that function)

2.32.3 The Bill extends the grace period within which appeals may be
lodged from two weeks (in the Original Bill) to four weeks (in the New
Consolidated Text). As stated earlier, the shortcoming under this
process is that it is not clear what the effect of the appeal would be on the
warrant. And, further, the victim might not become aware that a
warrant has been issued against him, which lack of knowledge would deprive
him/ her from his/ her right to appeal.

2.32.4 Appellate authority has been transferred from the Minister to
the Administrative Court.

2.32.5 Discretion under the Appeals section of the Bill has been
transferred from the Minister to the Administrative Court, and such
discretion has been limited to the issue of costs.

It goes without saying that the negative aspects of the proposed law outweigh the positive ones.

The Interception of Communications Bill, 2006, even in its revised
form, is a retrogressive and repressive piece of law that has no place in a
democratic society. No amount of revision would justify the impending
snooping. The Bill fails to disclose the solid objective behind the
proposal for interception of communications.

Analysis done by Chris Mhike (Legal Practitioner) on Behalf of
MISA-Zimbabwe
For any questions, enquiries, queries please contact:

Media Institute of Southern Africa-Zimbabwe
84 McChlery Avenue
Eastlea
Box HR 8113
Harare Zimbabwe
Tel +263 4 776165 or +263 11 602 448 or +263 11 621 015
E-mail misa@mweb.co.zw, wilbert@misazim.co.zw

2006-12-07T02:57:00.000+02:00

EU To Discuss Zimbabwe Sanctions Before Next Feburary

UK Parly, House Of Commons Debate This Week

The Secretary of State was asked—
Mr. Henry Bellingham (North-West Norfolk) (Con): When she next expects to meet her European Union counterparts to discuss the effectiveness of current sanctions against Zimbabwe.

The Minister for Europe (Mr. Geoffrey Hoon): My right hon. Friend the Foreign Secretary discussed Zimbabwe with her EU counterparts in October. I have also had discussions on that country, including with my Portuguese counterpart. There will be further discussion of the EU’s targeted measures against Zimbabwe early next year, before their expiry in February. We believe that the measures, which target the regime members and not ordinary Zimbabweans, are effective and should be continued.

Mr. Bellingham: The Minister will be aware of the total collapse of Zimbabwe’s infrastructure and the rampant hyperinflation, with the cost of water in Harare last week increasing from 8 to 130 Zimbabwean dollars per unit. Is he also aware of the horrific human rights abuses, including the recent police attacks on the trade union vice-president Lucia Matibenga, which resulted in a broken arm? Surely the time has come for our Government and Europe to tighten smart sanctions and travel bans, which do not affect Zimbabwe’s hard-pressed citizens, but are aimed at Mugabe and his evil henchmen?

Mr. Hoon: May I make it clear that the UK condemns the most recent assaults on ordinary Zimbabweans? The organisation Women of Zimbabwe Arise shuns any form of violent demonstration and has a history of peaceful protest; there can be no excuse for the attacks that its members have suffered. The beating of women and children only two months after the abuse of the trade union leadership is further evidence of Zimbabwe’s terrible human rights record, which Robert Mugabe tries to argue is a figment of the west’s imagination.

I agree with the hon. Gentleman that it is vital that we continue to isolate the regime, but, as his opening observations made clear, we have no quarrel with the people of Zimbabwe and no reason to cause further harm to a population who are already suffering as a result of the appalling decisions of their leaders. That is why we draw the distinction between sanctions that are aimed at the regime and other measures that might further damage the people of Zimbabwe.

Mr. Brian Jenkins (Tamworth) (Lab): Although I welcome the talks on Zimbabwe with our EU partners, should not more effort be spent in talking to Zimbabwe’s neighbours, whose actions might have more effect, and to countries such as China, which continue to invest in Zimbabwe?

Mr. Hoon: I agree that all parts of the international community, and in particular Zimbabwe’s near neighbours, could do more. It is important to continue to isolate the regime, and it is vital to world opinion that the countries of southern Africa take united and effective action to isolate Zimbabwe. I strongly agree with my hon. Friend’s comments.

Dr. Julian Lewis (New Forest, East) (Con): Is it not a fact that there are no practical consequences that the Minister can name that have affected the leaders of Zimbabwe as a result of the sanctions? To follow up the suggestion made by the hon. Member for Tamworth (Mr. Jenkins), is it not necessary to do more and not only talk to Zimbabwe’s neighbours, but pin them down to practical measures that they can impose and we cannot?

Mr. Hoon: I have made it clear that we would like the international community, including Zimbabwe’s southern African neighbours, to do more, but I do not accept that there are no practical consequences. If that were so, the regime in Zimbabwe would not protest so loud and so long about the impact that the sanctions have. The fact is that its leaders do protest, which means that the sanctions are having some effect on them.

2006-12-07T02:32:00.000+02:00

ZimJournalists Arise received a picture from our readers in London of the Free Zim Youth demonstration recently.The youths have adopted a militant stance against friends and sympathizers of the Mugabe regime, that visit England. Some of the activities the youth have undertaken are taking South African foreign minister Nkosazana Zuma, Mozambican President and London Zimbabwe ambassador to task.
ZimJournalists Arise welcomes picture of events, as we believe pictures tell the story better than words.

2006-12-06T00:00:00.000+02:00

Zimbabwe Secret Agencies Confiscate Radios From Rural Folk

Information is being circulated that secret agents are confisticating rural people's radios. Now thats what we call TOTAL MADNESS AND DESPERATION to silence the media. Maybe jamming foreign based Zimbabwean radio stations is not working.

Disgusting!!!!

By Sekai Holland,
MDC Secretary For Policy And Research

News has just come in that Progressive Teachers Union of Zimbabwe (PTUZ)members, identified by rural communities in Gokwe District, the MidlandsNorth Province, as focal persons for their Radio Communication Project hadtheir radios seized by local CIO operatives. Raymond Majongwe is theSecretary General of PTUZ. When teachers explained that their radios weredistributed by their Union, they were asked to produce their Unionmembership cards. Having done so, CIO still took away the radios.

Radios were distributed to them last week. However news is that communitieswhose radios were removed are responding with displeasure.

The Radios are a popular phenomenon in rural life. They provide the latestnews, local and international and link up these isolated areas to oneanother, and with the rest of the world.

Mberengwa was the first district to raise an alarm this afternoon after theMataga CIO operating from Mataga Police station took away 2 radios, one from Thomas Shoko, last Saturday and the other from Mrs Sarudzai Dube, late lastnight.

The alert has been raised nationally that this is the latest CIO project.

2006-12-05T23:54:00.000+02:00

Zimbabwe Jails Set To Fill As Government Threatens To Jail Schools Over Fee Hikes

By Sci-Tech News
The Zimbabwe government has capped fees for the country's private schools, threatening school heads with jail terms if they charge more than the gazetted prices as a battle for control over non-government schools intensifies, it was reported Tuesday.

School authorities say legal procedures have not been followed when setting the fees and are challenging the directive.

Education Minister Aeneas Chigwedere said the government had decided to set next term's new fees for Zimbabwe's 61 private schools to protect parents from exploitation, reports the state-controlled Herald newspaper.

Fees at many private schools in Zimbabwe have skyrocketed over the past few years as rampant inflation takes its toll. This has angered President Robert Mugabe's government, which has accused the schools of adopting elitist policies and trying to exclude pupils from poor families.

The new fees for day scholars at exclusive schools like St Georges College and Arundel Girls School in Harare have been set at just 153,000 Zimbabwe dollars per term - 612 US dollars at the official exchange rate but only 64 US at the widely-used parallel rate.

Boarding school fees have been set at 509,858 Zimbabwe dollars (2,039 US at the official rate, 212 US at the market rate), said the Herald.

2006-12-05T23:47:00.000+02:00

UN Chief James Morris To Visit Zimbabwe

By World Food Program
ames T. Morris, the UN Secretary-General's Special Envoy for Humanitarian Needs in Southern Africa, will start his seventh and final trip to the region on Thursday (December 7) to urge governments and donors to take decisive actions to tackle long-term development problems.

During his eight-day mission, Morris plans to visit Zambia, Malawi, Zimbabwe and Mozambique as well as hold meetings with UN officials in South Africa. Morris, who is also the Executive Director of the World Food Programme, was appointed UN Special Envoy in July 2002. He will retire from WFP as well as the Special Envoy post early in the New Year.

Morris will hold a press briefing in Johannesburg on December 13 at 11.00 am at WFP's offices at Merafe House, 11 Naivasha Road, Sunninghill. Media interested in attending should bring accreditation and allow time for a rigorous security check upon arrival..

For one-on-one interviews, please contact Claudia Altorio on Tel: 011-517-1655 (office) or 082-908-1447 (cell)

Itinerary
Zambia: December 7-9
Malawi: December 9-10
Zimbabwe: December 10-11
Johannesburg: December 13 – Press Conference
Mozambique: December 14-15

For more information contact:
Mike Huggins (traveling with the S. Envoy) Tel: +27-11-517-1662 (office)
Tel: +27 82-908-1448 (cell)

2006-12-05T23:44:00.000+02:00

South Africa Planning for 2010 Soccer World Cup Moves Into Top Gear

By Highway Africa News Agency
In anticipation of the 2010 and 2014 Soccer World Cups, the South African government has promised the Federation of International Football Associations (FIFA) a state-of the art technology and capital driven World Cup. Improvements that will make the World Cup a successful one include the availability of: -enough radio bandwidth frequency spectrum -improvement in access to broadcast coverage of rural areas -ensure excellent project management skills to manage complex and large productions -availability of adequate bandwidth for international demand on various platforms -upgrading of facilities and technology -funding implications -multiple language delivery -convergence and its implications for 2010

According to international football analysts the 2010 World Cup could be used to determine the readiness of the African continent to host international events of such magnitude, considering that it is the first time in the history of FIFA that the World Cup will be held on the African continent. Furthermore, the 2010 World Cup could be a marketing opportunity for the African continent to improve Africa 's image abroad.

Central to a successful world cup is the availability of satellite and fibre optic communications facilities for live broadcasts. The availability of broadband Internet facilities in and around FIFA's hotel facilities can break or boost Africa 's chances to host another world cup again. So that at stake is not the image of South Africa alone but that of the African continent and its peoples.

Meetings with FIFA's broadcasting team to determine what other role the SABC will play during the world cup are going on and training of SABC staffers in running a successful soccer event is also taking place.

However, the delivery of the SABC's HDTV infrastructure is still to be made, and the SABC is also engaged in assessing the involvement of other local and African broadcasters in the broadcasting of the 2010 Soccer World Cup.

2006-12-05T03:17:00.000+02:00

Zim Youths Challenge Mozambican President In London

By Zim Youths Arise

Mozambican President, Armando Guebuza, faced tough questioning when he addressed an invited audience of African diplomats at London’s prestigious foreign policy institute, Chatham House, today Monday 4 December 2006.

As soon as he finished speaking, President Guebuza was grilled by black Zimbabwean human rights activists in the audience.

They were from the group Free Zim Youth and expressed their disquiet at the way Mozambique and other Southern African nations had failed to press President Robert Mugabe of Zimbabwe to ensure free and fair elections and respect for human rights.

They later ambushed the Zimbabwean Ambassador as he left Chatham House.

President Guebuza had spoken about how Mozambique was prioritising the fight against poverty. He stressed the importance of good governance.

Alois Mbawara of Free Zim Youth quizzed President Guebuza about Mozambique’s role in SADC (the Southern African Development Community), which is committed to uphold democracy and human rights.

“SADC has previously recognised that the crisis in Zimbabwe is a stumbling block to regional economic prosperity. But Mozambique has failed to uphold the SADC principles of good governance with regard to Zimbabwe,” said Mr Mbawara.

“SADC has promised to appoint a troika team to visit Zimbabwe, but has so far not done so. We want to know who is going, when they are going and what is their remit. Zimbabweans are dying while SADC dithers.

“I asked President Guebuza what is Mozambique’s policy to help solve the Zimbabwean economic and humanitarian disaster; citing the adverse impact on Mozambique of the influx of Zimbabwean refugees.

“The President was evasive. He said Mozambique was ready to play its part in resolving the Zimbabwean crisis, but failed to specify any concrete plan of action by Mozambique or SADC.

“Although President Guebuza was pressed three times to be specific about what SADC would do, he avoided giving any firm commitments. He gave us the brush off.

“Another Free Zim Youth campaigner, Luka Phiri, tried to get an answer from President Guebuza. He said Zimbabwe’s poverty was a world beater, with the lowest life expectancy and the highest inflation. But the President simply reiterated that Mozambique would do its best to assist Zimbabwe, without stating when and what this assistance might involve.

“Among the dignitaries who attended President Guebuza’s lecture was the Zimbabwean Ambassador, Gabriel Machinga. As he left Chatham House, he was ambushed by 10 members of Free Zim Youth.

“On the pavement outside, we surrounded Mr Machinga shouting: ‘Shame on you Machinga’ and held in front of his face a giant banner which read: ‘Mugabe wanted for murder.’

“Mozambique and other SADC countries have a duty to do something concrete to stop the killing in Zimbabwe. We expect support from our African neighbours, not neglect, indifference and evasion.

“During Ian Smith’s era of white minority rule, Mozambique played an important and valued role assisting the Zimbabwe freedom struggle. Now, once again, the people of Zimbabwe need our Mozambican brothers and sisters to help us free ourselves from Mugabe’s tyranny.

“We want a new Zimbabwe where there is democracy, social justice and human rights for all Zimbabweans – not a lawless state where Mugabe’s ZANU-PF cronies get rich and abuse their power at the expense of the people,” said Mr Mbawara.
Power To The People

Further information:

Alois Mbawara, Free Zim Youth: 07960 333 568

Luka Phiri, Free Zim Youth: 07951 293 766
Send instant messages to your online friends http://uk.messenger.yahoo.com

2006-12-05T03:16:00.000+02:00

Awards For Excellence in Science and Technology Reporting

Region :Sub-Saharan Africa
Topic :Fellowships and Awards, Science

By I-JNET
All journalists and freelancers in Africa with relevant work published or broadcast between January 1 and December 8 are eligible to apply for the “2006 Siemens Profile Awards for Journalistic Excellence in the fields of Science and Technology”. Application deadline: December 8.
Siemens Southern Africa is sponsoring the awards, which aim to develop, nurture and advance quality science and technology reporting by encouraging journalists to explain complex issues to their target audience.
Journalists can submit their work to ten different categories including business solutions, communications, energy, industrial solutions in the manufacturing industry, medial solutions, research and development, technology policy and investment, transportation and corporate responsibility.
Submissions should display adequate research, a strong grasp of the subject matter, and a high level of analytical ability.
Prizes include cash and business equipment. The grand prize winner will also receive an all- expenses paid overseas trip. All prize nominees will be invited to an award ceremony in March.
For more information or to apply, email Program Administrator Kim Ferreira at kim@fcbredline.co.za, or visit http://www.profileawards.co.za/.

2006-12-05T03:13:00.000+02:00

Canadian Journalists In Town

Report By Herald
A 10-member delegation of Canadian journalists and tour operators arrived in Zimbabwe for a weeklong tour of the country's resort and tourist centers, local media reported on Monday.
The visit, which is being coordinated by the Zimbabwe Tourism Authority in conjunction with the Zimbabwean Embassy in Canada, seeks to familiarize the Canadian media and tour operators with Zimbabwe's tourist destinations, The Herald said.
The tourism authority's Chief Executive Officer Karikoga Kaseke said the visit was part of his organisation's program, adding that the other purpose of the familiarization program was to instill confidence in the Canadian media crew and tour operators so that they could recognize Zimbabwe as a competitive holiday destination.
As part of the familiarization tour, the Canadian journalists and tour operators would visit Great Zimbabwe, the Antelope Park, Hwange, Matopos, Bulawayo and the Victoria Falls.
The visit followed the re-inclusion of Zimbabwe in the holiday packages by major tour operators in Canada who dropped Zimbabwe from their holiday packages five years ago following the negative publicity the country received from the west.
This year alone, a total of 70 groups visited the country on familiarization tours of which 26 were media houses and 44 tour operators.
Among the groups hosted by the ZTA this year were French opinion leaders, the Chinese BTV crew, Russian journalists and tour operators as well as many other tour operators from Britain.

2006-12-05T03:02:00.000+02:00

Mutambara Gives Churches A Thumbs Down

After a lot of fanfare an publicity, Churches In Zimbabwe led by the likes of Bishop Trevor Manhanga seem not to be gaining any credibility. Zim Journalists is reliably informed that civic society met last week and gave the churches a thumbs down.Other critics of the document have been Archbishop Pius Ncube Here is a statement by rival MDC leader Arthur Mutambara on what he thinks of the contoversial doucment.

On the 28th of November 2006 the MDC leadership met with the Church leaders who are behind the “The Zimbabwe We Want” initiative. This was the first time that our party was engaged in this project. There had been misrepresentations in the press that the Church bishops had met some of our leaders before the launch of the document. This was completely false.

Zimbabwe is going through an economic and political crisis of unprecedented proportions. Any initiative that seeks to foster and develop solutions to this crisis must be supported. Whenever any group of Zimbabweans gets together in pursuit of such initiatives, it must be hailed and encouraged. The state of our country and pain of our people demand nothing less. Consequently, in spite of its initial exclusion from this particular Church initiative, the MDC is solidly supportive and wishes to be actively involved.

In pursuing a national initiative such as the “National Vision for Zimbabwe” it is essential to ensure ownership and buy-in by the generality of the people of Zimbabwe. The people must own both the process and content of the national vision. Furthermore, the process of an initiative cannot be de-linked from its content. A dysfunctional process will lead to distorted and contested content

Process of Achieving the National Vision

It is our submission that the Church leaders’ process in crafting a National Vision for Zimbabwe has been fundamentally flawed. It has been characterized by dishonesty, manipulation, and lack of inclusiveness. A few examples will suffice to illustrate these aspects. Critical stakeholders in the form of civic organizations, political parties, and church organizations (e.g., NCA, Crisis Coalition, MDC, ZCTU, ZINASU, Christian Alliance, National Pastors Conference) were not engaged nor consulted prior to the launch. To compound matters, there were falsehoods in the media, which were never retracted, about some of these groups being consulted. The lack of involvement of key players led to the spectacular failure of the document launch, where it ended being a ZANU(PF) orgy in self indulgency.

In addition, some of those organizations engaged were shown versions of the document that were different from what was eventually launched. This has led to complaints about duplicity and manipulation from the Catholic Jesuits, and Bishop Pius Ncube. The perception is that people and organizations were being used to legitimize a dubious agenda.

The most problematic process aspect of the Church initiative has been the way they have engaged Robert Mugabe and ZANU(PF). From the tea sessions at State House to the launch of the document by Robert Mugabe, the Church leaders have allowed the criminal dictatorship of Robert Mugabe to destroy the potential of the initiative. Mugabe’s ill-advised comments about non-negotiable issues, defence of the Lancaster House constitution, and general disdain for other stakeholders, have compromised the effectiveness of the initiative. In a very cynical way Mugabe embraced the project in order to destroy its credibility, and then unleashed his chief apologists and propagandists to viciously attack the initiative in the state media. What a shameful ploy!

The Church leaders are well-intentioned and their motivation is honourable. However, they have been extremely naïve. With the continuously deteriorating economic malaise and global isolation, Mugabe wants to buy time. He could use the initiative to do just that by appearing to be doing something. The suffering people of Zimbabwe will reject any process that will provide a lifeline to the evil regime of Robert Mugabe. They will not be part of any efforts to sanitize the
Dictator.

Content of the National Vision

The MDC will be submitting a detailed written response to the content of the vision document. Here we outline some preliminary and inconclusive remarks. The general gist of the document is in sync with the views of most Zimbabweans, that is, the material is common cause. However, there are areas characterized by omissions and distortions. Some of the distortions are due to the dysfunctional process through which the initiative has gone. The ugly hand of ZANU(PF) is evident. As already submitted, you cannot separate content from process.

For a start, the vision statement sounds like apple pie and motherhood. There is no economic vision, neither is there a social justice aspect to it. There is no clarity on the economic strategy that will take Zimbabwe from the economic crisis to the Promised Land. The recommendations on the economy are weak, poorly structured and lack congruency. Similarly, the section on land requires more input around collateral value of land, security of tenure, agricultural productivity, secondary agriculture, justice and equity.

A major distortion in the document is around the nature and cause of the Zimbabwean crisis. At the root of our national problems are issues of bad governance, political legitimacy, economic mismanagement, corruption, and political dictatorship, all due to the absolute failure of Robert Mugabe and ZANU(PF). This must be stated without equivocation or ambiguity. The vision document at best equivocates, at worst it is apologetic. Misdiagnosis of a problem will lead to wrong solutions.

It is also astounding that the language of the document is very subdued and apologetic when describing national institutional ills such as POSA and AIPPA. In some cases the diction resembles that of ZANU(PF) in the way issues like patriotism and sanctions are discussed. Presumably these language overtures are meant to placate the dictator, Robert Mugabe. It must be emphasized that this is done at a huge cost: De-legitimization of the content leading to its total rejection by the people of Zimbabwe.

Another area of contention in the document is on the subject of Gukurahundi, which is treated shamelessly as a footnote. There is a celebration of the first 15 years of independence as blissful and full of hope. Yet, it is during this period that the regime of Robert Mugabe massacred over 20 000 civilians in Matabeleland and Midlands. The nation must come to terms with this reality. There must be a Truth and Justice Commission, followed by an acknowledgement of what transpired. Only then can national healing begin. We must seek restorative justice, victim based justice, and rehabilitation of the communities affected. Today there are young people who cannot get birth certificates and identification cards because both parents were killed during Gukurahundi; and it is not officially acknowledged that the parents are dead. These are people being victimized today. Hence no! Gukurahundi cannot be a footnote in a National Vision for Zimbabwe.

A general point about the document is that it lacks time-frames, and prioritization of the different initiatives and recommendations. There must be clarity on what matters are short term, medium term and long term.

The document extensively uses Christian Biblical chapters and verses. This is inappropriate in a national vision document. Even if our country is 90% Christian we still have Moslems, Hindus, and Jews as part of our nation. There are also Zimbabweans who believe in traditional religions. We need religious tolerance in our national vision.

As indicated earlier, our detailed written response on the content is forthcoming.

The Way Forward

In conclusion it is clear that the Church leaders have process and content challenges in their great initiative. It is important that they embrace the critique we have provided above and address relevant matters. Dramatic changes and corrective measures are required, in particular around the process. The initiative has to be wrestled back from ZANU(PF), its credibility re-established, while building buy-in and confidence among disgruntled stakeholders. The success of the initiative will depend solely on the Church leaders doing the right things. As the MDC party, our reservations notwithstanding, we pledge to work closely with the Church leaders without any preconditions. We urge other stakeholders and the generality of the people of Zimbabwe to participate and seek to influence both the process and content of the initiative.

All Zimbabweans must own the National Vision for Zimbabwe.

Defeat is not on the agenda & Victory is certain.

The Struggle Continues Unabated.

Arthur G.O. Mutambara
MDC President

2006-12-04T01:03:00.000+02:00

Green Bombers Earn More Money Than Zimbabwe Cops
By ZimOnline

Zimbabwe Police Commissioner Augustine Chihuri has warned that President Robert Mugabe’s government faced revolt by disgruntled junior security officers following the awarding by Harare of hefty salaries to youths from a controversial national service training programme.
In a confidential memo dated 22 November, a copy of which was seen by ZimOnline at the weekend, Chihuri said morale in the security services had hit rock bottom as the salary discrepancies had caused serious divisions between the security forces and the youths.

The five-page memo entitled "Salary discrepancies need urgent attention" was addressed to Home Affairs Minister Kembo Mohadi and State Security Minister Didymus Mutasa.
“The salaries they earn (national service youths) are more than 20 times what trained junior members of the uniformed forces who pay tax are being given per month and this has not only killed the morale of our members, but also made them more rebellious against the government.
“It is also worrying to note that these youths . . . earn more than three times a Senior Assistant Commissioner of the ZRP (Zimbabwe Republic Police)," reads part of the memo.
The youths, accused by human rights groups and the main opposition Movement for Democratic Change (MDC) party of unleashing terror on government opponents, are said to be earning untaxed monthly salaries of Z$600 000.

A junior officer in the army and police earns a basic monthly salary of Z$27 000, way below the food basket of over Z$104 000.
President Robert Mugabe’s government has since last November been deploying youths from the national service programme in cities and towns to monitor and enforce price controls on selected goods.

There have been reports that the youths had unleashed a reign of terror around the country as they beat up and harassed businessmen and informal traders whom they accused of inflating prices in a bid to sabotage the government.
In the hard-hitting memo which shows that all was not well in the security services, Chihuri warned that if the government failed to address the matter urgently, it could see the junior officers engage “in active rebellion against the government” which they already blame for triggering the economic crisis.

Zimbabwe is in its seventh year of a bitter economic recession that has spawned shortages of almost every basic commodity and the world's highest inflation rate of over 1 000 percent.
The police chief said Mohadi and Mutasa should warn Mugabe of the possibility of a “violent revolt” by junior officers who “feel abandoned.”
"Senior officers have benefited and continue to benefit . . . in various ways, but the juniors, who make up the bulk of the security forces and who are active on the ground are considering themselves as abandoned beings.

“They will not take time to revolt as they already suspect that the government does not trust them as much as it does the youths. It is your duty as ministers responsible for security to convince the President on the urgency of this matter.
“I hope you will play your part," says the memorandum.

Some junior members of the security forces who spoke to ZimOnline at the weekend confirmed that the salary discrepancies had caused a serious rift between security forces and the youths.
"We work harder than them (youths) but at the end of the day they earn more money than us. I tell you most junior members will be leaving in their droves next year because of this, " said a junior member of the army.

Contacted for comment yesterday, Mohadi confirmed receiving the memorandum but refused to divulge any information saying it was a “Top secret” document not meant for the Press.
"I cannot discuss the contents of such a document with the Press because it is a national security issue. All I can tell you is that the government knows that the security forces need a huge salary hike and they will get it in January," he said.
Mutasa could not be reached for comment on the matter

2006-12-04T00:57:00.000+02:00

Statement On The 2007 Budget By The MDC led by Morgan Tsvangirai

Our crisis is bigger than a budget statement can resolve
The 2007 budget statement announced by Hebert Murerwa yesterday represents yet more evidence of the mediocrity, dishonesty and the bankruptcy of ideas of the Zanu PF regime.

More than that, it represents the paralysis in governance arising and connected to the succession issue in Zanu PF. Quite clearly, the decisive pronouncements and the proscribing by Murerwa against the RBZ governor's quasi-fiscal actions is a reflection of the intense civil war that is

taking place in the corridors of Zanu PF.

The economic crisis arresting Zimbabwe is structural and cannot be treated by cosmetic, populist, recycled and neo-liberal measures. We are a failed State, wherein 80 percent of the people are unemployed, real inflation is over 3 000 percent and where 80 percent of the population earn far below the bread-line salary of $180 000. We are a country bedevilled by the complete destruction of the supply side of the economy. For almost 10 years since 1997, the country has endured gross negative growth rates, a phenomenon unkown even in countries that have been at war.

Industry is operating at 25 percent of its normal productive capacity. And at the back of this, the country has seen unmitigated corruption and Zimbabwe has acquired for itself a shameful ranking of 157 out of 159 on the corruption ladder. The quality of life for ordinary Zimbabweans has deteriorated and life expectancy has dropped to 34 years. This is the state of the crisis and any honest budgetary approach should begin by recognising that the causes of the crisis are man-made and they are underpinned by a crisis of governance and a crisis of legitimacy. Blaming the crisis on non-existent sanctions or droughts reflects the perennial dishonesty that has become the national religion of this regime. It reflects a denial mode that results in the government's inability to craft proper and honest solutions to the problems bedevilling the nation.

The pumping of billions of dollars for inputs into the agricultural sector, which has been the norm of all budgets, has clearly failed to revive this critical sector and to restore us to our erstwhile status as the bread-basket of the region. Wrong people, namely Zanu PF chefs and other mobile phone farmers were allocated the land and what has happened is that a noble cause was bastardised by subjective execution.

Equally, the pumping of billions into mining, the creation of a mining fund and the proposed purchase of mining equipment will not resuscitate this sector. For starters, the reason why mining output is decreasing and why gold deliveries have declined is not because there is no production, but because of the massive leakages in the system. In any event, trying to revive an economy such as ours through agriculture and mining is a false premise. The Zanu PF vehicle of accumulation based on agriculture and mining for supply side recovery is a model that was true and correct in the 19th century. Raw materials without any value addition have never been vehicles for growth. It is manufacturing, industry and lately technology, managed in a local, inward-looking framework bereft of any neo-liberal blemish. That will be the starting point.

The model of the Asian tigers, the fantastic growth of China and India are not being spurred by agriculture or mining but by these alternative development paradigms.

The identity of inflation as the number one enemy in Zimbabwe is a reflection of a paralysis of analysis. Inflation is a macro-economic indicator of the relationship between the supply side and the demand side of the economy. It is a symptom of the sickness of the economy but is not the sickness itself. Thus it is important to identify the real causes of inflation. As popular local musician Oliver Mtukudzi would say, " Ongorora chikonzero chaita musoro uteme." Unfortunately, the budget does not take this into account.

The projected 2007 budget deficit as a percentage of Gross Domestic Product is 17 percent. This is a huge deficit considering that the regional average is 3 percent. This budget deficit, and more importantly the way it is financed, will create major inflationary pressures. We have seen in the past how Gono's quasi-fiscal experiments, equalling almost the official 2006 budget, created excess money supply of over 1 000 percent and resulted in a major inflationary push.

Moreover, to have budget in respect of which $1,4 trillion or 35 percent is going to be allocated to salaries alone, is a disaster. When one adds interest payments, it means that almost 80 percent of the budget is recurrent expenditure. Such a scenario is not only sad, but demands that Murerwa and his colleagues must resign. If almost 80 percent of the budget represents salaries and interests, then it means that the critical budgets to health, education and social services, have suffered. Indeed, Murerwa and his colleagues will go to town about the $1,3 trillion (30 percent of the budget) allocated to capital expenditure but what is not disclosed is that the bulk of that money is going to pay for penalties and punitive arrear interests on existing incomplete projects such as the Torkwe-Mukosi dam and the dualisation of the Harare-Bulawayo highway.

The raising of the tax-free threshold from $20 000 to $100 000 will be applauded as being positive. However, the reality is that the majority of the population do not even earn $50 000 per month and the bread-line salary is $180 000 while inflation realistically stands at about 3 000 percent. One cannot even buy anything meaningful with $100 000 in a supermarket.

Zanu PF being Zanu PF, one thing that concerns this regime is power and the desire to reproduce itself legally and extra-legally. No wonder the budget allocation to the army and the police in real terms has grown by more than 50 percent, with the army being allocated an embarassing figure of $225 billion for recurrent expenditure. This slush fund given to "the boys" is more than half the budget allocation to the Ministry of Health and Child Wefare. It's a shame!

One can go forever critiquing the sterile and recycled ideas from Minister Murerwa. The bottom line is that these people are now tired. as Franz Fanon said many years ago, exhausted nationalism is a danger to the national question in Africa. Zanu PF has clearly become a danger to the public good of the majority of Zimbabweans.

Zimbabweans are tired of high-sounding fiscal and monetary policy pronouncements that have failed to stimulate economic growth and to inspire investor confidence in an economy that has become a collective African shame.What Zimbabwe needs is a political solution to the national crisis. What Zimbabwe needs is a new government that has the support and the faith of the ordinary people who have borne the brunt of failed economic policies and a profligate government that continues to live outside its means.

Zimbabwe needs to embrace sweeping political reforms that include a new, people-driven Constitution, free and fair elections under international supervision, a reconstruction and stabilisation programme in a post-transitional era and a period of national healing. Nothing short of this political solution will save our country.
Hon Tendai Biti, MP
MDC Secretary General

2006-12-04T00:50:00.000+02:00

Statement On The 2007 Budget By The MDC led by Arthur Mutambara

Whereas the Budget statements are meant to confirm and take forward the nation’s commitment to prioritise and protect those expenditures that can substantially contribute to economic growth, job creation, and overall poverty reduction, to also contain measures to improve pro-poor service delivery and strengthen public expenditure management, the hopelessness of Zimbabwe’s entire budget exercise and process, in this environment, is again exemplified by the Minister of Finance’s 2007 budget statement.

If the Minister cannot predict what will be the level of public expenditure next month, how then does he intend to predict a whole year expenditure pattern. The bids by the ministries make no sense whatsoever, with or without Gono’s quasi fiscal expenditure forays. So no matter what the Minister of Finance pronounces within the framework of the 2007 budget, by omission or commission his action will lead to more misery and further unprecedented economic decline. This will be the ninth successive decline in GDP since 1998. Is this what the Minister’s budget about, or he is just taking the people of Zimbabwe for a ride? If we judge by the way the economy will go, the Minister should concede that his budget is not a good omen, or else retract and go back to address the country’s fundamentals –stop corruption, restore rule of law and hence restore confidence of the investor in the economy - before presenting what the official press will obviously call a bold budget statement.

The only hint at reducing inflation worthy noting was rescuing away Gono’s appetite for quasi fiscal forays to come under Treasury, at an exorbitant cost of $1000 billion, to the tax payer. The nation is being told that this will bring inflation down to 350-400% by October 2007. But with all the economic fundamentals that brought about the high inflation in place, inflation is unlikely to come down. The allocations and estimates given by the Minister of Finance will continue to be eroded by the inflation pressures, mainly due to lack of production and continued growth of expenditure by this government’s bloated administration.

In the view of the MDC the fundamentals that require attention in order to halt the collapse of the Zimbabwe economy are the following:

Zimbabwe must stop denying the causes of the country’s economic problem and come to terms with itself - seek genuine dialogue with the people of this country.

Engage the people of Zimbabwe (the civil society, business, farmers, workers, churches) on fiscal policy, development of the economy and democratic rights of citizens.
Move away from the position of sustained macro-economic mismanagement and adopt a sound macroeconomic policies aimed at curbing inflation and laying the foundation for economic recovery.

Refrain from bad governance – asset stripping and corruption and looting of state owned enterprises and assets and engage the nation towards achieving of MDGs in order to reduce poverty.

Stop all forms of violent disruptions of the normal economic activities, lack of commitment to transparency, accountability, respect for human rights and democratic processes.

Any budget speech that ignores this framework continues to be self delusion and a joke for the people whose pain deepens especially immediately as a result of tinkering at the edges of a sick Zimbabwe economic body in national budget statements.

Priscilla Misihairabwi-Mushonga
Deputy Secretary General

2006-12-04T00:45:00.002+02:00

Part 11 Of 2007 Budget
297. In this environment, it becomes necessary that Government prioritises the mobilisation of both public and private capital for national housing over the coming years in conjunction with other stakeholders, including the private sector. This will also move resources away from speculative ventures and direct investment into the real sector, thereby stimulating growth of the economy.

298. Consultations with the insurance and pension industry have identified the use of indexed financial instruments to allow pension funds to invest in prescribed assets that will facilitate investment into housing, affordable to workers.

299. I will expect our National Social Security Authority to play a significant role in the provision of affordable houses to the workers.

300. Mr Speaker Sir, in support of this innovative way to attract capital into the housing market and broaden access to property ownership, Government is reviewing the relevant legislative framework, in consultation with the Insurance and Pension Funds.

Social Protection

301. Mr Speaker Sir, stakeholder consultations also raised concern that the less vocal groups, who include the poorest, remain marginalised in the allocation of public resources, notwithstanding their level of vulnerability to the prevailing economic hardships.

302. Mr Speaker Sir, recent poverty assessments indicate increased levels of vulnerability in the country, especially among the marginalised groups who require both social protection and empowerment. In the case of children, it is estimated that there are over 1 500 000 orphaned and vulnerable children that are in need of protection.

Targeting Social Protection

303. The high incidences of poverty and vulnerability require that we strengthen and streamline our National Social Protection Safety Nets and Programmes. There is need to target the vulnerable groups, focussing transfers to the elderly, orphans, and the physically challenged. Public works programmes in both urban and rural areas will be targeted at the unemployed and able-bodied.

Social Welfare

304. Mr Speaker Sir, in order to cushion the elderly and physically challenged members of our society against rising inflation, I am proposing to review upwards the protection rates currently ranging between $60 and $250 per month.

305. I therefore propose in the 2007 Budget to increase the allocation to support Social Protection Programmes. This allocation also allows for the review of the current protection rates, ranging from $60 to $250 per month, taking account of the changes in inflation.

306. I further propose to allocate $18.7 billion towards the administration of social protection programmes, including provision of transport to facilitate mobility.

Basic Education Assistance Module

307. Mr Speaker Sir, over and above other social protection requirements, orphaned and vulnerable children of school-going age also require social protection through such programmes as the Basic Education Assistance Module (BEAM). I therefore propose to allocate $5.5 billion. for education assistance programmes.

308. It will also be critical that the Department of Social Services undertakes the necessary awareness campaigns of such protection programmes as BEAM, especially in rural areas.

People Living with HIV/AIDS

309. Mr Speaker Sir, the estimated over 600 000 people living with HIV/AIDS also face many challenges. These include financial difficulties to purchase anti-retro viral drugs (ARVs) which remain beyond the reach of many.

310. This is in spite of efforts to make them more affordable through support for local production initiatives by some of our pharmaceutical companies. Those able to access ARVs face the added challenge of sustaining the commensurate nutritional requirements.

311. Government has therefore, targeted resources under the 3% AIDS levy towards supporting our people living with HIV/AIDS under the coordination of the National AIDS Council.

312. I therefore propose to maintain the 3% AIDS levy in support of members of our society living with HIV/AIDS.

313. While concerns that a disproportionate share of these resources is being spent on administration, rather than supporting people living with HIV/AIDS, are being addressed by the Ministry of Health and Child Welfare, I propose that, with immediate effect, at least 70% of the collections under the AIDS Levy be earmarked for the purchase of Anti-retroviral drugs.

Public Works Programmes

314. Mr Speaker Sir, I have already made reference to the need to avoid direct cash transfer interventions, whether non-conditional or conditional, to those members of our society who remain able-bodied.

315. This stance by Government has seen us in the past support budget allocations for social protection in years of wider scale vulnerability, such as during a drought, through such public works programmes as ‘food or money for work’. Consistent with this, I propose to allocate $1.2 billion towards public works programmes during 2007.

Empowerment

316. Mr. Speaker Sir, in the prevailing environment of hyper-inflation and declining economic activity, the numbers of the unemployed groups continues to swell.

317. This, over and above social alleviation interventions, necessitates further Government support for income and employment generating programmes targeted at empowering the youth, women, and the poor, among others. These empowerment programmes should also mainstream disability, through support for the physically challenged.

318. The need to support empowerment programmes is also in recognition of communities as hubs of employment creation and income generation through various community based programmes and projects. Hence, these require continued support in line with the poverty reduction thrust of the Millennium Development Goals.

Youth Fund

319. Youths constitute 67% of our population, with around 400 000 leaving schools every year. The formal sector absorbs only 10% of these school leavers, resulting in a large number being unemployed.

320. Having realised the employment creation and income generating potential, Government through the Infrastructure Development Bank has set up a Youth Development Fund to avail capital to those projects that have been identified as highly productive.

321. I therefore propose to allocate $10 million as an additional capital injection into the Youth Development Fund administered by the Ministry of Youth Development and Employment Creation through the Infrastructure Development Bank.

Mainstreaming Disability in Budgeting

322. Mr Speaker Sir, I have already alluded to the need for an all embracive empowerment strategy, with programmes also targeted at the physically challenged members of our communities. This is in recognition of the fact that disability should never be viewed as inability, and hence the need for charity. This results in the marginalisation of the physically challenged.

323. Empowering the physically challenged remains a socio-economic development challenge in our economy. As such, our development programmes should mainstream disability, and also target at empowering this group.

324. I therefore propose to allocate $1.0 billion towards supporting income and employment generating projects of the physically challenged.

Small & Medium Enterprises

325. Mr Speaker Sir, the role of Small to Medium Enterprises (SMEs) in inculcating entrepreneurship skills, employment creation and poverty alleviation, as well as foreign currency generation, is recognised worldwide. SMEs have played a significant role in sustaining India’s high growth rates.

326. Supporting the development of SMEs is part of our economic development strategy. SMEs play a critical role in the beneficiation of local raw materials, and are an important tool for our empowerment and indigenisation programmes. They also play a significant role in ensuring the participation of women in the mainstream of our economy.

327. The graduation of many informal businesses into formal SMEs provides greater scope for access to formal banking lending programmes. In this regard, allow me to recognise the efforts of the Reserve Bank in coordinating the overall banking and financial sector to support initiatives targeted at the development of SMEs.

328. Already, many of our banking institutions have established dedicated units that offer financial support to SMEs. Financial support to SMEs is receiving a boost from resources being availed under the recently launched concessionary $16 billion Reserve Bank facility for on-lending by banks to SMEs.

329. Mr Speaker Sir, urban based SMEs have taken greater advantage of this financial sector support, necessitating Budget intervention largely targeted at the rural areas as well. Already, through the 2006 Budget, I provided $200 million in support of SMEs in rural areas through SEDCO under our Growth Points Resuscitation Programme (GPRP).

330. Mr Speaker Sir, notwithstanding that the Small Enterprise Development Corporation (SEDCO) was established by Government to spearhead the development of SMEs through provision of business loans and business development services, it has been failing to fulfil this mandate partly as a result of under-capitalisation.

331. While the corporation has supported some SMEs across all sectors of the economy in both rural and urban centres with 80% recovery rates, critical micro lending programmes have remained under-funded. I, therefore, propose to provide $54.3 billion towards the recapitalisation of SEDCO.

332. These resources will support the following programmes:

Table 2: SEDCO Support Facilities and Programmes
Programme/Facility Amount
Lending $40 billion
Business Infrastructure Development $8 billion
Capacity Building $0.8 million
Integrated Skills Outreach Programme $3 billion
Capital Expenditure $1.5 billion
Work Related Programme $1 billion

333. Successful utilisation of these resources through ventures in agro-based and other manufacturing activities should reduce the prevailing rural-urban migration pressure, as formal job market opportunities also arise at growth points and rural service centres. Surveys undertaken so far indicate successful inroads into milling, soap production, fence making, hardware supplies, furniture making and other activities.

334. Mr Speaker Sir, the provision of resources to rural based SMEs will contribute to increased economic activity in rural areas. This also enhances the scope for upgrading the existing infrastructure such as rural road networks, electricity, water, housing, schools and health care facilities.

Accountability over Public Resources

335. Mr Speaker Sir, limited Budget resources warrant strengthening systems of accountability over the efficient and effective use of public funds and property.

336. Honourable Members will be aware that Ministries and Departments, as well as our Local Authorities and Public Enterprises are often vocal in their references to inadequate provision and access to budgetary and other scarce public resources.

337. Mr Speaker Sir, we all aware that our economy is under siege. This calls for the efficient use of the scarce domestic and foreign resources. We also need to fully account for the use of these resources in a transparent manner and to avoid the abuse of such resources. This is critical to our economic survival as a Nation under sanctions.

338. Mr Speaker Sir, we cannot therefore continue operating in our ‘business as usual’ manner, tolerating wasteful use of resources, and imprudence in the utilisation of the scarce public resources. This, Honourable Members, can only worsen our economic situation and exacerbate inflation.

339. Dealing with inefficiencies in the utilisation of public resources and assets, requires the review of the financial management legal framework, and the introduction of penalties for non-compliance. I will, Mr Speaker Sir, therefore be proposing a new Public Finance Management Bill for the consideration of Honourable Members.

Public Finance Management

340. The proposed Public Finance Management legislation, once approved and assented to, will compel Ministries to take charge of their own accounts and produce their own reports, which would be tabled in Parliament. Furthermore, this will require them to produce financial reports for their respective Parastatals at the end of each financial period. This will improve accountability and enhance efficiency in the use of public resources.

Audit

341. It has also been observed that Government has not been producing audited financial statements, as line Ministries are failing to produce final accounts for the Comptroller & Auditor General's report.

342. I therefore also propose the introduction of the Audit Bill which seeks to improve accountability in the audit process, and eliminate the operational limitations inherent in the existing Audit & Exchequer Act.

Institutions of Government

343. Mr Speaker Sir, the successful formulation and implementation of Budget programmes critically depends on ensuring that Government institutions are operating efficiently and effectively.

344. The many instances where Memorandum of Understandings (M.O.Us) are entered into and concluded by Ministries in the absence of proper coordination and due regard to established institutional processes are not conducive to the effective operations of Government.

345. Mr Speaker Sir, such behaviour by line Ministries which do not fully comply and recognise established institutional processes will not be tolerated anymore.

Operations & Maintenance

346. Mr Speaker Sir, the 2007 Budget will also have to contend with the deteriorating public infrastructure, both in rural and urban areas. Major pressure areas relate to the rehabilitation of roads, bridges, dip tanks, schools, and health facilities, among others.

347. To sustain operations and maintenance requirements of Ministries and improve capacity to deliver essential services necessary for economic recovery, I propose to allocate a total amount of $736.5 billion for operations and maintenance.

Maintenance

348. Mr Speaker Sir, timely and adequate maintenance will be necessary if we are to benefit longer usage of the assets and infrastructure already acquired. To this end, there is need to ensure that funds are set aside for the maintenance of Government buildings, plant and equipment. I therefore propose the provision of $69.3 billion for this purpose. The Ministries of Local Government, Public Works and Urban Development and that of Rural Housing and Social Amenities are jointly driving the maintenance programme.

Grants and Transfers

349. I have made provision of $329 billion for employment costs with respect to Grant Aided Institutions in line with adjustments assumed across the Civil Service.

350. Furthermore, I have also made provision of $308 billion for operational expenses for these institutions.

Street Children Fund

351. Mr Speaker Sir, recognising the plight of children living on the streets, Government took the initiative to establish a Fund to act as a vehicle towards such children’s rehabilitation and development.

352. I am happy to advise Honourable Members that all the steps necessary for the setting up of the Fund have been fulfilled. To this end, I propose to set aside an amount of $1 billion as initial injection into the Fund. The Minister of Public Service, Labour and Social Welfare whose Ministry is charged with managing the Fund will lead further steps into the realisation of the objectives of the Fund.

Capital Budget

353. Mr Speaker Sir, stakeholders raised concern over the current structure of public expenditures, where infrastructure development is not sufficiently resourced to facilitate positive supply response. They cited the poor state of public infrastructure such as roads, incomplete dam projects, and other facilities.

354. Observations that the low Budget allocations for infrastructure projects have often been affected by the accommodation of previously unbudgeted recurrent expenditures were also made during these consultations. The little resources left for capital development are spread too thinly to make meaningful impact. This results in most Ministries being incapacitated to complete projects on time, undermining capital formation for economic growth and development.

355. This poses the challenge of increasing the capital budget and tightening controls on containing unplanned recurrent expenditure demands, some of which are not always related to emergencies and are often deferrable.

356. Mr Speaker Sir, in rationalising Ministries’ expenditure bids, I indicated my proposal to avail $1.5 trillion in support of the capital budget. This represents 24.4% of the overall expenditure level, in line with the Cabinet recommendation.

357. To avoid situations where allocations may not correspond to requirements to enable full project implementation, I have prioritised the completion of some on-going projects. This entails that some of the on-going projects will have to be postponed in order to redirect resources to those projects that are likely to be completed in 2007.

358. I have also availed $8 billion to the Infrastructure Development Bank as part of its capitalisation.

Road & Bridges Infrastructure

359. Mr Speaker Sir, Government shares in the concerns of our people over the poor state of our road infrastructure. The deterioration in the roads infrastructure to a state where most is in need of rehabilitation is explained by the limited availability of equipment and the critical human resource skills coupled with the high cost of construction.

360. The unit costs for road maintenance activities range from $2.255 million per kilometre to $10.249 million for periodic resealing maintenance. In the case of road construction to surfaced standard, we need $80 million per kilometre of road.

Road Maintenance & Rehabilitation

361. The funding requirement for our 2007 annual road maintenance programme is, therefore, estimated by the Zimbabwe National Road Administration (ZINARA) at $24.1 billion. Programmed works include resealing a total of 385 kilometres at a cost of $4 billion, re-gravelling 965 kilometres at a cost of $10.3 billion and 385 kilometres of pothole patching at a cost of $868 million. The balance of $8 billion and $1.1 billion relates to motorised grading routine maintenance, and grass cutting, respectively.

362. Honourable Members will be aware of the role of ZINARA in supporting the maintenance of both our trunk roads and recently, some of the major arteries into our towns and cities. ZINARA, which funds the Department of Roads, also finances roads for 59 Rural District Councils, 30 Urban Councils and the DDF network, thereby facilitating local authorities’ road maintenance programmes through financial support.

363. Mr Speaker Sir, local authorities have at times failed to expeditiously utilise ZINARA road maintenance resources on account of lack of capacity to prepare programme of works documents as well as failure to account for prior disbursements.

364. In doing all this, ZINARA is currently funded through the 5% fuel levy collected on the landed import price of fuel. This, however, is now inadequate to support the extensive road maintenance programme facing us both for the trunk roads and the major arteries into the urban centres.

365. Through the 2007 Budget, Government would want all roads authorities to register some tangible progress in rehabilitation and development of the roads infrastructure.

366. I propose to allocate $10 billion specifically targeted at pothole patching and resealing of some of the major roads in the residential areas of our cities and towns. This will also cover the main entry and exit access into our growth points.

367. With regards to the rural roads, I propose to allocate $4 billion through the District Development Fund.

368. These budgetary resources will compliment the contributions coming through ZINARA.

Rural Electrification

369. Mr Speaker Sir, Honourable Members are aware of Government’s establishment of the Rural Electrification Agency (REA) to spearhead rapid and equitable electrification of our rural areas through extending the electricity grid and promoting productive use of electricity in irrigation and cottage industries, thereby empowering rural communities.

370. While this was to be funded primarily through the 6% levy on all electricity consumers, the income from the levy has, however, remained inadequate for grid expansion. For 2007, the levy would raise only $13.9 billion, against a requirement of $128 billion to complete the targeted 1 000 projects. The overall backlog is 1 300 projects.

371. Furthermore, for the electricity end-use infrastructure development programme, four pilot schools milling projects carried out so far confirm that rural schools can engage in viable projects. Hence the Agency intends to develop 24 schools irrigation schemes and 58 schools milling projects at a cost $5 billion during 2007.

372. I propose to allocate $100.billion directly to village communities that want to take advantage of the electricity end-use infrastructure development by venturing into irrigation projects.

373. Given the huge resources required for the rural electrification programme and the projected deficit in domestic power generation, Government together with the private sector will vigorously promote the development of solar energy in the rural areas. The local manufacture of solar panels will be promoted through the provision of fiscal and monetary incentives.

Telecommunications

374. Mr Speaker Sir, increasing investment in mobile telecommunication across our urban, as well as expansion being made into our outlying rural areas, are enhancing access to communication and information throughout the country.

375. Further expansion in the next few years by the mobile networks should progressively raise the penetration rate of mobile phones to regional best practices of close to 50% of the population. New developments are set to see more base stations being put up, as the industry embraces the introduction of wireless and broadband internet access technology.

376. It is therefore critical that Government and cooperating partners support these expansion initiatives by the telecommunication industry, including the provision of foreign currency to import modern equipment and technology.

Water Projects

377. Mr Speaker Sir, notwithstanding the fact that in per capita terms, we are among those countries with the largest water bodies, there are still many areas where we need to construct more dams, especially in light of the challenges over irrigation.

378. In this regard, ZINWA has approved the construction of new dams in support of irrigation.

379. However, owing to resource and other capacity constraints, it remains necessary that we prioritise the completion of ongoing dam construction projects before undertaking new ones.

380. I therefore propose to allocate $127.1 billion for the following dams:

Public Private Partnerships

381. Mr Speaker Sir, Government cannot finance the maintenance and development of all public infrastructure from its own resources. There is therefore need to involve the private sector in the development of infrastructure.

382. Embracing broader stakeholder participation in infrastructure development projects requires the finalisation of the legal and institutional framework for Public Private Partnerships (PPPs), as well as incentives and special dispensations for the private sector.

383. Government has already put in place operational guidelines which are meant to promote and facilitate the implementation of PPPs in infrastructure development. While a number of projects are under consideration, the overall implementation progress has been slow owing to the absence of effective institutional and legal arrangements among other factors.

384. The finalisation of the institutional and legal arrangements will facilitate quicker approvals, effective co-ordination, implementation and monitoring of all PPPs.

Called Up Guaranteed Loans

385. Providing resources for non-performing called up guaranteed loans of Parastatals can only undermine the availability of resources for other critical budget requirements. With immediate effect, Parastatals will, therefore, be called upon to honour their loan obligations from their revenue.

2007 Budget Management

386. Mr Speaker Sir, the Budget Estimates I am presenting are fairly large. It is therefore critical that Accounting Officers exercise due diligence in the management of resources placed under their stewardship.

387. In order to ensure that execution of this Budget is in a manner consistent with revenue inflows, budget releases by Treasury will adhere to the available cashflows. Where accountability is not demonstrated, budget releases will be withheld.

388. In the case of funds budgeted for acquisition of furniture, vehicles and equipment, releases shall be subject to recording of assets under the Public Finance Management system and production of reports thereof.

389. Line Ministries will also be expected not to embark on any expansion, but limit spending levels within budget provisions.

Public Procurement

390. Timely completion of projects also requires tighter monitoring of programmes of Ministries in line with the principles of Results Based Budgeting. Delays in procurement and project implementation in an environment of high inflation ultimately leads to higher risks of increased costs and non-implementation.

391. Hence, ensuring that Government institutions are operating effectively, will require that we improve on the current delays related to our existing procurement systems and procedures.

392. In the interim, the tender value limits have been reviewed upwards as follows:

• For Competitive Quotations, from $1 million to $4 million;

• For Informal Tenders, from between $1 - $6 million to $4 - $20 million; and that

• Formal Tender procedures now only apply to all tenders above $20 million.

Domestic Debt Restructuring

393. The high budget deficits which have been financed mainly from domestic sources, have resulted in the accumulation of a huge and unsustainable public domestic debt overhang, which is currently close to $153 billion or about 15% of GDP.

394. Over 98.5% of this is in the form of very short term Treasury Bill borrowings of less than one year maturity.

395. Such a debt structure calls for the restructuring of domestic debt and the adoption of Budget financing strategies which limit the rapid expansion of the debt.

396. In this regard, a programme to restructure domestic public debt is being put in place in order to minimise the debt service burden on the fiscus. This includes the restructuring of debt with a view to transforming the bulk of existing debt into medium to long term tenors. A critical requirement for this restructuring process would be the introduction of adequate instruments with prescribed asset status.

397. This will allow players in the Insurance and Pension Fund industry to meaningfully contribute to the debt restructuring programme.

Savings & Investment

398. Savings are important for growth and prosperity because they provide a pool of investment capital for new and growing businesses. For the past six years, our savings and investment growth rates have remained below 10%. Such low levels cannot support the desired economic growth of between 5 – 7% consistent with the Millennium Development Goals.

399. Government has therefore prioritised the promotion of investment to sustain the above growth targets. However, the Zimbabwe Investment Centre and the Export Processing Zones Authority, which are mandated to promote investment are undergoing institutional re-organisation to enhance their capacity and focus.

400. Therefore the ongoing reforms that seek to amalgamate these institutions into a one stop centre, need to be buttressed together with a review of all inward investment approval procedures, so as to remove the administrative burden on applicants. The formation of the Zimbabwe Investment Authority will result in much more efficient approval processes and systems for inward investments.

401. Furthermore, in order to attract and give confidence to foreign investors, Government is fully committed to honouring all its international obligations under various protocols and international agreements including the Bilateral Investment Promotion & Protection Agreements (BIPPAs).

VIII. REVENUE PROPOSALS

402. Mr Speaker Sir, I have already made reference to the need for us to relate the 2007 Budget expenditure allocations that I have announced to the capacity of our economy to finance them. This, Mr Speaker Sir, makes resort to new tax measures unavoidable.

403. The reliance on revenue is also in recognition of the reality that we are on our own, as foreign financing inflows have largely dried up.

404. Consistent with these submissions, the thrust of my tax proposals, Mr Speaker Sir, are broadly focused on the following:

• targeting taxation at consumptive activities, rather than on production;
• supporting the productive and export sectors;
• enhancing disposable income in the hands of the taxpayer, thereby stimulating aggregate demand;
• sharing the tax burden by widening the tax base through presumptive tax targeted at those outside the tax net and tightening tax loopholes;
• rationalisation of VAT zero-rating and exemptions, in line with regional best practices; and
• relating the level of fees and charges to the cost of delivering public services.

405. Allow me, Mr Speaker Sir, to therefore submit the proposals for the consideration of the House. The formulation of some of these proposals has benefited from the valuable input of Honourable Members, as well as those of business, labour and ordinary citizens, during the pre-Budget consultations.

406. A major input that came out from the pre-Budget consultations across the country was the need for the Budget to take account of the effect of the prevailing high inflation on the real value of incomes. In line with this, I will be proposing some relief measures, taking account of bracket creep.

Tax Relief Measures

Income Tax

Pay As You Earn (PAYE)

407. Honourable Members will recall that during the Mid-Term Fiscal Review, the tax free threshold and tax bands were reviewed in July 2006 to cushion employees from the erosion of incomes arising from high inflation.

408. Mr Speaker Sir, inflation, has remained high, thereby, making further reviews from January 2007 necessary.

409. Government is aware of the growing salary gap between management and shop floor workers. The current tax structure is however not reflecting this income disparity where, low and high incomes of $54 000 and $600 000 per month respectively, are subject to the same marginal tax rate of 35%.

410. I therefore propose to raise the tax free threshold from $20,000 to $100 000 per month and spread the tax bands to end at $1 million above which income is taxed at a rate of 35%. Accelerated rates of tax will apply on incomes above $1 million.

411. These measures take effect from January 1, 2007.

412. I have already alluded to the need for me to report to Parliament on a quarterly basis the progress with the implementation of the 2007 Budget. This, Mr Speaker Sir, will present an opportunity for me to consider any necessary reviews to the tax free thresholds.

Bonus Payments and Performance Related Awards

413. Bonus payments and performance related awards to employees are a welcome source of additional income for taxpayers, especially during the festive season and end of year for parents’ preparations for the new school term requirements.

414. I therefore, propose to increase the tax free bonus from the current $20,000 to $100,000 with effect from November 1, 2006. This measure will release about $430 million to taxpayers.

Tax Credits

415. Mr Speaker Sir, tax credits reduce the tax liability of the elderly, blind and physically challenged members of our society, thereby assisting them to meet their special needs.

416. I, therefore, propose to increase tax credits for the elderly, blind and physically challenged from $1,000 to $10,000 per month, with effect from January 1, 2007.

Rental and Investment Income Earned By Elderly Taxpayers

417. Furthermore, in support of the welfare of elderly taxpayers’ dependent on rental and investment income, I propose to review upwards the exempt portion of such income from $12,000 to $112,000 per month.

418. Furthermore, I propose to widen the definition of investments, to include fixed term investments, in line with stakeholder submissions during the pre-Budget consultations.

419. These measures take effect from January 1, 2007.

Tax Free Pension Contribution

420. Mr. Speaker Sir, pension contributions have remained a major source of domestic savings, hence, the need for tax incentives in support of pension schemes. Central to this has been the tax free pension contribution threshold, currently at $6 000 per month.

421. In the prevailing high inflation environment, this threshold has lost value, especially for those contributing to both the compulsory NSSA scheme, as well as to private schemes, whose viability is now under serious threat.

422. I therefore propose to review the tax deductible limit on pension contributions from $6 000 to $75 000 to allow workers’ contributions to both the compulsory NSSA Scheme and the voluntary private pension schemes to benefit from this pension contribution tax deduction.

423. This is with effect from January 1, 2007.

Retrenchment/ Severance Packages

424. In order to support meaningful investment by retrenchees, it is important that in the prevailing high inflation environment our Budget tax measures target to maintain the real value of the non-taxable portion of retrenchment packages.

425. With effect from December 1, 2006, I propose to increase the non-taxable portion of retrenchment package from the greater of $1 million or one third of the retrenchment package, up to $1.5 million to the greater of $25 million or one third of the retrenchment package, up to $100 million.

Capital Allowances

426. Government efforts to assist companies engaged in expansion projects continue to be hampered by the continued erosion of capital allowances due to high inflation.

427. In this respect, I propose to increase the value of capital allowances with effect from 1 January 2007, as follows:

• passenger motor vehicles from $1 million to $10 million
• staff housing from $1,500,000 to $16 million

Donations to Schools, Hospitals & Clinics and Research and Development

428. Mr. Speaker Sir, Government is facing challenges in mobilising adequate resources to support health, education and research & development facilities. Individuals and private institutions are, therefore, encouraged to donate to schools, hospitals and research and development.

429. I, therefore, propose to increase allowable donations from $500 000 to $25 million with effect from January 1, 2007.

430. I further propose to increase allowable deductions for attending conventions or trade missions from $10 000 to $1 million with effect from January 1, 2007.

Corporate Tax Payment System

431. Mr Speaker Sir, Honourable Members will be aware that corporates are now taxed under the contemporaneous arrangement wherein we tax their profits in the year in which they are earned. Hence for 2007, the current legislation requires them to make quarterly payments of 10% in March, 40% in June, 40% in September and 10% in December on the year’s estimated profit, with a 10% margin of error allowed.

432. However, in the prevailing unstable macro-economic environment, many companies continue to face a volatile business production and trading environment.

433. I therefore propose to waive penalties under circumstances where corporates fail to forecast profits within 10% margin of error. Interest on outstanding tax payable will however remain payable. ZIMRA will also support companies in improving on their estimations of corporate profits.

434. Furthermore, in order to support improved cash flow positions of corporates, I propose to review quarterly corporate tax payments on taxable income for 2007 as follows:

Table 3: 2007 Quarterly Corporate Tax Payments
From To
March 25 2007 10% 10%
June 25 2007 40% 25%
September 25 2007 40% 30%
December 20 2007 10% 35%

Small Business Enterprises

435. Government recognizes the significant contribution of Small and Medium Scale Enterprises (SMEs) to the growth of the economy. The current tax regime does not however, grant any tax incentives specific to this category of entrepreneurs.

436. In order to support the initiatives of SMEs, I propose to grant special initial allowance of 150% on the cost of any plant and machinery acquired and brought into use for the first time in the business operations.

437. This measure takes effect from January 1, 2007.

Capital Gains Tax

438. Mr. Speaker Sir, capital gains tax applies on disposal of immovable property and marketable securities not registered on the stock exchange. Capital gains on sale of assets are ascertained after adjustment for an allowance for inflation. Other deductions such as cost of improving the property are also allowed in arriving at the taxable gain.

439. The inflation indexation allowance adjusts gains for the effects of inflation by giving an allowance equal to the amount by which the cost of the asset would have risen on a monthly basis if its value had kept pace with inflation, as measured by the increase in the consumer price index since the asset was acquired.

440. Currently, the inflation allowance is calculated using the annual average consumer price index for every year the asset is held.

441. I propose that the inflation allowance be calculated using the difference between the all items consumer price index (CPI) in the month of disposal and purchase, divided by the consumer price index for the month of purchase. The inflation allowance will similarly be calculated in respect of improvements.

442. This measure takes effect from January 1, 2007.

443. The proposed method of calculation is in line with international best practices.

Roll-Over Provisions

444. A taxpayer is allowed to rollover the proceeds of a principal private residence disposed in order to acquire another principal private residence. These provisions however, do not apply where a taxpayer disposes an undeveloped residential stand in order to acquire another stand.

445. In view of the hardships currently faced by taxpayers in developing residential stands, I propose to extend the roll-over provisions currently applied on principal private residence to residential stands with effect from January 1, 2007.

446. However, this measure will not apply to taxpayers who own residential properties and can benefit from roll-over provisions of such properties, on disposal.

Tax Reserve Certificates

447. Some taxpayers use Tax Reserve Certificates in order to settle their tax debts when they are due. Interest earned on Tax Reserve Certificates deposited with the Commissioner General is fixed and also exempt from withholding tax on interest. The current interest rate of 21.75%, which was put in place many years ago, hence has lagged behind the current market rates.

448. In order to enhance the attractiveness of the Tax Reserve Certificate as an advance tax payment instrument, I propose to review the current rate of interest from 21.7% to the average monthly Treasury Bill Rate with effect from January 1, 2007.

Value Added Tax

VAT on Agricultural Equipment

449. Mr. Speaker Sir, in order to support agricultural activities and boost productivity under the Land Reform Programme, Government extended VAT exemption to agricultural equipment.

450. However, stakeholders raised concern that the VAT exemption on agricultural equipment reduced the competitiveness of locally manufactured equipment. VAT input tax incurred on inputs into the production process can not be claimed if the finished product is exempt.

451. In order to level the playing field between locally manufactured and imported agricultural equipment, whilst providing the necessary support to the agricultural sector, I propose that exempted agricultural equipment be zero-rated for VAT purposes with effect from January 1, 2007.

VAT on Pipeline Transportation Service

452. Mr. Speaker Sir, importation of fuel by road transport is causing severe damage to the road network. There is therefore need for incentives to encourage use of the pipeline.

453. In order to encourage use of the pipeline, I propose to zero rate pipeline services with effect from January 1, 2007.

VAT Exemption on Pension Fund Administration Services

454. In recognition of the role of Pension Funds as a vehicle for mobilising savings, VAT does not arise on services offered by an actuary, insurance agent or insurance broker as defined in the Insurance Act, to the extent that those services are rendered to or on behalf of an insurer or a Pension Fund registered under the Pension and Provident Act.

455. Recent developments in the financial sector are such that the business of fund administrators is no longer restricted to institutions defined in the Insurance Act. Services offered by an independent Pension Fund administrator are however, not exempt from VAT.

456. I, therefore, propose to extend VAT exemption to services offered by independent Pension Fund administrators to the extent that those services are rendered to or on behalf of a Pension Fund registered under the Pension and Provident Funds Act.

Customs Duty

Customs Duty on Raw materials

457. Mr. Speaker Sir, Government’s thrust to enhance capacity utilisation of companies necessitates a reduction of costs which include duties on raw materials and capital equipment among others.

458. In this regard, I propose to provide relief to selected items of raw materials through duty reduction, with effect from January 1, 2007.

Ports of Entry Clearance of Goods

459. Mr Speaker Sir, traders raised concern over challenges of clearing their goods, especially during weekends, and after 1200 hours, when Real Time Gross Settlement (RTGS) transactions become unavailable.

460. Requests for alternative payment methods have therefore been submitted, notwithstanding the existence of pre-clearance facilities which allow goods to be cleared before they arrive at the port of entry.

461. The Reserve Bank is aware of these concerns and is monitoring the situation in conjunction with banking institutions, ZIMRA, and freight agencies.

Estate Duty

462. Currently, the principal residential property is exempt from estate duty. Furthermore, there is a tax free estate duty of $10 million above which a maximum duty of 5% is levied on any additional property.

463. I propose to raise the tax free threshold to $100 million.

Use of Technology in Tax Collection

464. Harmonisation of standards and regulations relating to trade and tax administration is central to achievement of regional integration. The SADC model Customs Act, when adopted will fully address harmonisation issues such as electronic submission of information to tax authorities.

465. Information processing using the traditional manual system is associated with delays, thereby impacting negatively on businesses operations and revenue collection.

466. In order to embrace technological advancements in line with international best practice, I propose that the relevant provisions of the revenue Acts administered by ZIMRA be amended to facilitate the application of information technology in areas such as the filing of returns electronically, registration of taxpayers and use of digital signatures among others.

Learning Material

467. Mr Speaker Sir, Government has always gone out of its way to support the development of human resources, both through direct budgetary allocation towards education and indirectly through provision of targeted tax relief measures.

468. Currently educational material is exempt from import duties as well as VAT. Furthermore, importation of school requisites is catered for through a duty free certificate issued by the Minister responsible for education.

469. Government remains committed to providing affordable education, and in this regard, stakeholders are thus invited to advise on cases where taxes are being paid on educational material.

Registrar for the Fiscal Appeal Court

470. Mr Speaker Sir, the current practice where a Legal practitioner employed by ZIMRA can be appointed as Registrar for the Fiscal Appeal Court presents potential for conflict of interest.

471. I therefore propose that legal practitioners employed by ZIMRA be relieved of the duty to act as Registrar of the Fiscal Appeal Court.

Housing Delivery

472. Consultations with the insurance and pension industry have identified the use of indexed financial instruments to allow pension funds to invest in prescribed assets that will facilitate investment into property, affordable to workers. Indexation to wages would allow workers to make repayments that rise in line with their incomes.

473. Mr Speaker Sir, in support of this innovative way to attract capital into the housing market and broaden access to property ownership Government is reviewing the relevant legislative framework, in consultation with the Insurance and Pension Funds. Some of the proposals made will incentivise investors, while protecting the interests of prospective home owners upon implementation.

Revenue Enhancing Measures

Withholding Taxes

Director’s Fees

474. Tax on fees payable to non-executive Directors is, in most cases, only remitted after assessment, resulting in loss of value due to deferment of the payment of tax.

475. I, therefore, propose to subject fees earned by non-executive Directors to withholding tax at a rate of 20%, with effect from January 1, 2007, in line with practice elsewhere in the SADC region.

Tenders, Consultancy and Other Services

476. The Income Tax Act provides for withholding tax of 10% on the value of tenders above $5 000 awarded through the State Procurement Board. The withholding tax is also levied on consultancy and other services offered to Government and quasi-Government institutions, and on trade of goods and services between registered and unregistered businesses.

477. I therefore propose to increase this amount to $500 000 with effect from January 1, 2007.

Remittances

478. The current legislation provides that withholding tax on interest, dividends, fees and royalties collected should be remitted to ZIMRA within a period of 30 days or such longer period as the Commissioner General may allow, taking account of the manual payment mechanism in place.

479. In view of improvements in payment transfer arrangements, I propose to reduce the period within which collected tax can be remitted to ZIMRA from 30 days to 15 days with effect from January 1, 2007.

Deemed Benefits

Motoring Benefits

480. Taxation principles of equity and fairness demands that equal income be taxed at the same rate. Motoring benefits that accrue to employees increase the gross income earned which should therefore be taxed in the hands of the beneficiary.

481. In line with this principle, I propose to adjust upwards the deemed motoring benefits with effect from January 1, 2007 as follows:

Table 4: Deemed Motoring Benefits
Engine Capacity Current Proposed
Up to 1500 cc $9 000 $100 000
Over 1500cc but not exceeding 2000cc $15 000 $160 000
Over 2000cc but not exceeding 3000cc $18 000 $200 000
Over 3000cc $24 000 $260 000

Corporates

Self Assessment

482. Honourable Members will recall that, during the 2006 Budget, I announced that, prior to implementation of self assessment system, ZIMRA will undertake a consultative exercise during the course of the 2006 fiscal year.

483. ZIMRA has since embarked on comprehensive stakeholder consultations, hence is ready to implement the self assessment system. This will place greater responsibility on taxpayers for assessing tax payable, thereby allowing revenue collectors more time to focus on auditing compliance standards of the major taxpayers.

484. I, therefore, propose to introduce the Self Assessment System on income earned from January 1, 2007.

Value Added Tax

Threshold for Registration

485. Honourable Members may recall that the VAT registration threshold was reviewed during the 2006 Budget to take account of the impact of inflation.

486. In order to enhance the administration of the tax, I propose to review upwards the threshold for VAT registration from the current level of $6 million to $60 million per annum, with effect from 1 January, 2007.

487. This measure will not apply to registered VAT operators.

Rationalisation of Zero Rated & Exempt List

488. Mr. Speaker Sir, SADC Member States agreed to rationalise and harmonize VAT zero-rated and exempt goods and services under the SADC Tax Memorandum of Understanding (MOU). In pursuance to this commitment, some Member States have reduced their list of zero-rated and exempt products to less than twenty items.

489. Although progress has been made towards rationalisation of exempt and zero-rated goods and services, our list however remains long, compared to other SADC Member States.

490. In this regard, I further propose to streamline the list of zero-rated and exempt goods and services to include lamb, goat and sea food with effect from January1, 2007.

Remittance Period

491. Under the current legislation, VAT collected should be remitted to ZIMRA by the last day of the first month following the end of the tax period relating to the registered operator.

492. In order to improve the accounting process of VAT collected, I propose to change the payment date for VAT remittances to the 20th of the first month after collection, with effect from January 1, 2007.

Auditing

493. Mr. Speaker Sir, I am aware of increased cases of non-compliance whereby some operators maintain parallel sets of trading books as they seek to evade payment by understating their tax obligations. This practice has potential to impact negatively on revenue collection.

494. ZIMRA will thus intensify audit coverage in order to reduce revenue leakage.

Value for Duty Purposes

495. Mr Speaker Sir, Government remains committed to fair competition with all potential trading partners. It is in line with this spirit that we have called on our industries to adapt to the more open globalised trading arrangements.

496. Concerns were, however, raised over the impact on local textile industry of dumping and unfair pricing. Stakeholders therefore called upon Government to levy protective customs duties.

497. In order to even the playing field between local manufacturers and importers, I propose to review the basis for determining the value for duty purposes. Announcement on the applicable rates will be made in due course.

498. Furthermore, I remain ready to invoke necessary measures to protect our local industries against any identified practices of dumping into the domestic market. I will also be capacitating quality control institutions such as the Standards Association of Zimbabwe.

Value Addition

499. Honourable Members will recall that in the 2006 National Budget Statement, I announced Governments intention to introduce tax measures that discourage the export of unprocessed commodities such as black granite with potential for value addition. A committee was subsequently put in place under the National Economic Development Priority Programme (NEDPP) to look into Import Substitution and Value Addition.

500. Sectors with potential for value addition have since been identified and appropriate support has partially been availed in line with commitments. Funding for either import substitution or value addition activities has been extended to companies in fertilizer manufacturing, oil pressing, pharmaceuticals, printing services, industrial valve manufacturing, tyre manufacturing, quarry blasting, copper and copper products manufacturing and chrome processing.

501. In order to discourage exports of raw or unprocessed products, I propose to introduce a levy on the value of selected unprocessed products, once measures to curtail obstacles that hinder the processing of value addition are implemented.

Other Revenue Measures

Customs Duty on Cigarettes and Tobacco Products

502. Mr. Speaker Sir, an influx of hazardous, inferior and under priced imported cigarettes continues to impact negatively on the competitiveness of locally manufactured products despite efforts to curb the importation of these products through imposition of deterrent customs duties. The duties have however not been effective due to the disparity between the rate of inflation and the static exchange rate.

503. In order to level the playing field between locally manufactured and imported cigarettes, I propose to amend the calculation of the specific component of customs duty on imported cigarettes. Customs duty on imported cigarettes will therefore be determined as follows:

• the greater of 60% plus US$5.00 per 1000 cigarettes, exchanged at prevailing inter-bank market rate, or 60% plus Z$3300 per 1000 cigarettes to be automatically adjusted monthly for inflation as determined by the Central statistics Office published Consumer Price Index for alcoholic beverages and tobacco.

NOCZIM Debt Redemption Levy

504. The NOCZIM debt redemption levy is currently pegged at $25 per litre of petrol and diesel. This has limited NOCZIM’s capacity to liquidate its debt obligations, which continue to rise in the prevailing interest rate environment.

505. I, therefore, propose to review the levy upwards to from $25 to $60 per litre, with effect from January1, 2007.

Carbon Tax

506. Fuel consumed by local motorists is subject to carbon tax at a rate of $5 per litre of petrol or diesel. In the case of foreign registered vehicles, the tax is charged in foreign currency according to engine capacity.

507. In order to relate the current rate of carbon tax to the market price of fuel, I propose to review upwards the current rate from to $5 to $100 per litre of both petrol and diesel, with effect from January 1, 2007.

Presumptive Tax

508. Mr Speaker Sir, the current levels of Presumptive Tax need to be aligned to reflect their real value, following erosion by inflation.

509. In order to realise this, as well as complement Government efforts in the maintenance of roads, I propose to review upwards the current rates of presumptive tax as follows:

Driving Schools

• Vehicles used for class four training – from $8,000 to $120,000 per quarter; and
• Vehicles used for classes 1 and 2 training – from $12,000 to $180,000 per quarter

Haulage Trucks

• Of carrying capacity of less than 20 tonnes – from $12,000 to $180,000 per quarter; and
• Of carrying capacity of more than 20 tonnes – from $20,000 to $300,000 per quarter.

Commuter Transport Operators

• Of carrying capacity of 15 to 24 passengers – from $6,000 to $90,000 per quarter;
• Of carrying capacity of 25 to 36 passengers – from $12,000 to $180,000 per quarter; and
• Of carrying capacity of 37 passengers and above – from $18,000 to $180,000.

Taxi-Cab Operators

• From $6,000 to $90,0000 per quarter

Automated Financial Transaction Tax

510. Automated financial tax is currently charged at the rate of $10 each transaction.

511. I propose to increase the rate to $50 per transaction, with effect from January1, 2007.

Stamp Duty

512. Stamp duty on cheques is pegged at $10 per each cheque issued.

513. I propose to increase stamp duty to $100 per cheque issued, with effect from January 1, 2007.

Budget Deficit & Financing

514. Mr Speaker Sir, the projected nominal GDP of $8.5 trillion for 2007, and the anticipated revenue target of 35.3% of GDP, would entail total 2007 Budget revenues of $3.0 trillion.

515. This level of revenue, against the above proposals to rationalise the 2007 Budget expenditure allocations to $4.6 trillion, excluding interest, would imply a Budget deficit of $1.5 trillion.

516. The resultant overall expenditures of $4.5 trillion, with revenues of $3.0 trillion, leave an overall Budget deficit for 2007 of 17.6% of estimated GDP.

517. Under this scenario, all effort will be made to contain non-interest expenditure within the expected revenue inflows of $3.0 trillion. Any borrowings will be channelled towards financing the interest on existing debt.

518. In light of the fact that the country will remain under sanctions, I have not made major assumptions with regards to foreign financing of this Budget deficit. The financing of the projected 2007 Budget deficit is, therefore, largely from domestic financial savings.

IX. CONCLUSION

519. The objectives of this Budget are to stabilise prices, grow the economy, create jobs and raise the standards of living of our people. In order to achieve these objectives, we need a Shared Vision and consensus on what policies are necessary to address these challenges. It goes without saying that we are going to need complementary policies that are well synchronised. And above all, we need the will and commitment to implement these tough policies.

520. When it is all said and done, Mr Speaker Sir, I believe the Zimbabwean economy is a resilient one, and it will carry us through. We may wish to get comfort from the words of Saint Paul in his letter to the Corinthians.

521. Mr Speaker Sir, 2 Corinthians Chapter 4 Verses 16 – 17, I quote: “Therefore, we do not lose heart. Though outwardly we are wasting away, yet inwardly we are being renewed day by day. For our light and momentary troubles are achieving for us an eternal glory that far outweighs them all.”

522. Mr Speaker Sir, I now commend the 2007 annual Budget to the House and I place it on the table.

Minister of Finance
HARARE
30 November 2006

2006-12-01T01:23:00.000+02:00

The World Commemorates World Aids Today

Today is World Aids Day. The disease, which kills about 3 000 people a week, has also been a victim of the larger political crisis bedeviling the country. ARV’s are in short supply, with the few available being routed to the elite few who have the right political connections.
Here are some statistics journos can use in their reporting of Aids from Zimbabwe Aids Relief

·The population of Zimbabwe is 12 million people

·The HIV infection rate is 26% !

·Only 27,000 of the 1.3 million Zimbabweans who need HIV medicines are receiving any

·We're providing 465 of the 27,000 people (nearly 2% !) with their AIDS meds

·The average life expectancy in Zimbabwe for women is now 33 years and for men it is 37 years

·There are now over 1 million children in Zimbabwe who have already been orphaned due to AIDS !

·Over 3,000 people die each week in Zimbabwe due to AIDS

2006-12-01T01:19:00.000+02:00

Latest Media Headlines

Stories By New Zimbabwe.Com

MATABELELAND North governor Sithokozile Mathuthu has won a $30 million defamation suit against the Financial Gazette newspaper by default after the paper failed to file papers opposing the suit.

Mathuthu wants damages over a series of stories in the Financial Gazette suggesting she had blown taxpayers' money through lavish spending at a Bulawayo hotel.

The Matabeleland North governor is also suing the weekly Standard newspaper for repeating the Financial Gazette claims.

The Fingaz's lawyers from Atherstone and Cook failed to attend a pre-trial conference before a judge issued a summary judgment on Tuesday.

Linda Cook, representing the Financial Gazette, on Wednesday said they would apply for rescission of judgment.

She said she indicated to Mathuthu and her lawyers during a pre-trial conference concerning the Standard case that she intended to apply to the High Court for an order consolidating the two actions for the purposes of trial.
The newspapers reported that Mathuthu, also a member of the Zanu PF's Central Committee and Politburo, blew $2 million (new currency) on food and accommodation during her stay at a five star Bulawayo hotel.

Mathuthu insists her stay in the hotel “did not cost the government anywhere near the amount of $2 million alleged in the article."
The governor has a house in one of the high-density suburbs in the city.

According to court documents, Mathuthu does not deny staying in a top hotel on a government account but queries the Financial Gazette's claim that she spent $2 million in tax payers' money.
Mathuthu also denies any involvement in an alleged attempt to restructure the ruling Zanu PF party's top power structure, a plot allegedly hatched in Tsholotsho by leading Zanu PF figures opposed to Joice Mujuru's bid for the vice presidency.

Mathuthu said she had a “good name and reputation, which were damaged by the said articles”.
Her lawyers said in court papers: “Mathuthu denies that she is in any way associated with the Tsholotsho group of political plotters and that her visit to the area had any other agenda other than government business."

She also denied that President Robert Mugabe summoned her over the incident.
“The reports were unlawful, false and malicious…They were understood bythe ordinary public to portray the plaintiff as an irresponsible, dishonest,reckless, insensitive, nauseating, arrogant, corrupt, treacherous personwhose lavish extravagance knows no bounds,” the papers said.
Meanwhile New Zimbabwe sources say Lydia Mavhengere and Ishmael Kadungure are set to appointed , as the General Managers for TV and Radio Services respectively.
The UK- based website says Alson Mufiri will be named as Mavhengere's deputy and Admire Taderera will deputise Kadungure.
Tazzen Mandizvidza will be confirmed as head of news while Robson Mhandu will move to Gweru to head a new Radio Station called 247 SW, which will broadcast on the short wave frequency in direct competition with the Voice of America’s Studio 7, and SW Radio Africa, which broadcasts from London.
Edited

2006-12-01T01:09:00.000+02:00

Copy Of Budget

Today Finance Minsiter Herbert Murerwa announced the budget. True to expectation the hard drinking former diplomat did not offer any real solutions to the country’s bleeding economy. ZimJournalists Arise sources who were in parliament today, say it seems the Minister blamed Gideon Gono for all that is going wrong.
It seems no love is lost between the two.
Sources say the opposition was denied the opportunity to raise debate, with parliament clerk Austin Zvoma adjourning parly. ZimJournalists Arise is publishing the entire budget in two parts starting from today

Part One
I. MOTION

1. Mr. Speaker Sir, I move that leave be granted to bring in a Bill to make Provisions in connection with Revenues and Expenditures of the Republic of Zimbabwe and to make Provisions for matters ancillary and incidental to this purpose.

II. INTRODUCTION

2. Firstly, Mr Speaker Sir, I wish to start my Budget speech by acknowledging the valuable support and cooperation that I continue to receive from Parliament in the formulation and implementation of the National Budget.

3. This is consistent with Government’s commitment for improving the budgeting process by involving a wider range of stakeholders, including those at grassroots levels. Such involvement guarantees the ownership of the Budget by all stakeholders and is critical for sustaining consensus over the implementation of announced policy measures.

4. It is against this background that my Ministry undertook a nationwide consultative outreach programme aimed at involving the public as much as possible in the Budget formulation process. My Ministry benefited tremendously from the input of stakeholders to which Government attaches great value.

5. The central message from these consultations evolved around the following challenges among others:

· Ever-increasing prices;
· Continued distortions in the pricing of key commodities and utilities;
· Unemployment and rising poverty levels;
· Foreign exchange shortages;
· Low industrial capacity utilisation;
· Underutilised allocated land;
· Inadequate measures to deal with rising levels of corruption in both the public and private sectors;
· Deteriorating provision of basic public services;
· Poor maintenance of infrastructure;
· Inconsistent policy pronouncements;
· Declining clarity over the role and accountability of the key institutions of Government;
· Perceptions of lack of commitment to effectively deal with the challenges facing the economy; and
· Increasing indiscipline.

6. One of the consequences of the above challenges, Mr Speaker Sir, is the emergence of very large income disparities, with the majority of the lowest paid workers earning below the Poverty Datum Line.

7. The deterioration in the welfare of our people has seen their capacity to access basic healthcare services, education, housing and other amenities collapse overnight, under the prevailing hyper-inflationary environment.

8. This, Honourable Members, is happening at a time when a small proportion of the population is now accumulating wealth overnight, in part benefiting from the price distortions arising from some of the policies and facilities meant to protect the very poor.

9. In this environment, the country continues to experience loss of critical skills, the dominance of the informal sector in the economy, declining capacity utilisation and de-industrialisation. These are some of the challenges that the Budget will have to address with ‘head-on’.

10. Regrettably some of the wealth accumulation is a direct product of the prevailing indiscipline in our economy. We have amongst the citizens, individuals benefiting from abuse of public resources and thereby contributing to unnecessary public expenditures and economic hardship.

11. Mr Speaker Sir, we therefore need to declare war against indiscipline, and in this War, the Budget will not be found wanting. We will therefore need to review and strengthen the legislation and penalties for economic crimes.

12. Mr Speaker Sir, Honourable Members will be aware of the partnership with the private sector in the context of the National Economic Development Priority Programme (NEDPP). The thrust of the NEDPP is the implementation of Quick Win programmes and projects, whose objective is to stabilise the economy and lay the foundation for sustained economic growth.

13. The 2007 National Budget will play its critical role of addressing stakeholder concerns, support the NEDPP measures, foster macro-economic stability and restore business confidence.

14. Mr Speaker Sir, it is no secret that the country remains under siege, facing sanctions from the West, characterised by lack of balance of payments support, lines of credit, foreign direct investment and deliberate efforts to undermine our economic turnaround initiatives.

15. This makes it vital that we employ innovative tactics to survive in this environment, taking advantage of our abundant natural resource endowment and reliable cooperating partners.

16. Mr Speaker Sir, the 2007 Budget will be guided by the Results Based Budgeting principles adopted by Government in 2005. Hence, the expenditure allocations for the coming year are related to the anticipated and time-framed deliverables during 2007. I am happy to note that submissions from line Ministries now take the Results Based Budgeting format on board.

17. The setting of specific deliverable targets for the respective line Ministries under the 2007 Budget should also assist to ‘turn the tables’ on the major inflation drivers under Ministries’ domains through active focus on productivity and close monitoring at the Ministry level. In this regard, the Budget will ensure that Ministries focus on their roles and responsibilities in fighting the overall inflation levels.

18. Mr. Speaker Sir, Honourable Members will be aware that the implementation of our Currency Reform exercise on August 1, 2006 resulted in the revaluation of the currency with the removal of three zeros from the old bearer cheques and the introduction of a new set of bearer cheques. Hence, in my presentation, all domestic currency statistics reflect the revalued currency.

19. Mr Speaker Sir, my presentation will cover the fiscal performance up to October 2006 and the estimates to year end. I will also touch on the economic challenges we are facing as a Nation.

20. Mr Speaker Sir, allow me to first of all give a brief overview of the Global Economic Outlook, as well as a review of recent Domestic Economic performance and projections for 2007.

21. My outline of the Fiscal Outturn during 2006, will be followed by the 2007 Expenditure Bids by line Ministries, before I turn to the Thrust and Priorities for the 2007 National Budget, and my Revenue Proposals.

III. GLOBAL ECONOMIC OUTLOOK

22. Global economic performance remained strong in 2006, with emerging markets experiencing rapid growth, against the background of strong non-oil commodity prices, especially minerals. Performance was most notable in China whose growth is forecast to remain high at about 10% in 2006 and 2007. In India, growth is expected to remain at 8% percent in 2006, down slightly from 8.5% in 2005.

23. Thus global growth of 5.1% is forecast in 2006, up from the 4.9% realised in 2005. Global economic growth is forecast to slightly drop to 4.9% in 2007.

24. Economic growth in the United States is expected to increase marginally to 3.4% in 2006, compared to 3.2% in 2005. This is being driven by consumption and residential investment.

25. Economic recovery in Japan is continuing, with growth forecast to increase to 2.7% in 2006, after recording a growth of 2.6% in 2005.

26. In the Euro zone, a 2.4% economic growth is expected in 2006, up from 1.3% in 2005.

27. The strong recovery in Europe and an upswing in the Japanese economy will play a critical role in sustaining global economic growth.

28. Developing economies continue to grow, underpinned by fiscal consolidation, market-oriented reforms, increased foreign investment inflows and greater exchange rate flexibility.

29. In Sub-Saharan Africa, a 5.2% growth is expected in 2006. An upswing in economic growth to 6.3%, is expected on the back of increased oil output in Nigeria, Angola and Equatorial Guinea.

30. In Southern and Eastern Africa, growth of over 5% is expected in 2006. The region should benefit from recent efforts to further deepen regional integration and the opening up of markets through Free Trade Areas. In this regard, it is important that our business community be ready to take advantage of the opportunities that arise from deeper regional integration.

31. Strong global economic growth, especially in China and India, has continued to support the high international prices of primary commodities, especially copper, gold and platinum. Although oil prices have been coming down, the price still remains volatile.

32. In May 2006, gold and platinum prices reached record levels of US$722 per ounce and US$1328 per ounce, respectively. Brent crude oil prices reached a record high of US$79 in August.

33. The threat of protectionist pressures, coupled with volatile oil prices, remain major risks to global growth.

IV. RECENT ECONOMIC DEVELOPMENTS

Overall Economic Activity

34. Mr. Speaker Sir, the Zimbabwean economy is expected to register a lower decline of 2.5% in 2006, compared to the 3.8% decline registered in 2005. This is on the back of the overall economic reversal of the downward trend experienced in agricultural production over the past few season.

35. The combination of a good weather outturn, coupled with the consolidation of our Land Reform Programme contributed to the anticipated 6.4% growth in agriculture in 2006.

Graph 1: Percentage Growth of Major Sectors 2001 to 2006 (est)
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36. The economy is projected to grow marginally by between 0.5% to 1% in 2007. This is due to the anticipated improved performance in agriculture and mining. The performance of the manufacturing sector continues to be negatively affected by low capacity utilisation and is expected to decline by about 7% in 2006. The sector is projected to decline at a lower rate of 2% in 2007.

Agriculture

37. Agriculture is anticipated to grow by about 6.4% in 2006. This, however, is lower than the original projection of a growth of 23%. The deviation is largely on account of lower than anticipated maize and wheat production.

Graph 2: Agricultral Output Growth 2001 to 2006
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38. Mr Speaker Sir, the outlook for agriculture for the 2006/07 season is promising, given Government’s efforts to ensure adequate and timely supply of critical inputs such as seeds, fertiliser, fuel and chemicals. These efforts by Government, in partnership with key private sector stakeholders, has seen better coordination and supply of inputs and will result in increased productivity and better yields.

39. Early preparations and the timely provision of inputs create greater scope for farmers to adequately plan and hence, the increase in expected crop hectarage. The on-going rehabilitation of the greenhouse facilities is supporting the revival of the horticulture sub-sector.

40. Mr Speaker Sir, against this background, and also taking account of forecasts by the Meteorological Department of a near-normal rainfall season, agricultural output is expected to register a growth of 9.4% in 2007.

Mining

41. Mr Speaker Sir, record high international mineral prices have seen improved foreign exchange realisations from mineral exports. Gold prices have risen to over US$600 per ounce, while copper and platinum prices have risen above US$7 000 per ton and US$1 200 per ounce, respectively. Similarly, nickel prices have more than doubled to over US$30 000 per ton.

42. However, the lack of extensive mining recapitalisation at existing mines and investment in new mining exploration programmes has remained a major constraint to the expansion of mining operations. This has been compounded by disruptions to power supplies, coupled with rising mining production costs which affect viability.

43. The spiralling cost of capital items, due to inflation, is being exacerbated by the rising parallel market exchange rates at which most imported items are priced.

44. The other serious challenges still facing the mining sector are the continued leakages in our mineral exports, especially gold and diamonds. Owing to the above challenges, gold deliveries declined by 24%, from 10 552.04 kgs in the period January - September 2005, to 7 991.57 kgs in 2006.

45. Asbestos production declined slightly from 93 326 tons by September 2005 to 82 252 tons for the same period in 2006. However, platinum production increased marginally from 3 563.34 kgs in 2005 to 3 822.77 kgs in 2006.

Graph 3: Minerals Growth 2001 to 2006
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46. The law enforcing agents, together with the Reserve Bank should strengthen measures to address leakages in the mining sector. Policies to improve viability in the mining sector will be vigorously pursued by Government. This should support the revival of mining production, which is projected to decline by 14.4% in 2006.

47. In this regard, realising higher gold production and deliveries will require an appropriate exchange rate regime which ensures viability, on the back of all time high international mineral prices. Furthermore, the setting up and taking over of some gold milling centres by Fidelity Printers and Refinery should contribute towards reducing leakages in gold export receipts.

48. In coal mining, the recent recapitalisation at the Hwange Colliery Company has started to bear fruit. As a result of this recapitalisation, the mining company has been able to open the new Chaba Mine and commence operations at the 3 Main underground mines.

49. Monthly coal production, is therefore projected to double by December 2006 to 425 000 tons, enabling the company to meet local demand of 412 000 tons and to resume exports.

50. Overall, mining output is estimated to grow by 4.9% in 2007.

Manufacturing

51. Mr Speaker Sir, price distortions, foreign currency shortages for the importation of essential raw materials and spares, energy shortages and declining real disposable incomes continue to depress production in the manufacturing sector. The sector is estimated to decline by 7% in 2006.

Graph 4: Growth in Manufacturing 2001 to 2006 est
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52. The inability by most manufacturers to source foreign exchange for importing raw materials from the inter-bank market has meant that they have increasingly relied on the parallel market, where the exchange rate is significantly depreciated. This has forced companies to incur higher production costs, which are ultimately passed on to consumers as higher prices. This has contributed to the escalation of higher inflation.

53. The shortage of foreign exchange to import adequate raw has compromised industrial capacity utilisation. Most companies continue to operate below 30% capacity which means higher production unit costs. This, against a background of rising demand, has contributed to price escalations.

54. Mr Speaker Sir, measures to ensure growth in the economy’s industrial base have included support for distressed companies, Import Substitution and Value Addition.

55. Schemes already in place include the $5 billion Fund to resuscitate distressed companies, which is being managed by the Infrastructure Development Bank. The Bank is also managing the $500 million Value Addition and Import Substitution Fund.

56. This, coupled with the initiatives to vigorously promote toll manufacturing, should also see an improvement in industrial capacity utilisation. These measures, including an exchange rate regime which guarantees the viability of exporters, should assist to reverse the decline in industrial production. The manufacturing sector, Mr Speaker Sir, is projected to decline by 2% in 2007.

Tourism

57. Vigorous marketing and promotional initiatives in Asia and the Middle East markets are starting to pay dividends as reflected by the increase in tourist arrivals from these regions. Growth of the regional and domestic tourism markets has also supported growth in the tourism industry.

58. In response to these marketing efforts, tourist arrivals during the period to September 2006, grew by 45% to 1 596 489 over the same period in 2005. The positive outturn to September 2006 reflects a 52% growth in tourist arrivals from African countries, mostly Southern Africa. Tourist arrivals are expected to grow by 23% for the year, with growing numbers coming from Asia.

Chart 1: Growth in Tourist Arrivals to September 2006
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59. As the tourism sector recovers there is need to plug all leakages of foreign exchange earnings. This should reverse the mismatch between increasing tourist arrivals and revenues.

Transport

60. The economy is benefiting from improved performance and capacity of the National Railways of Zimbabwe (NRZ), against the background of concerted efforts by the Board, management and client stakeholders. This has seen significant refurbishment of locomotives and wagons, allowing the NRZ to generate enough revenue to sustain its operations, including liquidating statutory obligations for tax, pension, and medical aid contributions.

61. Sustaining this turnaround, will require further support in the rehabilitation of infrastructure, signalling equipment and the improvement of locomotive power and rolling stock capacity. Already, the NRZ is taking advantage of Government’s Look East Policy in upgrading the Harare-Mutare, Bulawayo-Victoria Falls and Bulawayo-Chiredzi lines.

62. Road transport capacity has also benefited from improved fuel availability, from the Direct Fuel Import facilities, as well as the other facilities being coordinated by the Reserve Bank.

Inflation Developments

63. Mr Speaker Sir, inflation remains one of the major challenges facing our economy. Year on year inflation rose from 613.2% in January 2006, to reach a peak of 1 204.6% in August. In September it however declined to 1 023.3%, before the rise to 1 070.2% in October 2006.

Graph 5: Year on Year (YOY) Inflation & Money (M3) Supply Growth in 2006
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64. Such high levels of inflation have resulted in the erosion of disposable incomes and worsened poverty. Savings have been severely affected, with pensioners unable to make ends meet. On the other hand, the competitiveness of our exports has been eroded significantly by such high levels of inflation.

65. Some of the major drivers of inflation remain:

· The impact of public sector borrowing requirements, for budgetary financing;
· Quasi-fiscal activities funded through the Reserve Bank;
· High money supply growth;
· Corruption;
· Increase in parallel market activities;
· Foreign exchange shortages;
· Inflation expectations;
· Price distortions and behaviour of economic agents; and
· Structural supply bottlenecks.

Graph 6: Average Year on Year (YOY) Inflation, Money Supply (M3)
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66. Mr Speaker Sir, high levels of inflation have become increasingly self-sustaining through the breeding of expectations of even higher levels of inflation. In such an environment producers are now adjusting their prices on the basis of their expectations of the cost of replacing stock.

67. Similarly, salary and wage settlements are being driven by high inflation and inflationary expectations as workers aim at avoiding further erosion of the purchasing power of their incomes.

68. This behaviour is contributing to the prevailing vicious wage-price spiral – where high inflation prompts high wage demands, and vice versa.

External Sector

69. Mr Speaker Sir, our Balance of Payments (BOP) position continues to be under severe pressure, against a background of declining exports, absence of BOP support, lines of credit and foreign direct investment.

70. Reflecting this, a current account deficit of US$543.3 million is projected in 2006 as both manufacturing and mining performance remain depressed. With agriculture and tourism still to fully recover, their contribution to export growth remains limited.

71. In 2006, mineral, manufactured and agricultural exports are projected to decline by 0.2%, 10.5% and 6.3%, respectively. As a result, exports are estimated to decline by 6% in 2006.

72. Imports, which increased marginally by 0.2% in 2005, driven by increased food, electricity, fuel and manufactured imports, are however projected to decline by 1.6% in 2006, against a background of foreign currency shortages.

73. On the capital account, net inflows amounting to US$298.4 million are envisaged. Foreign direct investment into mining and some of our Parastatals under the Look East initiatives are the major factors contributing to the positive capital account balance

External Debt

74. Mr Speaker Sir, Zimbabwe remains committed to honouring all its external loan obligations. The severe BOP position, partly arising from sanctions, however, limits our ability to meet our external loan obligations.

75. As a result, of the total external debt outstanding amounting to US$4.1 billion at end of October 2006, external payment arrears total US$2.2 billion.

V. FISCAL DEVELOPMENTS IN 2006

76. Mr. Speaker Sir, Honourable Members will recall that the 2006 Original Budget, together with the Supplementary Budget I presented to the House on July 27, provided for total expenditure and net lending of $451.1 billion, revenue of $250 billion, and a deficit of $201.1 billion or 18.7% of estimated GDP.

77. Actual Budget performance to October 2006 shows total expenditure and net lending at $263.2 billion, against revenue of $229.1 billion. Given projections for the last two months of 2006, total revenues will rise to $351.6 billion.

78. This, Mr. Speaker Sir, would reduce the budget deficit outturn to $99.5 billion, implying a much reduced 2006 fiscal deficit of 9.2% of estimated GDP.

79. Improved revenue collections, largely on account of higher inflation, have not been translated into improved service delivery and project implementation, given the cost escalations which adversely affected the delivery of public services.

Revenue Performance to October

80. Revenue collection to October remained in line with the revised revenue targets and on course at $229.1 billion, against the background of tighter enforcement of compliance by ZIMRA. Tax revenue accounted for $220.9 billion of this. Non-tax revenue to October 2006, comprising mainly of fees, charges, and the 7.5% civil servants pension deductions, contributed $8.2 billion.

81. The improved collection is due to increased enforcement of compliance by ZIMRA. This has resulted in significant increase in the number of PAYE and corporate returns being filed. Value Added Tax and Customs Duty have also significantly increased.

82. Value Added Tax collections amounted to $61.5 billion, translating to 27.5% of total revenue, against a target of $49.2 billion. VAT on local sales amounted to $42.3 billion, and that on imports, to $18.3 billion. Improved VAT collections were attributed to price increases of goods and services, as a result of the current hyper inflationary environment, and were also complemented by the August 2006, movement in the official exchange rate used in valuation of imports. VAT collections are expected to end the year at $100 billion.

83. Individual Pay As You Earn (PAYE) tax collections amounted to $58.1 billion or 26.3% of total revenue, against a target of $34 billion and are expected to end the year at $80 billion. The positive performance of PAYE reflects the award of higher than anticipated salary and wage settlements in both the private and public sectors.

84. Customs duty collections amounted to $26.7 billion or 12.1% of total revenue, against a cumulative target of $23 billion. This improved performance is partially attributed to the upward movement in the exchange rate, which impacted on the value of imports. Customs duty collections are expected to end the year at $40 billion.

85. Corporate profits were constrained by low capacity utilisation arising from increased costs of production and shortages of foreign currency for the importation of raw materials and equipment. Cumulative collections for the period amounted to $38.3 billion or 17.3% of total revenue, against a target of $31.9 billion and are estimated to be around $55 billion by year end.

86. Tax revenue collections from domestic dividends and interest were $19.9 billion or 9% of total revenue, and are expected to end the year at $22 billion. Major contributors to this revenue head were shareholders’ tax, at $12.9 billion, followed by tax on interest of, $7 billion.

87. Carbon tax contributed $2.9 billion, while other income taxes contributed $2.2 billion to overall tax revenue as at the end of October 2006. The other income taxes were dominated by Withholding Capital Gains tax, which raised $1.8 billion, and other Capital gains taxes which contributed $366.4 million.

88. The tobacco levy, however, raised only $50.9 million. This subdued performance was against the background of the challenges facing some of the new tobacco farmers. These relate to limited expertise, which contributed to the fall in yields. However, quality and quantity of product delivered to the auction floors should improve in the coming season benefiting from this year’s early provision of inputs.

89. Excise duty collections performed above expectations at $7.5 billion to the end of October 2006 and are projected at $12 billion by year end. Alcoholic beverages continue to be the major contributor to this revenue head, benefiting from the frequent increases in the prices of alcoholic beverages and relatively stable demand.

90. Excise duty on beer accounted for $4.5 billion, followed by that on tobacco, $2.3 billion, & wines and spirits, $812.1 million. The 5% excise duty on second hand vehicles generated $370 million, while non-alcoholic beverages contributed $483.3 million to excise duties.

91. ‘Other taxes’ collected over the ten months to October 2006, contributed $3.9 billion to total tax revenue, with stamp duties remaining the major contributor at $2.1 billion. Escalations in property values in a hyper inflationary environment, coupled with increased activity on the stock market, are underpinning stamp duty collections.

92. The banking levy realised $827.3 million, followed by withholding tax on tenders, $448.4 million, and the road access fee, $374.8 million. However, the contribution of presumptive tax to ‘other taxes’ remained relatively small at $112.8 million.

93. Overall revenue performance in the last two months of 2006, is expected to remain on course. The traditional year-end bonus payments, coupled with corporate tax payments should augment revenue collections during this period. Corporate tax payments under the contemporaneous tax system, wherein tax is payable in the fiscal year in which profits are generated, has greatly increased revenue under this sub-head.

Expenditure Performance to October

94. Total Budget expenditures and net lending for the ten-month period to October 2006 amounted to $263.2 billion, against a target of $321.7 billion.

95. Mr Speaker Sir, allow me to outline the performance of the key expenditure heads.

Employment Costs

96. Employment costs for the period under review amounted to $85.7 billion, against a target of $76.3 billion.

97. This expenditure overrun is a result of reviews of public service incomes undertaken in January and May 2006, which were meant to cushion civil servants in the prevailing hyper inflationary environment. This also necessitated further review of housing and transport allowances with effect from October 2006.

98. Notwithstanding the above income adjustments, remuneration levels for the civil servant remain relatively low. This is compromising not only the capacity of Government workers to afford such basic necessities such as transport, accommodation, food, and medical service, but also the ability of Government to retain and attract skilled and experienced personnel.

Pension Payments

99. In addition to reviewing salaries and allowances for civil servants, Government further reviewed pension benefits in January and May 2006. The reviews resulted in Pension payments of $16.9 billion, against a target of $15.1 billion. This enabled us to provide some cushion for retirees, as incomes were being eroded by inflation.

Goods and Services

100. High inflation also impacts adversely on the capacity of Ministries to procure goods and services. This necessitated the provision of additional resources through the Supplementary Budget, mainly on account of increasing costs on transport, telecommunication, and utilities.

101. Overall expenditure for goods and services, at $109.7 billion, exceeded targeted expenditure by $118.4 billion.

Capital Expenditures

102. Implementation of capital projects has also been affected by cost escalations arising out of hyper inflation. This has undermined our efforts to raise the Capital Budget to the levels targeted by Cabinet of over 30% of overall Budget expenditures.

103. Cumulative capital expenditure to October 2006, amounted to $52.6 billion, against a target of $72.9 billion.

Lending

104. Total net-lending as of October 2006, amounted to $873.8 million, against a target of $1.1 billion. Local Authorities remained the major beneficiary of Budget on-lending during 2006.

105. Delays in the submission of programme of works by some targeted beneficiary Local Authorities limited the extent of the upgrading of sewer and water reticulation facilities in our urban centres.

Quasi-Fiscal Expenditures

106. Mr Speaker Sir, Honourable Members will be aware that, in light of the scarcity of resources within the Budget envelope, some of the funding requirements for public and private sector projects were taken up by our Central Bank over the last three years. The emergence of some new priorities soon after the approval of the 2006 Budget, which could also not be met within the Budget envelope, exacerbated the situation.

107. Honourable Members will also be aware that the quasi-fiscal expenditures directly linked to price distortions and Government departments will ultimately be serviced by the tax-payer, hence, the need to fully reflect such expenditures in the Budget.

108. Such quasi-fiscal expenditures have risen to levels that are now undermining our turnaround efforts by systematically increasing the growth of money supply and therefore fuelling inflation, in addition to other negative effects on the economy.

109. These negative effects include instances where the quasi-fiscal expenditures did not achieve the desired supply response, owing to the abuse of availed facilities by some beneficiaries and the lack of deterrent measures.

110. In this regard, combating inflation will require the phasing out of all quasi-fiscal operations and adequately providing resources for prioritised expenditures within the Budget. This is also consistent with accountability and transparency over the allocation of public resources. Fulfilment of this requirement also assists the Nation to appreciate the totality of public sector expenditures and borrowing.

111. Hence, consistent with our Constitution and the Audit and Exchequer Act, beginning 2007, all such and any other additional public expenditures will be strictly and adequately reflected through the budgetary process.

112. Mr Speaker Sir, the stock of quasi-fiscal expenditures at the beginning of November 2006, amounted to $372.9 billion. Of this amount, $60.4 billion are quasi-fiscal expenditures for 2005, while $8.4 billion is for the fiscal year 2004. This leaves the quasi-fiscal expenditures for the current fiscal year at $304.1 billion as at November 2006.

Import Payments

113. Of the total quasi-fiscal expenditures, $103.4 billion is related to Reserve Bank foreign exchange provision for various import programmes.

114. In this regard, fuel imports accounted for $49.4 billion. GMB imports for seed, grain and fertilizer absorbed another $25.5 billion. Payments for electricity imports, as well as other ZESA imports totalled $13.3 billion. Air Zimbabwe foreign exchange requirements accounted for $8.4 billion.

Agriculture Support Facility

115. In the absence of strong banking sector financial lending to the agricultural sector following the land reform, financial support for agriculture under the Agricultural Sector Productivity Enhancement Facility (ASPEF) amounted to $101.2 billion.

116. Of the total ASPEF amount, $60.4 billion went to farmers. Food security accounted for $18.7 billion, while the winter wheat programme benefited to the tune of $21.5 billion, with the balance spread between tobacco support, Agribank and the Agricultural and Rural Development Authority (ARDA).

Maize & Wheat Purchases and Subsidies

117. Furthermore, in the absence of the review of the Grain Marketing Board (GMB) maize and wheat selling prices at a time when the producer prices had been adjusted upwards, quasi-fiscal expenditures were also incurred. As at mid November 2006, support for maize and wheat purchases amounted to $33.5 billion.

Exchange Losses

118. Distortions in the exchange rate, which stakeholder consultations suggest need to be corrected, have also contributed to us incurring quasi-fiscal expenditures. In this regard, total exchange losses were $75.0 billion.

Tobacco, Gold & Cotton Support

119. The distortions in the exchange rate necessitated support prices for some exporters. In this regard, quasi-fiscal support expenditures benefited gold producers and tobacco farmers who received subsidy payments of $8.9 billion and $20.8 billion, respectively. Similarly, cotton farmers had received subsides amounting to $0.7 billion by November 2006.

Parastatals & Local Authorities

120. Mr Speaker Sir, a significant amount of the quasi-fiscal operations were incurred in support of the Parastatals and Local Authorities Re-orientation Programme.

121. This intervention was against the background of declining capacity to deliver basic public services, largely associated with poor corporate governance and management structures. Sub-economic tariffs exacerbated the situation.

122. Almost all of our Parastatals and Local Authorities benefited from this Programme, with draw-downs totalling $17.8 billion by November 2006.

Productive Sector Facilities

123. The deteriorating macro-economic environment also had adverse effects on manufacturing and mining sector, necessitating the introduction of concessionary facilities.

124. In this regard, a total of $0.1 billion was extended to resuscitate and capacitate distressed companies in manufacturing and, mining sectors.

Troubled Banks

125. Mr Speaker Sir, Central Bank measures to deal with the issue of problem banks and financial institutions have been with us for the last couple of years. In the process of restoring the integrity of the banking sector, insolvent institutions could not be salvaged.

126. Recapitalising those banks and institutions requiring liquidity and additional capital injection saw a number of troubled banks access the Troubled Banks Facility. Total support provided under this window amounted to $3.2 billion as at mid November 2006.

Loans to Government Departments

127. A number of critical Government programmes and projects also benefited from quasi-fiscal expenditures. In total, over $7.7 billion was extended to Government departments for various projects for the Ministry of Local Government, Public Works & Urban Development, the Zimbabwe Republic Police, road maintenance and upgrading.

Domestic Debt

128. Mr Speaker Sir, the level of public domestic debt, which had remained relatively stable during the first half of the year, has since been increasing rapidly against the background of increased expenditure demands on Government.

129. Total domestic debt declined from $15.9 billion in December 2005, to $14.9 billion by the end of April 2006, against the background of tight expenditure management.

130. However, domestic debt increased to $46.1 billion by the end of June, largely driven by the review of civil service wages in May. By September, domestic debt had risen to $119.4 billion, reflecting the impact of high inflation on Government operations and programmes. However by October 2006, domestic debt had fallen to $97.8 billion.

131. In the prevailing hyper inflationary environment, the money market has largely operated at the short end. Reflecting this, Treasury Bills of under one year maturity continue to account for most of the public domestic debt at 76.2%, while 181-day paper accounted for 23.7%. Recourse to the highly inflationary overdraft facility with the Reserve Bank has, however, remained limited.

132. With over 98.5% of domestic debt being short term Treasury Bills of less than one year, the restructuring of domestic debt to long term paper becomes necessary. Such restructuring will reduce the interest burden to the fiscus.

Budget Outturn Including Quasi–Fiscal Expenditures

133. Mr Speaker Sir, I have already highlighted the need for us as a Nation to take a holistic approach in accounting for budget expenditures. This entails incorporating into the Budget, quasi-fiscal outlays incurred on behalf of Government by the Reserve Bank.

134. In this regard, I project the 2006 Budget expenditures to remain within the $451.1 billion envelope approved by Parliament under both the original Budget presentation in December last year and the Supplementary Budget of July this year.

135. Quasi-fiscal expenditures are projected to end 2006 at $372.9 billion. Incorporating these quasi-fiscal expenditures in the 2006 Budget outturn increases overall Budget expenditures to $824.0 billion.

136. Mr Speaker Sir, such a high level of expenditure, against the anticipated revenue outturn of $351.1 billion would imply a Budget deficit of $462.9 billion (excluding interest payments).

137. As a proportion of GDP, this represents an unsustainably high Budget deficit of 43.0% of GDP, excluding interest. Such a high Budget deficit underpins the very high money supply growth rates of over 1 000% and the hyper inflation this Nation continues to experience.

138. Mr Speaker Sir, dealing with this challenge will require the adoption of bold expenditure management measures on our part.

139. Mr Speaker Sir, I now turn to the Expenditure Bids of Ministries for the 2007 Budget.

VI. EXPENDITURE SUBMISSIONS FOR THE 2007 BUDGET

140. Mr Speaker Sir, my Ministry received from Ministries and Government Departments, various expenditure submissions for resource allocations, under the 2007 Budget.

141. High inflationary expectations appear to underlie most of the expenditure submissions from Ministries, given this year’s experience. This reinforces the challenge before us of reversing the prevailing high inflationary expectations by adopting and implementing a credible and sustainable dis-inflation programme. Such a programme should be anchored on the complementarity between Fiscal and Monetary policies.

142. Honourable Members, for us to achieve single digit inflation, we will as a Nation, have to make sacrifices and endure some pain. We cannot run away from this fact, which I would like all of us to appreciate and acknowledge.

Overall Bids

143. The total 2007 Budget expenditure bids of line Ministries and Departments amount to $24.0 trillion. This request excludes interest payments that will accrue from the domestic borrowings required to finance the Budget deficit. These expenditure bids represent a growth of 5 313% over this year’s anticipated expenditure outturn. The comparable overall revised Budget for 2006, following the Supplementary Budget, is $331.4 billion, also excludes interest.

Capital

144. Bids for the Capital Budget in 2007 amount to $10.9 trillion, up 9 687% on this year’s projected expenditure outturn of $112.3 billion.

145. Given the above scenario, I have therefore, rationalised the expenditure bids by Ministries and Government Departments in line with our NEDPP priorities, ongoing Government projects and the capacity of the Budget to finance them in a manner that is consistent with our inflation targets.

146. Mr Speaker Sir, I now turn to the Thrust and Priorities of the 2007 Budget, which as I have already indicated will be presented along the principles of Results Based Budgeting which Government adopted in 2005.

VII. THE 2007 BUDGET THRUST AND PRIORITIES

147. Mr Speaker Sir, as we move forward, it will be critical that the 2007 Budget expenditure levels be consistent with a credible anti inflation programme, targeted at drastically reducing money supply growth. This is the only way we will begin to have a firm hand in containing inflation, a prerequisite for building confidence and dealing with high inflation expectations.

148. A comprehensive package to re-enforce policy measures to restore macro-economic stability will therefore encompass the following:

· Consistent fiscal consolidation and expenditure restructuring focusing on capital development, health and education;
· Phasing out quasi-fiscal operations and allocating all resources through the National Budget;
· Elimination of wholesale subsidisation;
· Dis-inflation monetary policy and interest rate management framework targeting reduction in money supply growth;
· An appropriate exchange rate regime and incentives to ensure exporter viability;
· Unlocking Balance of Payments support and external lines of credit;
· Unlocking foreign exchange resources from the Diaspora;
· Curbing foreign exchange leakages in the economy;
· Removal of price distortions and conclusion of a Social Contract binding Government, business and labour;
· Enhancing agricultural production to ensure food security;
· Promotion of mining and tourism development;
· Supporting import substitution, value addition, toll manufacturing and SME development;
· Enhancing infrastructure development;
· Strengthening and streamlining National Social Protection Safety Nets and Programmes; and
· Supportive Parastatal and Local Authorities structural reforms.

149. Central to fiscal and monetary policies complementarity will be the targeting of money supply growth to levels consistent with inflation targets, guided by a consistent monetary policy targeting framework, with quasi-fiscal expenditures curtailed and provided for in the fiscal budget. This will require us to ring-fence the existing stock of quasi-fiscal expenditures and confine them.

150. Experiences elsewhere have demonstrated that policy reversals and the abandonment of policy initiatives mid-stream, only serve to defer and magnify the level of pain endured in the implementation of the necessary corrective policy measures.

151. Piecemeal approaches and half-hearted implementation of critical policies will not deliver. The need for a credible and consistent Macro-economic Policy Framework aimed at reducing inflation and realising macro-economic stability cannot therefore be over-emphasised.

Macro-Economic Policy Framework

152. The Macro-Economic Framework for 2007 consistent with the restoration of macro-economic stability will include the following:

· Fiscal consolidation characterised by an increase in the proportion of the Capital Budget to 24.4% of expenditures and lowering the Budget Deficit (excluding interest) to 17.6% of GDP.

· A dis-inflation programme targeted at reducing inflation from current four digit levels to 350-400% by December 2007 and subsequently to under 10% by December 2008.

· Reflecting all quasi-fiscal expenditures in the 2006 Budget.

· Phased amortisation of the quasi fiscal outlays through the fiscal Budget over three years starting in 2007.

· Phasing out quasi-fiscal activities and allocating all Government expenditures through the Budget.

· The promotion of a more intimate complementarity between fiscal and monetary policies.

· Support of interventions that free up the supply side of the economy from price distortions which in the past have undermined economic growth.

· Real GDP growth target of between 0.5% to 1% in 2007.

· Removal of distortions in the foreign exchange, fuel and other commodities markets which will be part of the process towards the elimination of parallel market activities.

· Stabilising incomes and prices under the auspices of the Incomes and Pricing Commission, supported by a Social Contract.

· Strengthening and streamlining Government’s Social Safety Nets Programmes targeting the vulnerable.

Budget Framework for 2007

153. Mr Speaker Sir, the Budget Framework for 2007 is premised on the following assumptions:

· Inflation target of 350-400% by December 2007;
· A real GDP growth of up to 1% and the respective nominal GDP level of $8.5 trillion;
· Budget Deficit of 17.6% of GDP excluding interest;
· Budget revenues targeted at 35.3% of GDP, implying revenues of $3.0 trillion;
· 2007 expenditure target of $4.6 trillion excluding interest;
· Provision of $100 billion for the phased amortisation of quasi-fiscal operations;
· Targeting Capital Budget to 24.4% of total expenditures or $1.5 trillion and in line with the NEDPP objectives, prioritise the completion of ongoing projects.

154. The 2007 Budget Framework is therefore premised on the economy’s capacity to finance Government expenditures, and provides an overall envelope of $6.2 trillion. This is also consistent with an inflation target of 350 – 400% by December 2007. Failure to contain expenditures within the economy’s financial resource capacity would entail higher inflation, compromising prospects for economic recovery and growth.

Monetary Targeting Framework

155. In order to achieve the inflation targets in the Budget Framework, it is imperative that greater focus be placed on the containment of monetary expansion, complemented by consistent and mutually agreed mechanisms of determining prices and incomes.

156. Pursuant to this, Treasury and the Central Bank have agreed on a new Monetary Targeting Framework, under a dis-inflation programme.

Monetary Policy Anchor

157. Under this dis-inflation programme, Treasury and the Reserve Bank have agreed on the targets for annual money supply growth consistent with the reduction in inflation. The Reserve Bank is therefore expected to meet the following annual money supply growth and inflation targets:

Table 1: Annual Money Supply Growth and Inflation Targets
Money Supply Growth Inflation
December 2007 415-500% 350-400%
December 2008 under 65% Under 10%

158. In order to support the Reserve Bank achieve these monetary anchor targets, Government borrowing requirements will be met from resources outside the Reserve Bank, and no Government Ministry, Department, Parastatal or Local Authority will seek funding directly from the Reserve Bank. Hence, all such funding requests to the Reserve Bank, more so when such expenditures are not reflected in the National Budget, will be rejected.

159. Similarly, Treasury will stay within its statutory limits and will only borrow should the eventuality arise.

160. To this end, the Reserve Bank will deepen its liquidity management interventions, supported by the phasing out of its quasi-fiscal operations from January 2007, with those directly related to price distortions and Government operations being transferred to the fiscal Budget.

Quasi-Fiscal Expenditures

161. Quasi-fiscal expenditure interventions by the Reserve Bank on behalf of the fiscus will be regularised through the Budget by absorbing, on a phased basis, amounts due from Government. These components of the quasi-fiscal outlays will be amortised through the fiscal Budget over the next three fiscal Budgets.

162. I therefore propose to allocate $100 billion under the 2007 Budget towards the repayment of some of our quasi-fiscal outlays that were effected by the Reserve Bank in support of Government programmes. This is in line with our Monetary Targeting Framework, as well as the realisation of transparency in accounting for all Government expenditures in totality.

163. Mr Speaker Sir, let me point out that of the total quasi-fiscal outlays, not all of the obligations will be transferred to the fiscus. Quasi-fiscal expenditures related to allocations made to farmers, private sector companies, Public Enterprises and Local Authorities will be recovered from the beneficiaries of these outlays.

164. In this regard, a Technical Committee comprising Treasury, Ministry of Economic Development and the Reserve Bank has been set up to follow up on these outlays to ensure that the beneficiaries repay the facilities availed.

Pricing Practices
165. The realisation of the inflation and growth targets implied under the above Macro-economic and Budget frameworks will not be without pain. The support of business, labour and other stakeholders, underpinned by a mutually Shared National Vision remains critical for success.

166. In its absence, mistrust among stakeholders prevails. At the same time, widespread speculative practices by producers underpinned by high inflationary expectations and indexation aligned to parallel market activities are perpetuated and drive inflation higher.

167. Clearly, Mr Speaker Sir, such practices are largely driven by self interest, devoid of any commitment to a common Vision.

168. This often prompts ill-timed and often contradictory policy pronouncements and decisions which, not only impact negatively on confidence, but also increases uncertainty among economic agents. A notable example would be resorting to the re-introduction of unsustainable price controls which, however, can only worsen the supply situation.

169. This makes it vital that we develop consensus over pricing frameworks, under which the practices of enterprises are rooted. This should be supported by ethical and prudent business behaviour.

Incomes Determination

170. It will also be necessary that we extend this consensus to influence expectations that guide the determination of Incomes, by ensuring that all stakeholders participate in sharing the costs and benefits involved in the quest for the recovery of our economy.

171. Mr Speaker Sir, I therefore propose the development of mechanisms covering the determination of both prices of goods and services and incomes of workers. Under this, trigger mechanism arrangements, as well as frequency of prices and incomes adjustments, would be mutually agreed upon under the auspices of a Prices and Incomes Stabilisation Programme. I accordingly propose to set aside an amount of $715.6 million for the set up and operational expenses for the programmes.

Productive Sectors Support

172. Mr Speaker Sir, I have also made reference to the positive correlation between improved supply side response and a reduction in inflation. In this regard, over and above the factors highlighted in the foregoing, it is imperative that the 2007 Budget incorporates measures to support the productive sectors of the economy.

173. Cognisant of this, Government remains committed to supporting improved capacity utilisation in the productive sectors of the economy. Targeted sectors include agriculture, manufacturing, mining and tourism.

Agricultural Finance

174. Mr Speaker Sir, Honourable Members will be aware that the backbone of financial support to agriculture, following our implementation of the Land Reform Programme, has remained with Government, directly through the Budget, as well as under the Reserve Bank’s Agricultural Sector Performance Enhancement Facility.

175. I have already alluded to the $76.7 billion agricultural support in 2006 under the Reserve Bank’s ASPEF window, which is part of our quasi-fiscal expenditures through the Reserve Bank. Direct 2006 Budget disbursements in support of improving production in the agricultural sector totalled $40 billion.

176. This includes $2.4 billion availed for the tobacco crop and $14.2 billion for the 2006/07 summer crop.

177. Government, however, has no capacity to meet the total financing requirements of the agricultural sector. Government will continue to play its part, and expects greater involvement of the private sector including the banking community. Historically, the banking community has funded the operations of commercial farmers.

178. Under the auspices of the National Economic Development Priority Programme, the private sector is being encouraged to go into the production of their requirements of feedstock for processing such as wheat and soya bean. I would like to challenge the private sector to fully participate in this programme in the forthcoming season.

179. Mr Speaker Sir, the banking community had raised concern with security of tenure as a major factor limiting its capacity to support farmers. The issuance of 99 year leases to some of the A2 farmers by His Excellency the President on November 9, 2006 should allay these fears, and introduce an environment conducive for banking sector involvement in the financing of agriculture. Already, 275 of the first 346 applicant A2 farmers to the Land Board have become the first beneficiaries of 99 year leases.

180. Mr Speaker Sir, 99 year leases guarantee beneficiaries possession of the farms for the next 99 years. A2 farmers’ payment for improvements made by previous owners, including those they also make, enhances the available collateral for borrowing from banks and other lenders.

181. Mr Speaker Sir, the 99 year leases can be registered with the Deeds Office as in the case of title deeds, thereby enabling banks to recoup their money from the lessee or any other person to whom the lease might be transferred. The land, however, remains State property and can only be transferred with the consent of the State.

182. A1 model farmers will also soon be assured of security of tenure through the issuance of usufruct permits, which give the legal right to use and derive benefit from State land.

183. Mr Speaker Sir, these provisions make the lease agreement the ultimate security of tenure as provided for by our Laws. Hence, the 2007 Budget support to agriculture takes account of banks’ increased participation through the re-introduction and opening of facilities and windows closed due to fears over security of tenure from the onset of the Land Reform Programme. The mobilisation of resources through the banking sector will be under the guidance of the Reserve Bank.

Extension & Irrigation Rehabilitation & Development

184. Mr Speaker Sir, the above arrangements should allow Government to focus its interventions at rigorous extension support, rehabilitation and development of irrigation infrastructure. I, therefore, propose to allocate a total of $46.6 billion in support of mobility and operational expenses of AREX, Veterinary and Agricultural Engineering. I also propose to allocate an amount of $6.2 billion for agricultural training through various Agricultural Colleges falling under the Department of Agricultural Education.

185. Mr Speaker Sir, I further propose an allocation of $33.8 billion targeted towards irrigation rehabilitation and development.

186. I am further proposing a Budget provision of $60.2 billion for Agricultural support with respect to grain, tobacco, and livestock production for the 2006/07 season, the 2007 winter wheat crop and the requirement of the earlier part of the 2007/08 agricultural season. This intervention will augment ASPEF resources.

Viability of Agriculture

187. Mr Speaker Sir, ensuring that the farmer positively responds to all this support necessitates our full appreciation of the other constraints in agriculture. Some of the constraints evolve around creating the environment for the sustainable viability of the producer.

188. Government will, therefore, timeously monitor and review agricultural producer prices, balancing this against changes in costs of production and reasonable rates of return for the farmer.

Farmer Organisations

189. Furthermore, it is important that we support and utilise the expertise of farmer organisations under the Agrarian Land Reform Programme, especially in the distribution of inputs and exchange of farming skills and experiences.

190. The Ministry of Agriculture is urged to support and build capacity of registered farmer organisations. This should enable farmer organisations to be more effective and to add value to the farmer. The disbursement details will be given in due course.

Mining

191. Mr Speaker Sir, Government needs to support the mining industry take advantage of the firm demand and prices of minerals on the international market. Most critical would be the efforts to address the high costs of production affecting the viability of the sector.

192. Recognising the mining sector as a major source of inputs for our manufacturing sector and an earner of foreign exchange, it is necessary that we begin to increase our interventions in the sector along the same lines as in agriculture. Inadequate support has meant that such facilities as the Mining Industry Loan Fund remain quite under-capitalised to the extent that it fails to make any meaningful impact on the sector. I therefore propose to allocate $2.1 billion to the Mining Industry Loan Fund.

193. It is also critical that the relevant mining authorities always have properly coordinated early response mechanisms to deal with situations of illegal activities that undermine the realisation of foreign exchange.

194. Notable examples include the protection of deposits of diamonds and other precious minerals currently under siege from illegal miners in the Marange area.

195. To curtail leakages of minerals and to harness foreign currency earnings from the mining sector, I propose that, with immediate effect, all unregistered small scale mining operations be registered with the Ministry of Mines and Mining Development and all major mining zones declared ‘protected areas’ manned by security forces.

196. I, therefore, welcome the measures taken to ring-fence and protect the Marange diamonds deposit, which include support for improved technical expertise in diamond evaluation and putting up security structures in the area.

197. The capacity of the Ministry of Mines and Mining Development is set to be enhanced given the allocation I hereby propose an allocation of $4.9 billion, for acquisition of technical equipment and operational mobility of the technical departments of the Ministry.

Tourism

198. Mr Speaker Sir, the tourism sector which is facing challenges ranging from negative portrayals of the country, to erratic fuel supplies, has been identified under the NEDPP as one of the sectors with a quick turnaround potential. In support, Government is upgrading and improving key infrastructure facilities such as airports and dry-land border posts, among others.

199. Furthermore, Government is supporting initiatives by the tourism industry for the rehabilitation of our tourist facilities, as well as ensuring sustainable energy supplies. I am therefore proposing to allocate $10.4 billion for the completion of various tourism infrastructure projects in the Gonarezhou Trans-frontier Park.

200. Meanwhile, the Zimbabwe Tourism Authority is finalising details of establishing a Tourism Development Fund to support all critical tourism projects.

Value Addition & Import Substitution

201. Mr Speaker Sir, Government acknowledges the challenges that continue to hamper capacity utilisation in the manufacturing sector, resulting in the non-availability of some commodities on the market. Hence, our interventions and strategies also need to target the sector along the same lines as in agriculture.

202. Mr Speaker Sir, our interventions have focused firstly on capacitating companies to increase output. This should reverse some of the situations where capacity utilisation in industries had severely declined, consequently creating huge import demand pressures for commodities that could actually be produced locally.

203. Secondly, Government is supporting the re-orientation of our industries’ production patterns through promoting value addition and processing raw materials into finished goods in order to increase export realisations.

204. This is being complemented by support for companies that, where applicable, capitalise on excess capacity by entering into toll manufacturing arrangements. Already, there are nine companies that are engaging in toll manufacturing at various levels, with another nine ready to start. These are benefiting from support from the Reserve Bank, as well as ZIMRA concessions on the operation of bonded warehouses for the imported raw materials.

205. Facilities already in place, and which require further support, include the resuscitation of distressed companies, of which a concessionary $5 billion Fund is being managed by the Infrastructure Development Bank.

206. Mr Speaker Sir, of these resources, disbursements have gone smoothly with $3.3 billion having been drawn down as of end of October 2006. Through this intervention, 23 firms mainly in the manufacturing and export sectors were bailed out resulting in 10 000 jobs being saved. Applications for the remaining $1.7 billion are at various stages of consideration.

207. Budget support for distressed companies can, however, only be a short term phenomenon. We will, therefore need to take measures to improve the business trading environment through addressing factors causing financial distress and affecting the viability of industry. Central is the improvement in the macro-economic environment characterised by low inflation and stable interest rates.

208. Furthermore, the 2006 Budget availed $500 million to the Infrastructure Development Bank to establish the Import Substitution and Value Addition Fund. In this regard, 15 projects in agriculture, manufacturing, mining and tourism have been initiated and are at various stages of implementation.

209. I am, therefore, proposing additional financial support for Import Substitution and Value Addition Programmes amounting to $6.8 billion in the 2007 Budget.

210. Such financial support should be complemented by policies that promote investment, Value Addition and Import Substitution, as well as the continued viability of exporting and the removal of other distortions undermining sustainable business activity.

Energy Supply

211. Mr Speaker Sir, the difficult foreign exchange environment makes it necessary that we maximise the limited foreign exchange we have through better coordination of fuel procurement.

212. Currently, there are too many individual fuel importers. Such a situation is eroding the benefits of centralised bulk procurement and increasing the cost of procurement through the use of road transportation, instead of the pipeline. This is also causing serious damage to the road network. These high transport costs are ultimately being passed on to the consumer.

213. Our efforts to maximise on fuel procurement should be complemented by further support for the development of alternative sources of energy, such as bio-diesel, ethanol, solar, wind, etc. Already, a Solar Energy Policy document is in place. I will therefore be providing resources to support the commercialisation of these projects, some of which are being undertaken to by our technical colleges.

214. With regards to electricity generation and supply, appropriate pricing structures still remain to be put in place. An Inter-Ministerial Committee has been established to look into the pricing structure of electricity.

Price Distortions

215. Mr Speaker Sir, the removal of price distortions in the economy is critical to improving the operational environment for the business sector, guaranteeing their viability and the sustainability of production and achieving macro-economic stability.

216. In such a dynamic macro-economic environment, Government is closely monitoring the emergence of price distortions and undertaking regular corrective review of prices and marketing arrangements.

Grain Selling Prices

217. Consistent with this, Government recently reviewed the producer prices for maize and wheat to $52 450.30 and $217 913.40 per tonne, respectively in order to guarantee the viability of farmers. This is being followed up by corresponding review of the GMB maize and wheat selling prices to millers, already approved by Cabinet.

218. Details of the new maize and wheat selling prices to 218. Details of the new maize and wheat selling prices to millers will be announced by the Minister responsible for Agriculture, following the normal stakeholder consultations.

219. The implied subsidies per tonne of $51 400 for maize and $204 700 for wheat, at the current GMB selling prices of $600 and $12 300 respectively, distort consumption patterns and create room and opportunities for speculative and rent-seeking behaviour.

220. Given the prevailing GMB selling prices of maize and wheat to millers, the overall subsidy for this year’s maize and wheat crops would amount to $26 billion and $53 billion, respectively. These amounts had to be borne out of the 2006 Budget and the Reserve Bank. Such levels of untargeted and wholesale subsidies undermine the capacity of the Budget to intervene in other critical areas.

221. It is only through the removal of the existing mismatch between the buying and selling prices of these commodities that the requirements of this nature can be shifted away from the fiscus. I am confident, Mr Speaker Sir, that this can be avoided in 2007 by the adoption of prices that guarantee the viability of farmers and ensuring the ability of the Grain Marketing Board to finance and maintain the Strategic Grain Reserve.

222. I propose to set aside $70 billion to meet the funding gap that may arise for payments to grain producers.

Fuel

223. The fuel market remains characterised by different prices for liquid petroleum products, notwithstanding recent efforts to unify petrol and diesel prices. This has perpetuated rent seeking behaviour in the pricing of fuel products, with some of the cheaper NOCZIM fuel ending up being resold at a premium on the parallel market by those able to access it.

224. The removal of the distortions inherent in the above arrangement therefore necessitates that bold measures be taken to unify fuel prices. This should be supported by ensuring that those able to utilise free funds to import fuel are permitted to do so at a reasonable return. Further, review of fuel prices should be in line with the already agreed price trigger mechanism arrangements.

225. Mr Speaker Sir, Government has made strides towards the production of alternative sources of fuel. I propose to allocate resources amounting to $10 billion for further capitalisation and operational expenses of the development of bio-diesel and liquid fuel from coal. Thereafter the two projects will be financed through private sector investments since they are commercial by their nature.

Local Authority & Public Enterprise Tariffs

226. Mr Speaker Sir, price distortions, alongside mismanagement, poor corporate governance and an inadequate legal framework, are also contributing to the serious deterioration in Local Authorities and Public Enterprises’ service delivery.

227. In the absence of Budget capacity to provide for the revenue shortfalls, delivery of such basic services as water, energy, sewerage waste management, refuse collection and infrastructure maintenance of roads, traffic lights and public lighting can no longer be taken for granted.

228. This has left some Local Authorities and such Parastatals as ZINWA in situations where they continuously call on the fiscus and the Reserve Bank to support procurement of daily consumables such as chemicals for water purification, as well as meeting their salary obligations.

229. Cognisant of this, measures are being instituted to address the anomaly under which the cash recoveries from the delivery of services by Local Authorities remain inadequate to cover costs.

230. This is covering the review of pricing structures for rates, water, electricity and other tariffs in line with inflation developments, to augment the economic and efficient operation of Local Authorities and Public Enterprises.

Foreign Exchange Generation

Ring-fencing Export Generating Sectors

231. Mr Speaker Sir, the experience over the past few years has amply demonstrated the need for a vibrant exporting sector in supporting the turnaround programme.

232. Inherent in the prevailing multiple export support arrangements is failure to fully and consistently compensate all earners of foreign exchange for rising domestic production costs. In this environment, generating additional foreign exchange remains one of the biggest challenges to economic recovery.

233. Against this background, Government remains alert to the loss of exporter viability caused by the continued rise in the costs of production, necessitating urgent need to ring-fence export generating sectors. These sectors include manufacturing, mining, tourism, tobacco, horticulture and cotton.

234. Hence, Mr Speaker Sir, the Reserve Bank will implement an exchange rate framework that converges the existing duality in the foreign exchange market, through a combination of rapid dis-inflation and fair compensation to exporters and other generators of foreign exchange.

235. The Reserve Bank Governor will unveil the exchange rate framework, in his forthcoming Monetary Policy Statement.

Non-resident Remittances

236. Mr Speaker Sir, the Reserve Bank has already identified Non-Resident Remittances as an important potential source of foreign exchange if properly managed through schemes supported by fiscal and monetary incentives.

237. Appropriate supportive measures, targeted at supporting investment and other foreign exchange inflows from non-resident Zimbabweans, are also going to be unveiled by the Governor in due course. These will be reviewed regularly.

Strategic Partnerships

238. The injection of foreign exchange into the economy will materially enhance economic recovery prospects. Such an injection would allow for foreign exchange reserves build up and enable the country to begin to deal with its external payment arrears, putting the country firmly on the path to restoring its credit worthiness.

239. Mr Speaker Sir, last year, we identified strategic partnerships through the privatisation and commercialisation of a number of Public Enterprises, under some of our Look-East Policy initiatives, as a potential source of generating significant foreign exchange. High potential ‘quick wins’ include the National Railways of Zimbabwe, Tel-One and Net-One, Air Zimbabwe, and the Zimbabwe Iron and Steel Company.

240. Regrettably, Mr Speaker Sir, we have so far only been able to make minimal progress, if any. Moving forward with this process will require that we put in place a comprehensive framework with set targets and identify the potential enterprises and timeframes.

241. I will, therefore, be appraising Honourable Members on a regular basis on progress on the privatisation and strategic partnerships for the Parastatals.

Management of Public Enterprises

242. Mr Speaker Sir, I have already raised the need for regular review of tariffs to economic levels, and embarking on strategic partnerships as part of the interventions to effectively deal with the inefficient operations of most Parastatals.

243. Over and above this, widespread cases of inefficient operations, inconsistent with our other efforts to reduce inflation and improving economic performance, will have to be addressed. Central to this would be the improved accountability of management and boards of Public Enterprises.

244. Mr Speaker Sir, respective Ministers have played a part in the prevailing operational inefficiencies of some Public Enterprises. On one extreme, is routine interference which undermines the accountability of the governance structures implied under the various legislation establishing our Parastatals. On the other, are situations of abrogation on legislated responsibilities, paying no attention to the ‘goings on’ in the Parastatals we are supposed to supervise.

245. Cases where boards and management sit back in the midst of serious operational deficiencies while waiting for Government intervention bear testimony to this.

246. Most Parastatals continue to operate for years without any proper accounting systems, notwithstanding that each Minister responsible for a particular public enterprise is required to table annual audited accounts of the particular parastatal in Parliament at least six months after the end of each financial year. Furthermore, key Parastatals are also operating without boards and substantive chief executive officers.

247. Mr Speaker Sir, it is high time that management and boards are made accountable through performance agreements and accorded the space to run these Public Enterprises as viable commercial entities.

Environmental Sustainability

248. Mr Speaker Sir, in my nationwide pre-Budget consultations, stakeholders raised concern that ineffective monitoring and enforcement of regulations on the protection of the environment has become a major threat to environmental sustainability.

249. Illegal mining activities such as gold and diamond panning, veld fires, rampant poaching, water bodies pollution by industries, improper cultivation practices, and wanton cutting of trees in the newly resettled areas were all cited as causing tremendous damage to our environment.

250. On timber estates, illegal occupations, often responsible for numerous large forest fires and the destruction of plantations, are also playing their part in rapid environmental degradation right under our noses. Furthermore, uncontrolled logging activities are also resulting in deforestation.

251. This is also viewed as contributing to the changes in the weather pattern, with the Southern regions of our country becoming drier as the rainfall levels decline with each passing season.

252. In this regard, the Budget is supporting the Environmental Management Agency, established as a successor to the Department of Natural Resources, mandated by Government to oversee the sustainability of the environment.

253. I therefore propose to allocate $25.8 billion in order to enhance the capacity of the Agency to enforce environmental protection.

Social Service Delivery

254. Mr Speaker Sir, the adequate provision of social services, at both Central and Local Government levels remains a priority for the Budget.

255. Hence, fiscal interventions to arrest and reverse some of the declining provision of basic services are necessary. Innovative financing strategies to broaden the sources of financing beyond Government also need to be explored.

Health

256. Mr Speaker Sir, the persistent high inflationary environment, coupled with the shortage of foreign currency and manpower, is compromising provision of quality health service to the people. Improvement in levels of funding for medical drugs and supplies as well as hospital and clinical equipment remains critical.

257. I therefore propose to allocate a sum of $590.1 billion towards the public health delivery services. The amount proposed includes $345.5 billion for funding of central hospitals and $9 billion preventives programmes which include Immunisation, TB and Malaria. Employment costs constitute 14.5% of the proposed Vote allocation.

258. Development and rehabilitation of health service infrastructure, including clinics, mortuaries and equipment accounts for $39.7 billion.

Access to Education

259. Mr Speaker Sir, it remains necessary that Government shares the direct costs of tertiary education with the beneficiaries. This also improves accountability among students in tertiary institutions, as well as ownership of the institutions’ facilities.

260. Honourable Members would have noted the many instances where, surprisingly, even well endowed parents display inability to pay tertiary education fees when they were able to get their children through ordinary and advanced level education without State assistance.

261. Government has therefore put in place mechanisms that embrace means testing, for support to students under tertiary training institutions. Means testing will now draw input from school authorities, both primary and secondary to improve on reliability of assessments of students to be targeted.

262. Quality primary and secondary school education, a right of every child, appears to have been negatively affected by inadequate funding over the last few years. Through the Annual Budget and contribution of partners, including parents, it will be important that due attention is given to the revitalisation of the education system.

263. In this, the 2007 Budget, I propose to allocate an amount of $7.6 billion in relation to tuition and learning materials at schools. This allocation will be disbursed on the basis of improved per capita rates.

264. Mr Speaker Sir, I also propose to allocate an amount of $4.0 billion for the maintenance of schools in rural areas, targeting at least four schools per District. In addition, I propose to allocate an amount of $8.2 billion for the construction of schools, the objective being to phase out hot sitting in some schools as well as promote access to education by children in newly resettled areas.

265. To arrest the deterioration of assets and facilities at public institutions such as schools in rural areas, it has become necessary that we create a facility that enables access and quick disbursement of resources for minor repairs and maintenance. Government already operates a Building Grants facility to support and compliment efforts by communities and private organisations in constructing schools infrastructure.

266. I am aware that our communities fail to fully benefit from facilities of this nature that Government oftens puts in place due to lack of information on how they can access such facilities.

267. Mr Speaker Sir, I propose to allocate an amount of $2 billion for minor repairs and maintenance through the Rural Capital Development Fund which is represented in our Rural Districts. In the case of schools, Schools Development Authorities/Committees can access the resources on the basis of written applications directly to the respective District Education Officers responsible for Buildings. The District Education Officers will be responsible for submissions to the Rural Capital Development Fund.

268. For support regarding construction of education facilities, I propose to allocate $3 billion for facilities at both primary and secondary level. While administration of Building Grants remain with the Ministry of Education, Sport and Culture, modalities for applying and accessing resources should change as proposed above.

269. Guided by the need to enhance supervisory capacity of the Ministry of Education, Sports and Culture, I propose to allocate an amount of $6.0 billion to enable the Ministry procure vehicles for this purpose.

270. Mr Speaker Sir, for overall education delivery, the proposed allocation amounts to $721.9 billion, out of which $48.8 billion stands for administrative and teaching and learning expenses as well as capital transfers towards projects at State Universities.

Security

271. Mr Speaker Sir, it remains critical, given global security developments, that we ensure adequate funding is availed for the maintenance of peace, law and order as well as security. To this end, I propose to allocate a sum of $255.7 billion for recurrent expenses, excluding employment costs, and $60.8 billion, for the Police, Army, Airforce and Prison Services.

272. Mr Speaker Sir, the Nation remains endeared to friendly countries, which remain in support of our efforts towards training and re-equipping our Forces.

Combating Indiscipline & Corruption

273. Mr Speaker Sir, the stakes on the fight against indiscipline and corruption must be stepped up. We, therefore, have to set aside adequate resources in support of the institutions of Government responsible for fighting corruption and combating the rising prevalence of indiscipline in the economy. This is manifested through economic crime and rampant abuse of scarce public resources and other ills that threaten the very fabric of our society.

274. Over and above declaring war against indiscipline and corruption, the successful waging of this War will require that we also strengthen the laws and institutions dealing with economic crimes with a view to introducing harsher penalties, including the forfeiture of ill-gotten assets.

275. Pursuant to this, I propose to allocate funds towards supporting surveillance units with powers and skills to expose abuse of such assets as fuel, motor vehicles, subsidised grain, inputs, veterinary drugs, among others.

Public Service Conditions

276. Mr. Speaker Sir, the availability of the critical human resource skills is central to public service delivery and implementation of public projects.

277. The erosion of real incomes in the prevailing high inflation environment has left Government with largely an unmotivated and poorly paid public servant.

278. Government continues to lose skilled manpower, trained at great cost in all the critical areas, including health, education and technical fields.

279. Mr Speaker Sir, it is therefore imperative that the 2007 Budget builds Government’s capacity to retain and attract specialised and strategic skills, so as to capacitate institutional ability to fully implement National programmes.

280. In the prevailing hyperinflation environment, some of the necessary measures should include timely review of conditions of service, taking account of requests by the Public Service Associations for smaller but more periodic adjustments, as opposed to larger infrequent ones.

281. I propose that the review of the remuneration of civil servants be done on a quarterly basis in line with the inflationary developments in the economy. I therefore propose to set aside an envelope of $1.4 trillion for the 2007 Public Services Employment Costs.

282. In order to ensure the attainment of quarterly adjustments in a manner that curtails inflation, Treasury will limit disbursements out of this envelope to an average $40 billion per month, across the Public Services, during the first quarter of 2007. I therefore urge teams to the Public Service Joint Negotiating Council to be guided accordingly.

283. The significant provision, which represents a 1 205% growth over the 2006 provision, is motivated by the need to address the brain drain that is crippling the operations of Line Ministries hence the deterioration in service delivery. While this resource envelope will not fully reverse the erosion of civil service incomes, the capacity of the economy to sustain the current civil service structure is the determining factor.

Non-monetary Benefits

284. Mr Speaker Sir, I have also taken note of the requests to augment non-monetary benefits of the civil servants, as part of the efforts to cushion them from the effects of the erosion of disposable incomes.

285. In this regard, support for such non-monetary benefits as access to housing and transport, will facilitate the provision of decent accommodation and affordable transport for lowly remunerated public servants.

286. I, therefore, propose to allocate $3 billion towards the expansion of the Public Service Housing Loan Scheme.

287. I also propose to allocate $852 million towards the Civil Servants Vehicle Loan Scheme.

Skills Retention

288. Mr Speaker Sir, notwithstanding the above Budget provisions to cushion civil servants through the review of conditions of service during 2007, additional intervention measures are still necessary to curtail further loss of skills.

289. Honourable Members will agree with me and acknowledge that the ultimate solution remains stabilising the macro-economic environment and realising sustainable growth.

290. In the transition, however, further Budget support for the Skills Retention Fund should go someway towards alleviating the brain-drain in some of the critical areas of the public sector.

291. Hence, I propose to allocate $5.5 billion to the recently launched Skills Retention Fund for the benefit of targeted critical skills in the Public Service. This will allow scope for the provision of premiums to be paid to expertise in key posts and professions. The funding requirement for this initiative is much higher and, to this end, Government will solicit for contributions from friendly cooperating partners.

Pension Reform

292. Mr Speaker Sir, I have previously alerted the House that we also have a serious and growing pension payments.

293. The resources being raised from the contributions of serving members is inadequate to cover retirees’ pension payments. This has limited our capacity to fully index to two thirds of a serving member’s current salary. A sustainable arrangement would be the introduction of a Defined Contribution Pension Fund Scheme.

294. Mr Speaker Sir, beginning January 1 2007, all the pension deductions will be set aside for the establishment of the above Fund as a prelude to this. We still, however, need to provide funds to meet due pensions under Constitutional and Statutory appropriations.

Housing Delivery

295. Mr Speaker Sir, housing is a basic necessity which can empower and enhance the social security of households, as well as stimulate our construction and other related sectors.

296. However, with average small stands costing anything above $3.5 million, and a three bed-roomed house in the high density area costing around $30 million, it is becoming increasingly unaffordable for the average family to purchase property.

ZimJournalists Arise will publish Part Two of the 2007 Budget tomorrow.

2006-11-30T04:48:00.000+02:00

Budget Day Today

Today Finance Minister Herbert Murerwa is going to announce the 2007 budget. This is going to be most challenging for the hard-drinking former diplomat. The Zimbabwean economic story is not new, as we all experience it in our day to day lives. Journalists will have to look at this critically, as we suspect it might just be a non-event like any other budget in the past few years.

By Reuters
Zimbabwe's embattled government will present its annual budget today week with a traditional prayer for salvation, but analysts say the plan is unlikely to ease a crisis savaging the economy.

Herbert Murerwa, the finance minister, will unveil the 2007 budget in parliament tomorrow for an economy that has shrunk 40% in the last six years.

Economic analysts are not expecting much from Murerwa, who traditionally ends his budget speeches with a plea to God to help save the country, and Robert Mugabe, the Zimbabwean president's government has widely missed all its major targets in the current budget.

"I don't think anyone is expecting a miracle," said John Robertson, the private economic consultant. "On their record, this is another number-crunching exercise, which will be delivered with a lot of promises and a lot of hot air," he said.

Inflation, which the government had hoped to bring down to 80% by this December from over 400% a year ago, has shot up to 1 070.2%. The International Monetary Fund sees it climbing to over 4 000% in 2007.

Off target
The budget deficit, initially forecast to dip to 4.6% of gross domestic product (GDP) from 5% in 2005, is also likely to be way off target after the government adopted a supplementary budget in July, three times the size of the original 2006 budget, citing run-away inflation.

Forecasts that the economy, whose GDP has been shrinking since 1998, would grow up to 3.5% in 2006 have since been revised downwards to 0.3-0.6% growth. Analysts see another contraction in Zimbabwe which the World Bank says has the fastest shrinking economy outside a war zone.

Robertson said the economy was doomed if the government did not address fundamental structural problems, including committing itself to respecting private property rights.

Reuters
Meanwhile NewsNet Reports That Today's Budget Will Provide Some Answers,

Dr Murerwa says enough consultations have been done on the 2007 national budget, with focus now being on stimulating production from all key economic sectors as well as formulation of policies aimed at attracting both domestic and foreign investment.

Dr Murerwa says enough consultations have been done on the 2007 national budget, with focus now being on stimulating production from all key economic sectors as well as formulation of policies aimed at attracting both domestic and foreign investment.

Dr Murerwa made the remarks while addressing a pre-budget stakeholder meeting in Harare.

He said the effective policies will be implemented in the forthcoming budget to deal with unscrupulous business people who either create artificial shortages or unilaterally increase prices for goods.

Murerwa said while the prevailing economic challenges have impacted on the attainment of set objectives, ministries have been urged to live within their budgets.

Dr Murerwa also expressed optimism that with a promising 2006-2007 agricultural season, most of the economic growth targets will be achieved.

Really Doctor???

2006-11-30T04:35:00.000+02:00

Latest FewsNet Report On Food
Yesterday ZimJournalists Arise published Part One on the October Fewsnet report.Today we ciruclate Part Two of the report.

Widespread Disparities In Sub-National Cereal Availability

Maize meal availability in shops throughout the country improved markedly in September and early October, particularly in southern Zimbabwe where production does not normally satisfy local demand. The improved availability is attributable to the increase in supplies of grain and maize meal distributed to millers and shops by the GMB, augmented by food aid distributions in September. In addition, limited amounts of grain are moving from surplus to deficit areas through private traders.

Maize grain is still available for localized farmer to farmer trade in most parts of the central and northern districts of the country. Prices vary considerably from one place to another depending on the area's relative availability and accessibility of maize grain. In the green colored zone covering much of Mashonaland provinces and the northern parts of Midland Province, open market grain prices ranged from Z$23 to Z$49/kg in the first half of October 2006. Maize grain was generally readily available in most of this zone in October. Able bodied members of poor households could find work with better off households, providing their labor in exchange for maize. Opportunities for casual labor in agriculture are set to increase with the onset of the rainy season next month.

The highest maize grain prices were recorded in the greater parts of Manicaland and the two Matebeleland provinces. This zone is colored red in Figure 1. Open market maize grain prices ranged from Z$87 to Z$114/kg during the first half of October 2006. The relatively high maize prices in this zone should be worrying because the majority of the population in the zone belongs to cereal deficit households that depend on the market for their cereal needs.

The Zimbabwe Vulnerability Assessment Committee (ZimVAC) food security assessment from May 2006 estimated about 17 percent of Zimbabwe's population, approximately 1.4 million people, will be food insecure at the peak of the hunger period. The yellow and red colored zones in Figure 1, where maize prices are at least Z$52/kg, include areas where the ZimVAC assessment found more than 19 percent of the population to be food insecure.

In Binga, Hwange, Rushinga and Mudzi districts, between 31 and 37 percent of the population was food insecure. In October, the same districts recorded the highest maize prices of around Z$115/kg. The central districts of the country were assessed to have the smallest proportions of food insecure people, and generally correspond to the green zone in Figure 1. The southern half of the country which is generally the traditionally low crop producing parts of the country has the highest concentration of the food insecure rural population.

Since maize grain prices and maize meal prices have increased significantly since May, while incomes may not have adjusted accordingly, the size of the food insecure population could be higher than assessed in May. Joint WFP/FEWSNET monitoring will provide some information that could be used to update the food security situation in October and November.

High cost of living continues to restrict household food access

Household food access continues to be severely restricted by the ever-increasing cost of food and cost of living in general. The food poverty line for September 2006 was $40,000, 26 percent higher than in August 2006. The agricultural worker's minimum wage, the most common monthly wage, was Z$4,160 in September – just 10% of the food poverty line* for the same month. This is putting enormous strain on affected households, forcing them to engage in various income, consumption and expenditure coping strategies.

Annual inflation reached new heights in August 2006 of 1,205 percent, and fell to 1,023 percent in September 2006. There is no reason to believe the downward trend in annual inflation will be sustained; rather it is more likely that the rate of inflation will increase further. Given the rapid rise in the cost of living, the majority of both urban and rural households' incomes are not keeping pace. In the urban areas, where households obtain most of their food from shops.

Edited

2006-11-30T04:23:00.000+02:00

Opinions On The Zimbabwean Media Sought

Zimbabwe Journalists Arise invites all journalists, activists, organizations, who have ideas or thoughts on the state of the Zimbabwean media, to send in their articles for publication on our blog. Articles should go beyond the obvious problems of the media in our country, but should focus on views from a special interest group on how best journos can cover their activities, the good, the bad and the ugly. Some of the areas can be human rights, Aids, the economy etc, the list is endless.

Political parties are welcome with their observations, complaints etc. So guys let those articles start rolling in, pictures are welcome and a brief summary of the interests you represent would be welcome. We will try to keep most articles as they are, although the Editor of the blog reserves the right to edit material on the basis of length and clarity.
Thank you

CADEGO Urges Zimbabwe Media To Penetrate Rural Areas

By CADEGO National Co-ordinator Farai Muguwu
Farayi Muguwa is the National Co-ordinator of the Civic Alliance For Good Gvernance, which is a Mutare based NGO. It mission is to promote good governance through advocacy and lobby meetings, community training workshops, Fliers, Newsletters and mass mobilization. CADEGO is represented in every community by volunteer committees, which report to the national coordinating committee on issues pertaining to democracy and good governance. CADEGO also work with churches, political parties and local governments to have its message reach a wider audience. Mr Muguwu is also a prominent political analyst who is regularly sought after for interviews in the media

Dear Zimbabwean Journalists

In my view i think the Zimbabwean media has responded with great courage and determination to the challenges facing Zimbabwe today. That democracy is still a dream to be realised is largely due to the stubornness and insensitivity of the Zimbabwean government.

Creative initiatives such as zimbabwe journalists arise, studio 7 Voice of America, Shortwave radio, Newzimbabwe.com, the Zimbabwean and many others are a testimony that the media has managed to circumvent the legal obstacles existing in Zimbabwe today. However, the media can do more to hasten the day when a new Zimbabwe can become a reality.

The media must continue to give the people a voice to critique government policies and express their feelings. As more and more people continue to speek their views the culture of fear will be eventually broken. The media must not only concentrate on urban areas but must explore rural Zimbabwe where the greatest poverty is of information. Rural people are starved of information and yet we blame them for letting the nation down. When these people suffer human rights abuses the media must give them a voice of solidarity and encourage them to stand up for their rights. because few journalists dare investigate what happens in Honde Valley or Nyamapanda rural people feel like they are disconnected from whats happening in Zimbabwe.

They are forced to comply with what they dont believe in because they have no voice to say no. Let us open up rural Zimbabwe through media coverage.

Finally lets remain focussed. The crisis in Zimbabwe today is a crisis of governance. Its not about Britain trying to recolonise Zimbabwe. The media must point people to the real problem: that of misgovernance and poor leadership. The point must be clear that we are being poorly governed and as a result our beautiful country lie in ruins.

At CADEGO we have held several leadership workshops with traditional leaders in Makoni West, Mutasa South and Mutare South constituencies. We have made it very clear that a good leadership is key to development. We have pointed out the human rights abuses committed by some traditional leaders to suppress opposition supporters in Zimbabwe. We have defied POSA because it is an unjuat law. We dont seek police clearance because they denied us the first time we sought it for our traditional leaders workshop held at Chiware Business Center in Rusape.

We just organise our events as if POSA is not there. This is our approach and we persuade all democratic forces in Zimbabwe to defy unjust laws that contradict natural law. We invite you to cover our workshops if you have time to do so.

Our victory over the dictatorship is nearer now than when the struggle began.

2006-11-30T04:17:00.000+02:00

Latest Zimbabwe News Headlines

Stories by IRIN

WOZA Activists Beaten And Arrested

More than 60 protesting Zimbabweans, some carrying babies, were arrested and the police in the country’s second city, Bulawayo, allegedly assaulted at least another 40 on Wednesday.

Women of Zimbabwe Arise (WOZA), was holding a march to mark the launch of a 'People's Charter', a declaration on political and economic rights, and the '16 Days of Activism Against Gender Violence', an international campaign running until International Human Rights Day on 10 December.

The demonstrators had congregated near the government offices in the city centre, where they began reading out the People's Charter compiled by WOZA, which calls on the state to provide affordable housing, education and healthcare, when about 30 riot police arrived and started arresting them.

IRIN report 63 men and women were taken to the Bulawayo central police station, and another 40 demonstrators were rounded up and taken to a neighboring police drill room and allegedly beaten. Police then took six demonstrators, including a woman who allegedly had her leg broken in the drill room, to a public hospital for medical attention.

The police spokesman in Bulawayo said they were unable to confirm the arrests and asked IRIN to telephone again on Thursday.

Meanwhile, the Zimbabwe Congress of Trade Unions (ZCTU) announced on Wednesday that it intends to sue the government for about US$5.3 million for the alleged assault and torture of several of its members arrested during a demonstration in September.

The state has three months to respond. Fifteen ZCTU members, including top officials, are each claiming between $239,000 and $319,000. Members sustained varying degrees of injuries, and some are still in plasters three months after the beatings.

Also, ZimJournalists Arise understands that the Save Zimbabwe Campaign has run out of steam I its second week of its “Sounds of Freedom Campaign” we hope things will look up again soon. While WOZA also a member of the Campaign was holding its own demos instead of making some noise, is something to think about. How long will Zimbabwean civic organization continue to hole piecemeal, non-effective individual actions.

2006-11-29T02:30:00.000+02:00

October 2006 FewsNet Report

Cereal availability in Zimbabwe this marketing year depends upon the country's ability to finance the planned imports of 565,000 MT of maize and about 230,000 MT of wheat. The poor state of Zimbabwe's economy will make raising the required funds enormously challenging. The availability of maize meal in shops throughout the country improved in September and early October, particularly in southern Zimbabwe, where purchase of cereal grown in more productive areas of Zimbabwe is required to meet local demand. The ever-increasing cost of food and cost of living are making market purchase to fill food gaps prohibitive. Local maize prices are highly correlated to local food security: areas that were assessed to have the highest concentration of food insecure people recorded the highest open market grain prices in October 2006. The problem is exacerbated by the Grain Marketing Board's (GMB) limited capacity to redistributed available maize throughout the country, which fuels higher grain prices on the open market. Fuel and fertilizer shortages persist with hardly any time left before the start of the 2006/07 summer cropping season.
Current Hazard Summary

Soaring annual inflation was measured in September 2006 at 1,023 percent.
The cereal deficit for the 2006/07 marketing year is projected to be about 22 percent of total domestic needs.
Shortages of fertilizers and fuel are likely to going to reduce food and cash crop production in the 2006/07 agricultural season.
El Nino conditions were confirmed in September 2006, but it is too early to draw definitive conclusions about its likely impacts on the current agricultural season.
National cereal availability
Zimbabwe's cereal availability in the 2006/07 consumption year depends on the country's ability to import the planned 565,000 MT of maize and about 230,000 MT of wheat on time. This level of imports will not only ensure that the country has enough cereal for the current consumption year but will also have maize stocks sufficient feed the Zimbabwean population for two and half months after the next harvest in April 2007. However, raising the required funds for the planned imports is likely to be an enormous challenge for Zimbabwe, given its under-performing economy. Furthermore, the forecasted wheat production is still being harvested, and a significant proportion of the potential harvest is threatened by the onset of the 2006/07 rainfall season.

Wide disparities in sub-national cereal availability

Maize meal availability in shops throughout the country improved markedly in September and early October, particularly in southern Zimbabwe where production does not normally satisfy local demand. The improved availability is attributable to the increase in supplies of grain and maize meal distributed to millers and shops by the GMB, augmented by food aid distributions in September. In addition, limited amounts of grain are moving from surplus to deficit areas through private traders.

ZimJournalists Arise will publish Part 11 of this report tomorrow.

2006-11-29T02:00:00.000+02:00

Zimbabwe Army Demands Right To Snoop While Nigeria Opens Freedom To Information

Reuters reports that the army says it wants the state-run Tel One to have a monopoly on international cellphone traffic, so that they can monitor calls, in the interests of national security. Meanwhile I-JNET reports that Nigeria seeks to relax its access to information laws.

The Nigerian Senate passed a 35-clause Freedom of Information Bill on November
15, which would allow Nigerians to access public records and other information
more freely if it becomes law.
The bill would permit citizens the right to access public records while
sustaining the principles of maximum disclosure and declassification of public
information, according to Senate spokesman Victor Ndoma-Egba.

The measure now must be signed by President Olusegun Obasanjo or approved by a
two-thirds majority of the national legislature before it will become law,
according to information at the Web site of the Open Society Justice Initiative.

The only significant amendment to the bill, which Ndoma-Egba said would promote
openness in governance and consequently transparency, called for a three-year
imprisonment for those who falsify or destroy official records to avoid
disclosing them.
Although the bill would allow the public to apply for access to government
records, it also allows government and public institutions the right to refuse
the disclosure of any records containing materials including examination data,
plans for buildings not constructed with public funds, or any documents that
would compromise security if released.

MeanwhileFormer Information Minister Professor Jonathan Moyo's defamation suit against Zanu-PF National Chairman and Chief Speaker John Nkomo and former Home Affairs Minister Dumiso Dabengwa was heard in the Bulawayo High Court yesterday.

Moyo is suing Nkomo and Dabengwa for "lying" to President Mugabe about plans to topple him. Moyo is suing the two for $2 billion.

2006-11-29T01:42:00.000+02:00

Journalism News Around Africa

Swazi Times Newspaper Sued Again

By MISA/IFEX
Windhoek)

The "Times of Swaziland" newspaper has been sued for E75,000 (approx. US$10,000) by a man accused of recently bombing government structures and who is facing high treason charges at the High Court of Swaziland.

Vusi Shongwe states in court papers that on February 8, 2006, the "Times" published his picture on the front page next to a headline saying "Bomber" in bold typeface. He argues that the accompanying article was wrongful and defamatory to his person.

The "Times", on the other hand, states in court papers that Shongwe's picture was erroneously published. The newspaper says it had no intention of publishing Shongwe's photograph. As a result, the newspaper states, it acknowledged its mistake by publishing an apology the following day.

This is one of several lawsuits against the "Times" pending in the courts. The newspaper has lost three cases of defamation in 2006. However, in mid-2006, the newspaper successfully appealed against a E750,000 (approx. US$116,000) compensation order awarded to the late Deputy Prime Minister Albert Shabangu for alleged defamation (see IFEX alerts of 19 May 2006 and 9 August 2005).

The MISA Swaziland is concerned, and views the continuous lawsuits against the media in Swaziland, particularly against the "Times", which is the only independent newspaper, as a serious threat to press freedom, media diversity and the right to free expression. Already, the lawsuits are having an impact on these rights, as the Swazi media is becoming increasingly docile. As a result, stories on sex and murder currently dominate the headlines as the media tries to play it safe.

Meanwhile Reporters Without Borders reports that

Abdullahi Yasin Jama of privately-owned Radio Warsan by militiamen loyal to the federal transition government in the western city of Baidoa(Somalia). They held him for three days and abused him physically after luring him to the presidential palace on 24 November 2006 with an invitation to a fake news conference.

"The treatment Jama received was disgraceful," the press freedom organisation said. "His arrest and use as a plaything by militiamen was an act of utmost cowardice. Somalia's journalists, who are trying to cover a war consisting of lightning raids, betrayals and news manipulation, must be left in peace by the belligerents, as the population has a right to know what is going on in their country. The transitional government cannot claim to want to bring democracy to Somalia while tolerating such behaviour."

Jama, who is also a correspondent for the Somali Broadcasting Corporation (SBC), a privately-owned radio station based in the northern city of Bossasso, received a call from a security official shortly after midday on 24 November inviting him to a news conference. Pro-government militiamen arrested him when he arrived at the presidential palace and took him to their base, where they repeatedly abused and humiliated him.

Omar Faruk Osman, the secretary-general of the Reporters Without Borders partner organisation, the National Union of Somali Journalists (NUSOJ), said Jama was arrested for reporting on the "massive presence" of Ethiopian troops in Somalia. NUSOJ's attempts to get the transitional government to free him met with rebuffs or expressions of bad faith, with officials claiming they were "unaware" of the case.

Jama was finally released on 27 November after Baidoa city elders interceded on his behalf, but he is still under surveillance by the militias and fears further reprisals.

2006-11-29T01:28:00.000+02:00

Journalism Briefs From Around The World

By Free Media Movement (FMM), Colombo

Senior Advisor to UNESCO and former President of Sri Lanka, Chandrika Bandaranaike-Kumaratunga, is seeking to take measures to ban a publication exposing details of her alleged corruption, misdeeds and human rights abuses in Sri Lanka.

As reported in an interview with the former President in the "Sunday Leader" newspaper on 12 November 2006, Chandrika Bandaranaike-Kumaratunga is on record as saying:

"Now there is a book published in absolute filth about me, going so far as to say that I, a former President, orchestrated the bomb attack on myself. Now that book was not banned. If they could ban the 'Da Vinci Code' from cinemas in Sri Lanka, I am going to write to the President and ask why this book was not banned. In fact, I wrote to the President today".

The book referred to is "Choura Regina" ("Rogue Queen") written by Victor Ivan, a well-known journalist in Sri Lanka. The book alleges that the gross misuse of power, high levels of corruption, severe human rights violations and nepotism can be directly connected to Chandrika Bandaranaike-Kumaratunga during her tenure as President.

Recalling the statement of the Asian Human Rights Commission (AHRC) on 26 October 2006, the FMM seeks urgent clarification from UNESCO on their response to one of their high-level spokespersons openly and grievously threatening the core values UNESCO and the UN is founded upon.
Edited

Ukraine Committs To Free Press

The President of Ukraine, Viktor Yushchenko, reaffirmed his commitment to a free press and democratic values in a meeting with the World Association of Newspapers, yesterday .

"We don't think any kind of return to the past is possible; it's out of the question," said Mr. Yushchenko, who was swept to power in the Orange Revolution two years ago.

Speaking to the Board of the Paris-based WAN, meeting in Kiev, the president said: "I believe the natural progress of Ukraine depends on freedom of speech and freedom of the press. It is extremely important for the country to have free media."

Press freedom has brought economic benefits to the press industry, he said: print circulation increased 6.7 million copies to 22.7 million in the past year, foreign and international press sales have increased 25 percent, and the advertising market is growing.

"We would like to see Ukraine as a European country with high democratic values," he said, adding that his objectives include membership in the World Trade Organization and the European Union. "We would like to see Ukraine as a country that is a place for wealthy people. I think this is a good goal and we are moving in this direction."

The WAN Board meeting continues in Ukraine through Tuesday.

WAN, the global organisation for the newspaper industry, defends and promotes press freedom world-wide. It represents 18,000 newspapers; its membership includes 74 national newspaper associations, newspaper companies and individual newspaper executives in 102 countries, 11 news agencies and nine regional and world-wide press groups
Edited

2006-11-27T21:49:00.000+02:00

Zim Filmmaker Wins Award

Congrats SW Radio Africa!!

Report by UNFPA
Zimbabwean filmmaker Tawanda Gunda-Mupengo took home the $1,000 first prize in the continent’s largest Pan African Film Festival devoted to Gender Based Violence (GBV).

Several hundred people gathered at the launch to watch Gunda-Mupengo’s film, 'Spell My Name', the moving story of a young teacher who uncovers the sexual abuse of one of her students by the school’s headmaster. Eighty-four films from 18 African countries were submitted for inclusion in the festival, organized by UNFPA, the United Nations Population Fund, to call attention to gender based violence and break the silence surrounding the issue.
Meanwhile SW Radio Africa won an the Africa International Broadcasting Award last weekend.
According to the AIB, the award was for their brave reporting on Zimbabwe and providing an alternative voice.
Congrats Again.

2006-11-27T21:45:00.000+02:00

Latest Media Monitoring Report

(for week ending November 19)

THIS week the Zimbabwe Independent (17/11) exposed the authorities’ determination to stifle critical journalism in the country by flooding the media industry with toothless journalists. The paper revealed that government had ordered the country’s main journalist training institution, the School of Journalism and Media Studies at Harare Polytechnic, to recruit “only students” who are aged above 21 and have “undergone” government’s controversial National Youth Service training.
Reportedly, the polytechnic’s vice-principal, Runyararo Magadzire, had then instructed the media school to enrol students who are “able to prove their national consciousness by way of civic issues and other related issues of national interest”.

To make matters worse, the paper also revealed that the panel of selectors comprises a “senior lecturer from the department of National Strategic Studies and two external selectors, one from the Media and Information Commission (MIC) and the other one from a ‘reputable’ media house recommended by the MIC”. Although the paper did not get comment from government on why issues such as “national consciousness” and “national interest” – previously defined narrowly along ZANU PF lines – should be prerequisites for journalism enrolment, it quoted two commentators exposing the underlying intentions of the move.

While Bill Saidi viewed the development as an attempt to “instil a wrong type of patriotism in trainee journalists”, an unnamed journalism lecturer observed that government was “trying to militarise media schools” and “entice youths to join the National Service” because “age and national service have no correspondence with one’s performance as a journalist”. The lecturer also noted that the move would further erode the students’ academic freedom because most of the national service graduands have previously been “used as classroom spies who report to the principal’s office on the happenings at the college”.
The government media ignored this development, which further exposes the authorities’ resolve to completely corrupt the country’s media space, and by extension, free expression.

2. Economy and corruption
THE government media papered over the root causes of Zimbabwe’s economic ruin with simplistic stories projecting government as succeeding in turning around the fortunes of the economy. This was reflected in most of the 97 stories these media carried on the subject (ZBH [64] and official papers [33]). For example, 26 of the stories that government papers carried on the economic meltdown painted a rosy picture of the country’s economic outlook or just highlighted symptoms of economic decline in isolation of government’s poor management.
The official media ignored following up alleged corruption by senior ruling party officials at the ailing government owned steel-making giant, Ziscosteel (Zisco). They also failed to expose the authorities’ policy contradictions, which have sometimes resulted in the promulgation of retrogressive economic legislation. Only the private media appeared interested in these issues. In fact, the official media were guilty of diverting attention from the authorities’ reported involvement in graft, especially at Zisco, by presenting them as fighting tenaciously to eradicate the vice. The Herald (15/11), for example, simply quoted Anti-corruption Minister Paul Mangwana lambasting corrupt civil servants for contributing to the country’s economic decay without probing why government had not acted against them.

The next day the paper carried a cartoon passively reinforcing Mangwana’s statements by describing civil servants as “evil servants”. Radio Zimbabwe and ZTV (15/11,8pm) also illustrated this professional hypocrisy. Rather than test the authorities’ commitment to fighting corruption in higher places, the two merely claimed: “Zimbabweans have come out in full support of government efforts to fight corruption, which is undermining economic turnaround initiatives.”
Notably, the Ziscosteel sleaze was not remotely mentioned. As a result, the government media’s audiences remained oblivious to the authorities’ reported attempts to keep the report away from public view. Neither were they apprised on their sudden defence of the alleged pillaging, especially in light of their rhetorical promises to fight all forms of corruption through the much-publicised anti-corruption drive.

However, The Herald (15/11) unwittingly exposed the duplicity of this anti-corruption drive. It cited Anti-corruption Principal Director Sylvester Mawunganidze revealing that most ministries were refusing to cooperate with the anti-corruption commission while Deputy Chief Secretary of the President, Ray Ndhuluka, noted that there was a “fragmented anti-corruption policy that allows the continuance of the vice”.
Why government has not addressed such hindrances was not discussed. Instead, the official media simply resorted to overplaying the economic benefits of otherwise routine events such as trade fairs, including even the advent of time-honoured occurrences like the onset of the rainy season, as indicators of economic recovery.

Radio Zimbabwe and Spot FM (13/11,8pm), for example, publicised the Import Substitution and Value Addition Expo in Harare, which the authorities used as a manifestation of their efforts to stave off economic decline. While the stations, for example, reported the Industry and Trade Ministry boasting about how its “mission to conscientise (sic) industry on the benefits of value addition and import substitution is bearing fruit as evidenced by the number of deals clinched at the Expo”, they did not ask him to detail the deals or how much they were worth.
The next day, ZTV (14/11,8pm) devoted 11minutes of its one-hour bulletin (excluding sports) to report approvingly about the onset of the rains. The Herald (15/11) even allowed Mangwana to thank God for the rains, saying civil servants now “have no excuse for corruption”. It did not explain how the rains would be a solution to widespread corruption. Instead, the government Press carried seven superficial stories that glossed over the causes of the economic crisis.

For example, The Sunday Mail (19/11) criticised the decision by the Reserve Bank to cancel the seven-year Economic Stabilisation Bonds barely a month after introducing them, but avoided interpreting this as indicative of the confusion and policy contradictions by government. It merely quoted an unnamed analyst noting that the move would cause a “decline” in investor confidence. Earlier, Spot FM (18/11,8pm) found nothing controversial about government’s drafting of the “National Indigenisation and Empowerment Policy…aimed at compelling all foreign-owned companies across all economic spectrums to surrender 50% shareholding to local entrepreneurs…” As a result, no professional analysts were sought to debate the economic prudence of such a law, especially on investor confidence.
The government media’s reluctance to frankly diagnose the country’s economic ills was illustrated by their reliance on official voices. Although they gave significant space to business, ordinary people and alternative views, their comments were either drowned with official claims or used to endorse government measures.

The private media openly debated the subject in 36 reports on the matter, 27 of which appeared in private papers and nine in the private electronic media.
Twenty-three of the stories highlighted the country’s economic troubles while the remaining 13 exposed the fallacy of the authorities’ fight against corruption, which they depicted as endemic in government itself. For example, The Daily Mirror (13/11), the online news agency NewZim.com (15&17/11), The Financial Gazette (16/11) and the Zimbabwe Independent (17/11) all carried stories showing Cabinet ministers’ involvement in alleged corruption at ZUPCO and Zisco.

The Mirror and Gazette also revealed alleged harassment of police officers and court officials dealing with the corruption cases. For example, the Gazette disclosed that a police officer investigating the alleged involvement of Local Government Minister Ignatius Chombo in the ZUPCO scandal had been transferred from Harare to Manicaland as a way of “getting him out of the way.” Similarly, the Mirror reported that senior prosecutor William Gandanzara had resigned while a junior colleague and a magistrate were interrogated by the police for allegedly waiving the bail conditions for Deputy Information Minister Bright Matonga, also implicated in the ZUPCO corruption. It reported Gandanzara as saying he resigned because he was displeased with the manner in which the police handled the matter, which he claimed “was tantamount to not having confidence in the office of the area prosecutor”.
And despite recent official denials of top government officials’ involvement in the corruption at Zisco, the Independent continued to provide details linking them to the sleaze.

This week the paper named Vice-President Joice Mujuru as one of the beneficiaries of the pillaging. Reportedly, it was her determination to keep the plundering secret that resulted in Industry Minister Obert Mpofu retracting his claims that government officials had looted the government-owned enterprise. In addition, it noted that while Science and Technology Minister Olivia Muchena denied any involvement in the Zisco goings-on, evidence – which the paper published – showed otherwise.
The official media ignored these matters.
The private Press’ candidness was reflected by their sourcing pattern as captured.

3. Agriculture
THE government media carried 57 stories on agricultural issues during the week: ZBH (35) and government papers (22). However, none of them gave a holistic picture of the agricultural difficulties facing the country as they largely painted a picture of normalcy in the sector while censoring information showing otherwise. For example, 18 of the stories the official papers carried on agriculture glossed over the problems bedevilling the sector while only four highlighted them. It was against this background that the government media just ended up endorsing almost every government interventionist move in the sector without question.

For instance, there was no attempt to give an informed analysis on the fairness and logistics of government’s importation and distribution of agricultural equipment worth US$25m under the “Revolution in Agriculture Mechanisation” programme, and the arrival of part of the of the 200 000 tonnes of fertiliser from China. Instead, The Herald and Chronicle (16/11) seemed more interested in celebrating the fertiliser’s shipment on the basis that it signalled the first delivery of aid the Asian country had promised Africa during the Sino-Africa summit earlier this month. Moreover, the papers paraded the development as reflecting the success of government’s Look East policy. Consequently, there was no verification on the suitability of the fertiliser and whether it would satisfy national needs.
Besides, there was no attempt to reconcile the authorities’ attempts to sanitise the situation in the agricultural sector with their few reports on the projected low wheat yields, shortage of inputs and farming equipment. Spot FM (14/11,8pm), for example, just noted: “Prospects for a wheat bumper harvest could be dealt a blow as farmers battle to secure combine harvesters in an attempt to save their crops from the rains…” Otherwise, the broadcaster was awash with ministerial pronouncements - some of which did not even qualify as news - such as the one inviting “farmers wishing to join Operation Maguta/Inala…to approach the AREX offices for application forms” (Spot FM, 16/11,8am).

The government media’s voice sourcing pattern is shown in Fig 3 and 4. Although ZBH’s sourcing seemed diverse, the broadcaster’s coverage of the issues remained piecemeal.

Fig. 3 Voice Distribution on ZBH

Except for the five stories that appeared in the Mirror stable, which took the official media stance, the rest of the other 19 stories the private media carried (private electronic media [eight] and private papers [11]) continued to question government’s seriousness in reviving farming. For example, the Gazette did not find anything amusing about the government conducting “yet another land audit” on land utilisation and take-up, to be completed by the end of the month. It wondered whether the audit would make any difference as similar exercises – whose findings “have gathered dust in government offices” – have not been used to address the farming problems.
The paper and the Independent also criticized government’s chaotic planning, seen as the reason behind the country’s recent importation of low quality fertiliser from South Africa. Noted the Independent: “The fertilizer saga is an apt reference to the fact that agriculture will not recover through piecemeal (central bank) interventions and public posturing but by ensuring that there is a holistic plan that ensures that all support industries are functioning”. In fact, NewZim.com (15/11) reported that hunger was still stalking the country with aid agencies still “feeding hungry Zimbabweans after appeals from government”. Despite this, however, it revealed (16/11) that the WFP had decided to “scale back food distribution…to 1. 4 million Zimbabweans” due to donor fatigue, a development MDC officials Tendai Biti and Welshman Ncube said would have “tragic consequences”.

Although the private papers quoted more official voices, they tried to balance their comments with other sources outside government.
Edited