Mugabe's party ready to bury 'western NGO, the MDC'
FANUEL JONGWE | MUTARE, ZIMBABWE - Dec 18 2010 16:45
Zimbabwe President Robert Mugabe's party was on Saturday set to back his push for elections in the country early next year as supporters pledged to "bury forever" his "Western" backed political rivals.
Delegates from Mugabe's Zanu-PF movement were meeting behind closed doors on the last day of its annual conference in the eastern city of Mutare where the veteran president is due to address delegates at 7:00 pm (1700 GMT).
"Zanu-PF is on an unstoppable roll," said Simon Moyo, the party's national chairperson, ahead of the speech where Mugabe is expected to be re-endorsed as its candidate for national polls in 2011.
"I would like to urge this conference to build on that momentum as we go towards the next general election scheduled for next year."
Moyo also hit out at the Movement for Democratic Change (MDC), led by Prime Minister Morgan Tsvangirai, who for almost two years has shared power with long-time foe Mugabe after an inconclusive presidential election in 2008.
"We want to bury, once and for all, this Western project called the MDC," Moyo said. "We must bury forever this combined British and American non-governmental organisation. For that is what the MDC is," he added.
The coalition has been on the brink of collapse for months with Mugabe and Tsvangirai at loggerheads over how to handle the country's massive debt and food shortages, and internal haggling over who gets key jobs.
Power sharing must end
On Friday, Mugabe told more than 4 000 delegates attending the conference that the power-sharing agreement between Zanu-PF and the MDC was not working and it must end.
He also threatened to nationalise British and American companies operating in Zimbabwe if the international community failed to drop restrictions placed on him and his inner circle.
The Zimbabwe leader wants presidential and Parliamentary polls on the same day next year, but the MDC has said key reforms must be put in place first to ensure a free and fair vote.
Rights groups say hundreds of political activists were killed during the last presidential election in 2008. The MDC has said fair elections are not possible until 2012 at the earliest and possibly as late as 2013.
However, Lovemore Madhuku, chairman of pro-democracy group the National Constitutional Assembly of Zimbabwe, told Agence France-Presse that the MDC's concerns would be ignored. "Zanu-PF will push for those elections no matter what," he said.
In March 2008, Tsvangirai won the presidential election defeating Mugabe, but he fell short of the required majority resulting in a run-off ballot months later which the MDC leader refused to take part in and Mugabe won unopposed.
Mugabe and Tsvangirai formed the compromise administration in February the following year. -- Sapa-AFP
Labels: 2011 ELECTIONS, MDC, ROBERT MUGABE, SIMON MOYO
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COMMENT - " government is still struggling in ensuring that the wealth of the country is distributed to benefit everyone equally " - to say they're 'struggling' implies that they are trying.
Zambia’s economy good on paper – EAZ
Saturday, December 18, 2010, 11:51
Economic Association of Zambia EAZ executive director, Alexander Chileshe says the country’s economic performance only looks good on paper and has no reflective effect on the lives of the poor Zambians.
Mr. Chileshe says the inequality gap in the nation’s economy has continued to widen with the relatively good economic performance Zambia has recorded over the last few years having no impact in people's lives.
He notes that government is still struggling in ensuring that the wealth of the country is distributed to benefit everyone equally.
He also observes that government’s control of the inflation rate and other factors of the economy has not yielded up to anything because the people on the ground are still living in abject poverty.
Second republican president Frederick Chiluba shopping at Pick N Pay suppermarket in Lusaka
Mr. Chileshe says while the economy looks fundamentally good, there is need to make some reviews to how government gets the nation%u2019s wealth distributed across the country.
He has also proposed that government begins o evaluate which sectors are performing well and which ones are not so that the right sectors beneficial to the people receive more support.
Labels: ALEXANDER CHILESHE, EAZ, GDP
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Where are Ugandans in lucrative oil deals?
By Chris Obore
Posted Saturday, December 18 2010 at 00:00
OILY BUSINESS: Nema officials inspect a Tullow Oil rig in Hoima. Even the most basic services in the oil mining business are being provided by foreigners. PHOTO BY CAESAR ABANGIRAH Ever since oil deposits were discovered in Uganda a mixed buzz of excitement and anxiety has captivated the country. The expected petrodollars have brought new hope for millions of locals who now dream of tapping fortunes from the oil wells. But as Chris Obore finds out, these might only be daydreams:
The wish of locally owned companies to cash in the fledgling oil industry could turn out to be fantasy after it emerged that lucrative deals are going to foreign owned firms.
A senior government minister, however, said the hand-out of lucrative contracts to foreign firms could have been loaded with corruption while Energy ministry permanent secretary, Kabagambe Kaliisa said “Ugandans were sleepy for a long time.”
And Tullow Oil says “we are right at the forefront of promoting local content.”
The National Oil and Gas policy requires that local firms are given priority in the provision of services to the oil and gas exploration exercise. However, our investigations reveal that some foreigners have formed a chain of firms that are ‘winning’ to provide even the most basic services that ideally can be handled by Ugandans.
These services include provision of parking yards, warehousing, catering and supply of equipment among others. These are being provided by three different firms, ironically owned by the same foreign directors. The firms are BMS Minerals Ltd, East African Cranes Ltd and Strategic Logistics all owned by Gerry Burley, John William Paul Sherwen, Mark John Morley and Peter James Bateman.
According to Mr Kabagambe, although the policy requires local content in the oil and gas service sector, it may be not be possible to get locals ready to offer the services.
“Ugandans didn’t know what was going on because they were sleepy for a long time,” he said.
Sector veteran
Mr Kabagambe is part of a handful of Ugandans who are veterans of the local oil sector. Asked whether locals couldnt provide parking yards, Mr Kabagambe said, “I know what I am saying because I have been in the oil sector for a long time. Those companies need time to develop,” he added.
However, sources familiar with the industry, said confidentially that the foreign owned-firms benefited from insider information provided to them by senior managers in Tullow, one of the companies exploring for oil in the country.
Tullow Country chairman Elly Karuhanga dismissed the claim: “The CEO and entire management of Tullow have been instructed to ensure that Uganda and Ghana become a case study for indigenisation and empowerment of local content so that local people get integrated into oil business.”
Mr Karuhanga also said the oil firm has been trying to involve many Ugandan companies “but there has been a lull in activities of Tullow because of unsigned agreements with government.”
He said some foreign firms got the deals because the government gave Tullow certain deadlines to meet or relinquish the oil blocks; therefore the firm had a dilemma to finish the job as fast as possible and also ensure that Ugandans get business.
Still, Mr Karuhanga acknowledges that there is an anomaly but that will be rectified in January when the company expects to meet both local and international firms to discuss business prospects.
Work with locals
“I am quite happy with what is going on and with what is afoot. But those companies will be urged to work with Ugandans; that is the policy Tullow will adopt.”
While Tullow reveals progress, our investigation found out that lack of transparency could foment unrealistic expectations thus inspire resentment.
Although under his docket, Energy minister Hillary Onek blames the anomaly on his bureaucrats. “Let Parliament put public servants in the dock because we need local participation,” he said, adding that the bureaucrats don’t want politicians to dig into what is happening.
“Why should contracts go to foreign firms when our civil servants are the ones who licence companies?” the minister asked, adding “slowly, we have to rectify [the situation].”
And in an email response to our queries on how they landed the lucrative contracts, Mr Gerry Burley, a director on various firms offering oil and gas services, said “tender contracts are awarded by the procurement departments and committees of the various Oil Exploration companies.”
He said that only the Energy ministry could explain the official policy regarding the hiring of local suppliers and service providers in the Ugandan oil industry.
“We are fully compliant, tax-paying Ugandan registered companies, and are proud to be contributing positively to the development of Uganda’s nascent oil industry,” he wrote.
Affirmative action
Tullow’s corporate affairs director Jimmy Kiberu said the firm would take affirmative action to promote local service companies, revealing that at least $2.8 million had been spent in training local capacity.
Affirmative action or not, Uganda needs to set specific legislation to operationalise the oil and gas policy which provide the framework of inclusion for locals.
“Before we move to the next stage, there should be legislation on employment and other services in the oil industry otherwise the policy will be abused,” said a key figure in the oil sector. Otherwise, some players such as oil-hungry countries like China – already on the sidelines of oil production in Uganda – could impose their own policies which require that 75 per cent of the workforce be Chinese.
Some oil deposits are also located in national parks especially the two premium ones like Queen Elizabeth and Murchison Falls.
The question therefore is whether the country will chose oil against nature even though observers worry such a choice is likely to swing in favour of oil.
Labels: FUEL, JIMMY KIBERU, OIL, TULLOW OIL, UGANDA
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Power sharing cannot continue: Mugabe
by AFP
17/12/2010 00:00:00
PRESIDENT Robert Mugabe told his party conference Friday that the country's messy power-sharing government “can't be allowed to continue.”
“We agreed to work together... as a compromise to enable us to sort things out, establish peace, political stability, now some are dragging their feet,” Mugabe told members of his Zanu-PF party.
“The GPA can't be allowed to continue,” he added, referring to the Global Political Agreement with the ex-opposition Movement for Democratic Change (MDC) party of his prime minister and arch-foe Morgan Tsvangirai.
Mugabe and Tsvangirai formed a power-sharing administration six months after a chaotic presidential vote in 2008 but they are now in the throes of a vicious battle over when the next national elections should take place.
Mugabe said the deal with the MDC had failed.
“What it has done is to reveal and expose to us what we did not know, now we know this creature the MDC, has no policy, no ideology, no philosophy except change, change,” he told delegates at the official opening of the conference.
More than 4 000 Zanu-PF delegates assembled in the eastern city of Mutare where they are expected to rubber stamp Mugabe's push for polls in the first half of 2011.
“Every delegate is ready for the battle of elections next year,” Mike Madiro, a Zanu-PF provincial chairman, earlier told AFP.
In March 2008, Tsvangirai won the presidential election against Mugabe but fell short of the required majority, resulting in a run-off ballot which the MDC leader refused to take part in, allowing Mugabe to triumph unopposed.
On Thursday, Tsvangirai said only a presidential vote would address the issue of “illegitimacy” following the disputed run-off poll, but he refused to specify any date when elections should take place.
The MDC has previously said that credible polls are not possible until 2012 at the earliest.
Labels: GLOBAL POLITICAL AGREEMENT, MDC, MIKE MADIRO, NATIONAL UNITY GOVERNMENT, ROBERT MUGABE, ZANU-PF
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I’ve done my part: Mutambara
by Staff Reporter
17/12/2010 00:00:00
MDC-M leader, Professor Arthur Mutambara, has announced that he will step aside at the party’s congress next month to allow secretary general Welshman Ncube to take-over as party leader.
The party had been in a bit of a pickle as Ncube was one a number of key officials that had served out two terms and were, thus, ineligible, under the party’s current constitution, to stand again in those positions. Mutambara’s decision to step aside ends the prospect of a potentially divisive contest for the presidency at the party’s congress in January.
“I am not running for re-election at the next congress. I have done my part and I would like to give an opportunity to other colleagues to assume leadership positions. My time was productive and it’s time for another leader,” Mutambara told a local, privately-owned daily newspaper.
He said the national congress had caused divisions in his party but hoped his withdrawal from the race would lead to unity.
“By not participating, I hope there will be unity in the party. I’m not standing for any nomination in the provincial councils or leadership positions but I will remain a member of the party. I don’t have to be a leader to be politically involved,” Mutambara said.
His announcement came on the back of a decision by the MDC-M’s Harare province to join several other party structures that have already announced they would back Professor Ncube.
Mutambara was invited to lead the MDC-M in February 2006 following the acrimonious split of MDC in 2005.
He however, did not contest the 2008 presidential elections after the party decided to back Mavambo Kusile leader, Simba Makoni who came a distant third behind MDC-T leader Morgan Tsvangirai and Zanu PF leader Robert Mugabe.
As leader of the MDC-M he was appointed Deputy Prime Minister in the coalition government following a deal brokered by the regional SADC grouping after the presidential run-off poll between Mugabe and Tsvangirai proved inconclusive.
Mutambara said he would continue to work a good congress as well as provide leadership until are president was elected.
"We are trying to build a new culture in Africa where leaders come and go while institutions remain. We are also emphasising the notion that there is a difference between leadership and position of authority," he said.
Labels: ARTHUR MUTAMBARA, MDC-M, WELSHMAN NCUBE
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WikiLeaks cables rightly scathing about Tsvangirai
by Petina Gappah
17/12/2010 00:00:00
ZIMBABWE'S prime minister, Morgan Tsvangirai, can be forgiven for being an angry man. Not only has Robert Mugabe failed to implement the agreement that created Zimbabwe's unity government between Mugabe's Zanu PF and Tsvangirai's MDC, the cables unleashed on WikiLeaks in recent days have revealed just what one of his key allies thinks of the prime minister.
The country is abuzz with details of what America's former ambassador to Zimbabwe thinks of Tsvangirai. It is of course the view of one man, Christopher Dell, but to many, the US has spoken. As Thursday's Guardian editorial put it:
"The cables were written by Americans, to be read by Americans and they form the undigested raw material of American policy."
And what the US had to say about Tsvangirai is so raw as to be downright unflattering. Tsvangirai, according to Dell, is "a flawed figure, not readily open to advice, indecisive and with questionable judgment". He is, Dell wrote, "an indispensable element for opposition success … but possibly an albatross around their necks once in power. In short … Zimbabwe needs him, but should not rely on his executive abilities to lead the country's recovery."
The Guardian pointed out that many of the diplomats' cables are "are consistently well-informed, well-sourced and well-judged". Tsvangirai's spokesman issued a bellicose response: Dell's assessment of Tsvangirai, he said, was contrary to the views of the increasing number of Zimbabweans who have been supporting him since 1999.
But this is beside the point. The reality is that Tsvangirai has always been a protest choice, and not a real one. Given the choice between him and Mugabe, most voters would choose, and have chosen him. But this is not to say that he is by any means the best possible leader for Zimbabwe.
Dell's thinking chimes with what many in Tsvangirai's MDC and outside it have been whispering. There is no question at all that Tsvangirai is a brave man, a decent human being, and from all accounts, a likable one. But his actions as MDC leader have also revealed him to be all the things that Dell has said.
Tsvangirai encapsulates the dilemma of the revolution donated from abroad: for the west, he raises the question of what to do about a pro-democracy leader who is not all that he should be, but represents the best alternative to the regime it is fighting.
Dell compared him to Lech Walesa, but he is more like Hamid Karzai. Like the Afghan leader, he is a deeply flawed man whose success is nonetheless essential to the interests of the US and its allies, and who, flawed as he is, still offers a better alternative to the regime he is fighting.
But the strategy of uncritically supporting the lesser of two evils has been to the detriment of politics in Zimbabwe, and indeed, to its democratic development. Tsvangirai may be a lesser evil, but there is still much about him that causes discomfort. Supporting him has led to multiple contradictions and hypocrisies, both for the people of Zimbabwe and the MDC's western allies.
So while Mugabe is castigated for hanging on to power, and refusing to let democratic processes take place both within his party and the country,
[A criticism obviously not leveled against US ally, Egyptian president Hosny Mubarak, who is in his 80s, and has not lifted the state of emergency since he came to power after the assassination of President Sadat. Obviously, instituting democracy is not their foreign policy goal in Zimbabwe - securing the Zimbabwean people's diamond fields is. - MrK]
Tsvangirai, who intends to stay on as MDC president beyond the constitutional limits imposed by his party's constitution, is considered essential to democracy. In effect, undemocratic means are used to advance supposedly democratic outcomes. And in pushing and supporting a man who as patently flawed as Tsvangirai, they may effectively be creating a monster.
Dell also zoomed in on Tsvangirai's apparent aversion to ideas outside his small narrow circle. Rumours abounded that he wanted to sack Tendai Biti, the finance minister who has proved to be one of the leading lights in cabinet, and who, interestingly, was lauded by Dell as one of only two quality leaders in the MDC.
This, in the context of the elevation of the patently unqualified Theresa Makone to the high profile home affairs portfolio was a shocking development. A flamboyant businesswoman who started life as a beauty therapist, Makone and her equally wealthy husband are said to control party appointments in a way that many consider damaging to the party.
Dell's reflections are therefore an important trigger for a discussion of Tsvangirai and his style of leadership. The MDC has largely escaped scrutiny, as, for that matter, have other actors opposed to Mugabe.
The thinking behind this lack of scrutiny is that those opposed to Mugabe must be in the right. But Mugabe himself is the best example of a revolutionary motivated by idealism who soon found himself opposed to everything that he had stood for. Dell's cables are thus important to an examination of the MDC.
But considering the bellicose response to Dell from Tsvangirai and his party, this may ultimately prove to be a vain hope.
Petina Gappah is the award-winning author of An Elegy for Easterly and Zimbabwean lawyer. This article was originally published in the Guardian
Labels: CHRISTOPHER DELL, MORGAN TSVANGIRAI
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Diplomacy not doomsaying will unite parties
by Thokozani Mabhena
17/12/2010 00:00:00
THE kind of political communication that was displayed by Methuseli Moyo in his article “MDC-M put down your cross” does not only harm the reputation of the writer but is also corrosive to the image of the organisation that he is associated with.
In that article, Moyo, who is ZAPU’s director of communications and marketing, exposes himself and ZAPU to a lot of unkind attention and damaging conclusions that ZAPU might fail to recover from.
In fact, if ZAPU as a political party can have its seriousness and purposes deduced from what Moyo says and how he says it, then fair-minded people will be forgiven for concluding that it is not a revived ZAPU but a suspicious new political organisation with sinister agendas that is dressed in the name of ZAPU to dupe unsuspecting supporters.
To be fair to Moyo, I will give clear reasons why I believe, as most people will, that his article is more dangerous to ZAPU than to those organisations and individuals that he thinks he is attacking.
A few weeks ago, in a forceful article with the title “ZAPU does not owe Tsvangirai any favours”, he confronted one Sibusiso Dhlodlo and Nevanji Madanhire, editor of the Standard, for calling ZAPU a “small party” and perpetuating Tsvangirai’s misguided agenda of trying to bully other political parties into some alliance with MDC-T in next year’s elections. That is a good fight that Moyo fought and many people congratulated him for hitting the nail on the heard and putting MDC-T in their place.
The same Methuseli, armed with the same arrogance and big party mentality of Dhlodlo and Madanhire, tries to minimise the Arthur Mutambara-led MDC to a “small party” that must urgently join ZAPU or face “doom”. For good measure, Moyo bets “one of” his “bulls” that without joining ZAPU, MDC-M has no future.
Now, Moyo has to work overtime to distinguish himself from the Dhlodlos and Madanhire’s of our time and one hopes that such double standards and self- contradictions that bespeak massive confusion are not indicative of the state of affairs in ZAPU as an organisation.
Whoever told Moyo and his anonymous friend that the bad political advice that they tried to sell to MDC-M and failed is a strategy was wrong by a very wide margin. A strategy is normally a map of action, well researched, which answers the whats, hows and whens of action with a projection of results and or consequences of the action.
Advising MDC-M to rejoin MDC-T and disengage later, or to go regional, does not come near being a strategy by any stretch of the dictionary as we know it. It is simply bad political advice that was blind to the factors and reasons that caused the MDC split which included tribalism and the Americans funding the spilt.
These are factors that are well known to Methuseli as he mentions them in his challenge to Dhlodlo and Madanhire. For Methuseli to conveniently ignore these factors, then arm himself with the “I told you so attitude” by claiming that had MDC-M taken his advice they were going to win elections, tells us more about his own simplicity than the mistakes of MDC-M.
Methuseli accuses the leadership of MDC-M of failing to assume leadership and going to “hire Mutambara” from “Mashonaland” to lead the party. My God! For a whole journalist and director of communications like Moyo to try to reduce Mutambara’s political value in Zimbabwe to that of a politician for “hire” is neither fair nor funny.
What happened to political memory? Morgan Tsvangirai achieved his first recognition in oppositional politics in 1988 when he pledged solidarity with Auther Mutambara who had been arrested after he Generalled University of Zimbabwe students in a direct confrontation with Mugabe. It was the biggest mass action ever in Zimbabwe where students and ZCTU opposed the one party state agenda and corruption in government.
Mutambara’s political and other CVs do not need research, only a modicum of memory. To try and compress this formidable politician to a hireling is unforgivable street wisdom, the kind of thinking that we have learnt to associate with the MDC-T. Mutambara is a formidable politician with solid credentials besides coming from Mashonaland, and Moyo cannot be easily forgiven for purveying such pedestrian analysis.
When The Chronicle “generously” covers MDC-M and not Dumiso Dabengwa, Moyo cries foul. It is a Zanu PF strategy to black-out ZAPU. How Methuseli comes to blame MDC-M for a clear strategy by Zanu PF is strange.
He goes on to lampoon MDC-M and doubts “if they still have any” members left and that they can “even join Zanu PF” if they want to survive. This kind of indecorous communication and insulting behavior is not expected from a party like ZAPU that is looking for supporters and allies against MDC-T and Zanu PF.
Methuseli might claim that he is speaking in his personal capacity, but as a person who is aware of ZAPU’s internal communication policy, his words inevitably indicate what ZAPU is about. As a leader within ZAPU, his manner and attitude is likely to spread with bacterial speed amongst the party membership, reducing the party to an unfortunate gathering of political snobs who are chasing people away from the party than proselytize.
If Moyo’s purpose in communicating thus is to encourage unity or alliance talks between ZAPU and MDC, which is a noble purpose, then he is going about it the wrong way. If his agenda, like Dhlodlo and Madanhire, is to bully and intimidate MDC-M into joining ZAPU, then he is ill- advised because in politics it is diplomacy and not doom-saying that unites political parties.
Moyo’s apocalyptic threats of “doomsday” for MDC-M and the crucificial “cross” that he is talking about is neither diplomatic language nor is it good for ZAPU’s own image management needs.
Moyo, like many other serious people, knows it in letter and verse that a unity or alliance between ZAPU and MDC-M might close out MDC-T and Zanu PF from Matabeleland and the Midlands, which will be a political good harvest for both parties and a good beginning for the political and economic recovery of the region. It is, therefore, unfair and very sad for a senior ZAPU official like Moyo to approach that subject with such carelessness and reckless abandon.
To ridicule, minimise and prophesy “doom” against MDC-M is disrespect of a strong potential ally for ZAPU, and an ally which already has some sitting members of parliament and a wealth of experience on its side. It cannot be over emphasised that ZAPU and MDC-M are political parties that need each other, which makes respect and diplomacy between them more important.
Moyo should carry himself, intone his communication and order his attitude in a sober and sound manner that befits the name of ZAPU and exudes the aura of the late Joshua Nkomo and his successor Dumiso Dabengwa -- serious leaders with a historical liberatory agenda. If Methuseli is impatient with the conduct of some officials in MDC-M, he can as well take the war to the boardroom, not in the media, which has the unintended consequences of arming the opposition with free fuel for propaganda.
Most of us who are persuaded to the idea of a possible alliance or even unity between ZAPU and MDC-M are aware than both political parties must prepare for a propaganda and information war that Zanu PF and MDC-T will unleash towards the coming elections.
Soon enough, Methuseli and others should be bracing for fierce battles of ideas and opinions. There is definitely going to be blood. One hopes that both ZAPU and MDC-M will not be found unprepared. The season of sleepless nights and burning of candles responding to propaganda and challenging lies from Zanu PF and MDC-T will soon be upon you Methuseli, extend the hand of diplomacy to your potential allies and not burn bridges before the rainy season!
Thokozani Mabhena is a member of MAGEM in the United Kingdom. He writes in his personal capacity. Email: thokozanimabhena@rocketmail.com
Labels: MDC-M, METHUSELI MOYO, ZAPU
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COMMENT - Fantastic. The US 'regime change effort' is paying a heavy price for basing it's foreign policy information on a crook like Andrew Cranswick. He could be Zimbabwe's Curveball.
CIO boss, Gono demand millions over WikiLeaks
by Staff Reporter
17/12/2010 00:00:00
CENTRAL Intelligence Organisation boss, Happyton Bonyongwa and the central bank governor, Gideon Gono, have
filed multi-million dollar suits for damages following claims they were at the centre of diamond smuggling at the country.Bonyonga is demanding US$10 million from Africa Consolidated Resources (ACR) chief executive, Andrew Cranswick while Gono has slapped The Standard newspaper with a US$12.5 million dollar damages claim.
The claims come in the wake of another US$15 million damages suit filed against The Standard by President Robert Mugabe’s wife, Grace.
The three were fingered in classified communications from the US embassy in Harare which have been made public by the whistle-blowing website, WikiLeaks.
In one of the cables the US Ambassador to Zimbabwe wrote: “RBZ Governor Gideon Gono, Grace Mugabe, wife of President Robert Mugabe, Vice President Joice Mujuru, (the then) Mines and Mining Development Minister Amos Midzi, General Constantine Chiwenga and wife Jocelyn, CIO director Happyton Bonyongwe, Manicaland Governor Chris Mushohwe and several white Zimbabweans including Ken Sharpe, Greg Scott and Hendrick O’Neill, are involved in the Marange diamond trade".
The envoy said he had been informed of the officials' involvement in illicit diamond deals by Cranswick.
Gono and Grace Mugabe are suing The Standard for stories published in the newspaper which were based on the leaks.
Gono’s lawyer, George Chikumbirike, who is also representing Grace Mugabe, said The Standard’s reports were “false and highly defamatory of the Governor”.
However, Bonyongwa is demanding restitution directly from Cranswick, who was said to be the source of the allegations.
Joseph Mafusire of Harare law firm Scanlen and Holderness said claims his client was onvolved in diamond smuggling were false adding the reports had damaged Bonyongwa’s fame and reputation.
"Our client was never involved in any trade in diamonds from Chiadzwa or anywhere else. He has not been involved in any mineral of whatever kind in Zimbabwe or elsewhere," Mafusire said in his letter of demand.
Mafusire demanded that Cranswick pay his client US$10 million in damages within five days failing which summons would be issued out at the High Court.
Cranswick was not immediately available for comment but when the cables were released the ACR boss claimed he had not given any of the names published by WikiLeaks adding that he had “never met any US officials”.
Labels: ANDREW CRANSWICK, CIO, GIDEON GONO, HAPPYTON BONYONGWA, WIKILEAKS
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COMMENT - Fantastic. The US is paying a heavy price for basing it's foreign policy information on a crook like Andrew Cranswick. He could be Zimbabwe's Curveball.
CIO boss, Gono demand millions over WikiLeaks
by Staff Reporter
17/12/2010 00:00:00
CENTRAL Intelligence Organisation boss, Happyton Bonyongwa and the central bank governor, Gideon Gono, have
filed multi-million dollar suits for damages following claims they were at the centre of diamond smuggling at the country.Bonyonga is demanding US$10 million from Africa Consolidated Resources (ACR) chief executive, Andrew Cranswick while Gono has slapped The Standard newspaper with a US$12.5 million dollar damages claim.
The claims come in the wake of another US$15 million damages suit filed against The Standard by President Robert Mugabe’s wife, Grace.
The three were fingered in classified communications from the US embassy in Harare which have been made public by the whistle-blowing website, WikiLeaks.
In one of the cables the US Ambassador to Zimbabwe wrote: “RBZ Governor Gideon Gono, Grace Mugabe, wife of President Robert Mugabe, Vice President Joice Mujuru, (the then) Mines and Mining Development Minister Amos Midzi, General Constantine Chiwenga and wife Jocelyn, CIO director Happyton Bonyongwe, Manicaland Governor Chris Mushohwe and several white Zimbabweans including Ken Sharpe, Greg Scott and Hendrick O’Neill, are involved in the Marange diamond trade".
The envoy said he had been informed of the officials' involvement in illicit diamond deals by Cranswick.
Gono and Grace Mugabe are suing The Standard for stories published in the newspaper which were based on the leaks.
Gono’s lawyer, George Chikumbirike, who is also representing Grace Mugabe, said The Standard’s reports were “false and highly defamatory of the Governor”.
However, Bonyongwa is demanding restitution directly from Cranswick, who was said to be the source of the allegations.
Joseph Mafusire of Harare law firm Scanlen and Holderness said claims his client was onvolved in diamond smuggling were false adding the reports had damaged Bonyongwa’s fame and reputation.
"Our client was never involved in any trade in diamonds from Chiadzwa or anywhere else. He has not been involved in any mineral of whatever kind in Zimbabwe or elsewhere," Mafusire said in his letter of demand.
Mafusire demanded that Cranswick pay his client US$10 million in damages within five days failing which summons would be issued out at the High Court.
Cranswick was not immediately available for comment but when the cables were released the ACR boss claimed he had not given any of the names published by WikiLeaks adding that he had “never met any US officials”.
Labels: ANDREW CRANSWICK, CIO, GIDEON GONO, HAPPYTON BONYONGWA, WIKILEAKS
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Sanctions: Zim to reciprocate
Herald Reporters
ZIMBABWE has been too soft on its enemies and will henceforth adopt a tougher stance that will see it reciprocating measures such as sanctions with its own policies. Government will also be tas-ked to come up with laws that make it treasonous for a person to support sanctions against the country in any way.
President Mugabe said this in his opening address to delegates to the 11th Zanu-PF Annu-al National People’s Conference that opened in Mutare yesterday.
The Zanu-PF President and First Secretary said: "We have been too good to malicious people, to countries that seek to destroy us. Why should we have 400 British companies operating freely here, with Britain benefiting?
"Why should we continue to have companies and organisations that are supported by America and Britain without hitting them back?
"The time has come for us to revenge. And one way of (doing this) is for us to use the Indi-genisation and Economic Empo-werment Act.
"That Act gives us authority to take over the companies. We can begin with 51 percent but in some cases we must read the riot act and say this is only 51 percent but if you do not lift the sanctions then we will take 100 percent.
"And that includes, mind you, companies that are mining gold, other minerals, platinum etcetera and some of them have been here for years — even before I was born.
"We cannot allow them to continue fooling us.
"I will say to our (conference) organisers that as you look at this area, you come up with a resolution on an anti-sanctions programme."
President Mugabe urged the conference to go further and look at the possibilities of coming up with legalistic mechanisms to punish citizens, parties and organisations that advocate or support sanctions on Zimba-bwe.
"It should be treasonous to do so; treasonous to call for sanctions on the people and anyone doing so is inviting punishment . . . we want to have laws to deal with this."
MDC-T is on record calling for sanctions on Zimbabwe and at one stage its leader, Mr Morgan Tsvangirai called on South Africa to cut transport and energy ties with Zimbabwe.
Despite the Global Political Agreement binding Mr Tsvangirai to advocate an end to the illegal sanctions that his party invited on Zimbabwe, he has not done so and yet the inclusive Government is nearly two-years-old and will soon be dissolved to pave way for elections.
The Head of State and Gover-nment and Commander-in-Chief of the Zimbabwe Defence Forces yesterday said Zimba-bwe would not allow NGOs the same free reign they enjoyed in previous years during which they acted as political agents and campaigned against Zanu-PF.
President Mugabe also said his Government would boot out any ambassador who meddled in Zimbabwe’s internal political affairs.
He said Zimbabwe had taken enough blows from its enemies
and the Christian tenet of "turning the other cheek" had been abused long enough.
"I do not have three cheeks. I turned the other cheek already and now I fight. Those who have a third cheek can turn it," he said.
President Mugabe said the inclusive Government had given the nation an opportunity to see what the MDCs stood for.
"Now you know that this creature called MDC has no policy at all, it has no ideology at all, it has no philosophy at all – except (to say) ‘chinja’."
He slammed party divisions that had contributed to Zanu-PF’s poor showing in Manicaland in the 2008 harmonised elections and vowed to root out the scourge of imposing candidates.
However, he said that was not sufficient excuse for Zanu-PF winning just six of the 26 Parliamentary seats in the province and called for introspection, re-dedication to duty and respect for the constitution for the party’s performance to improve.
President Mugabe recalled that it was at the 1997 Annual People’s Conference in the same city that the burning issue of land came to the fore and exploded into a full revolution soon afterwards.
At that conference, President Mugabe asked the then Minister of Agriculture Cde Kumbirai Kangai to read British Overseas Development Minister Claire Short’s letter renouncing the United Kingdom’s obligation to fund land reforms as agreed at Lancaster House in 1979.
Three years later war veterans and land-hungry individuals proceeded to occupy farms held by whites, prompting Government to embark on the Fast-Track Land Reform Programme.
"Generally, the land reform programme has gone well. We are aware that there are some things that have not gone well and we are correcting that…
"Some of those who got offer letters have been contracting the utilisation of that land, in some cases to the same settler farmer who used to occupy the land and to other white farmers.
"Zvino wapihwa land, nyangwe iri 50 hectares, unotsvaga murungu kuti akushandire? Ipo ndipo patinotora mapfumo…ChiMDC ichocho chekuramba uchidzokera kuvarungu."
President Mugabe said Zimbabweans should believe in themselves and their own capabilities.
He said God had blessed Zimbabwe with many precious minerals – some of which were only being discovered now that the country was in black hands – and these should be fully harnessed to improve people’s standards of living.
Labels: NATIONALISATION, ROBERT MUGABE, SANCTIONS, ZDERA
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Zanu-PF to emerge stronger: Khaya Moyo
By Sydney Kawadza
Zanu-PF will emerge from the 11th National People’s Conference stronger and ready to bury the Western regime change project, party national chairman Cde Simon Khaya Moyo has said.
Cde Khaya Moyo castigated the MDC formations for their lack of ideology and siding with foreign interests to undermine Zimbabwe’s development. He was addressing the opening session of Zanu-PF’s 11th Annual People’s Conference at Marymount Teachers College yesterday morning.
Cde Khaya Moyo described the venue as significant because Manicaland sent many sons and daughters of the soil across the border into Mozambique to join the liberation struggle.
"The choice for Mutare, which is on the border with Mozambique, to host the conference is a powerful reminder of the main objective of our liberation struggle."
Cde Khaya Moyo said the outcome of the constitutional outreach programme showed that Zanu-PF was geared for elections.
"Zanu-PF is on an unstoppable roll and nothing can stop it. It is indeed an unstoppable machine. We have a mission to accomplish. I would like to urge this conference to build on that momentum as we go towards the next general election scheduled for next year.
"We want to bury, once and for all, this Western project called the MDC. We must bury forever this combined British and American non-governmental organisation. For that is what the MDC is."
Cde Khaya Moyo, however, warned that Zanu-PF should remain united to achieve this end. "We should stop the imposition of candidates. There should never be any imposition of candidates and people should be represented by the people who have voted for them. "However, the prospective candidates must also meet the minimum requirements to represent the party."
Cde Khaya Moyo urged the party leadership to remain accountable to the people they represent.
"We must always remember that Government is the product of the party. So the party must lead Government projects…"
In his welcome address Zanu-PF provincial chairman for Manicaland, Cde Mike Madiro, urged Zanu-PF to impose its own sanctions on the West.
"The West has imposed sanctions on Zimbabwe. We need to reciprocate to their sanctions and bar them from coming to Zimbabwe.
"We should also stop them from benefiting from any of our resources," he said. Cde Madiro said Manicaland had learnt from its bad showing in the 2008 elections and promised President Mugabe that next year the province would deliver a resounding victory.
Manicaland Governor and Resident Minister Chris Mushohwe said the province was prepared to take part and benefit from indigenisation and economic empowerment programmes.
He lamented the wanton destruction of forests that are the main industry in the province and called for Government to ensure Manicaland benefits fully from its diamond deposits.
Labels: SIMON KHAYA MOYO, ZANU-PF
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‘National cake will be shared equally’
EVER since Government launched the consolidated indigenisation drive, making it mandatory for foreign investment worth more than US$5000 000 to cede 51 percent to indigenous people, detractors of the programme have called it chaotic and lacking vision. Industry and International Trade Minister Welshman Ncube recently said the programme had been shelved due to what he called teething problems. FEATURES EDITOR ISDORE GUVAMOMBE (IG) talks to National Indigenisation and Economic Empowerment Fund chairman Mr David Chapfika (DC) about this and other issues involving indigenisation.
IG: It is almost a year since you were appointed chairman of the National Indigenisation and Economic Empowerment Fund. Industry and International Trade Minister Welshman Ncube was quoted in the media recently as saying the indigenisation process had been shelved. Is that true?
DC: No, no, no! I respect him as a Cabinet minister but I would also want to believe he was misquoted and I hope he was misquoted. I don’t expect Ncube to say that because as Cabinet minister, that decision was passed with his support and I am reliably informed that the decision to indigenise was unanimous. Cabinet was unanimous. I am very much aware that by saying that Ncube would be opposing himself and the people of Zimbabwe. Honestly, my first reaction when I read the story was that he was misquoted because he is aware that there is no going back on that programme. If you want to be an enemy of the people of Zimbabwe, then oppose indigenisation. So I still hope he did not say it.
IG: There are also others saying the process has been chaotic . . .
DC: No, no, no! They don’t know what they are talking about. You see, anything that is good is bound to attract criticism. There are some people who were born greedy, people who are greedy and don’t want to see others come in to share the national cake. When the whites took over everything in Rhodesia they did it to enrich themselves and to dehumanise the blacks. So what do you expect from them? We were more of servants as they wanted us to be workers only. Only a few blacks were assimilated on patronage and not on competence. We were prejudiced for almost a century. So, any reasonable Zimbabwean would never oppose the indigenisation programme. We don’t mind people coming up with valuable criticism and ideas.
IG: Let us move to funding. How much is the indigenization supported by the fiscus?
DC: Well, we were only allocated US$5 million in the 2011 Budget announced by Minister Tendai Biti and obviously that is not adequate for our day-to-day operational costs.
IG: What about funding for the real projects?
DC: There was nothing and there is nothing we can do to raise funds at the moment because there is no legal support in terms of statutory instruments. We cannot issue bonds at the moment and we cannot collect levy. I am sure by February the Government will have issued the enabling statutory instruments to enable us to collect levy and to borrow money through the prescribed asset route. It is only through that, that we will only be able to fund our operations.
IG: Have you not received any funding from Government ever since you started?
DC: We received US$1 million from Government and some banks have been sympathetic and providing us with bridging finance. We remained thin, throughout the year. We needed cars, offices and furniture. We needed to recruit staff. That means we needed capital.
IG: There are black farmers who got land under the land reform or under earlier resettlement schemes or those who were spared from the land reform who are now leasing out the land. What is your position?
DC: It is a serious problem that falls under the Minister of Lands but it is clear that these people do not deserve the land, in the first place. They are breaking the law. They are reversing the gains of the struggle and the struggle was centred on regaining the land, on regaining the control of the economy of this country and on regaining our dignity as black people. I am sure the minister will deal with that.
IG: In terms of real work, what have you done to justify your mandate?
DC: You remember that January will be our first anniversary. We are implementing broad-based economic indigenisation. We have consulted everyone who matters, I mean all stakeholders as we have no monopoly over ideas. We have covered a lot of ground.
IG: What about real work?
DC: Well, we have made an organogram and recruited and filled all positions. We are going to be dealing with all sectors of the economy so we have general managers for the five key departments and we have recruited the IT, public relations and human resources managers, as well. We are now ready to roll. So as soon as those statutory instruments are gazetted we start serious work. Those we have hired need offices, furniture, cars and salaries. That means we urgently expect money.
IG: Can you explain how you are going to make sure that the same people who benefited from previous black empowerment programmes do not benefit at the expense of ordinary or other people?
DC: These are public funds and we cannot allow people to exploit others. Every Zimbabwean, regardless of political affiliation, is entitled to benefit. We will have a data base that will capture every beneficiary. This is why we have recruited people in IT and we will tell people that they have already had their share. This does not mean that we are closing our people who benefited before but we are saying we are going to share fairly, the national cake.
isadore.guvamombe@zimpapers.co.zw
Labels: DAVID CHAPFIKA, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), INTERVIEW, ISDORE GUVAMOMBE
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Zim power-sharing can't continue, says Mugabe
MUTARE, ZIMBABWE Dec 17 2010 15:24
Zimbabwe President Robert Mugabe told his party conference on Friday that the country's uneasy power-sharing government "can't be allowed to continue". "We agreed to work together ... as a compromise to enable us to sort things out, establish peace, political stability, now some are dragging their feet," Mugabe told members of his Zanu-PF party.
"The GPA can't be allowed to continue," he added, referring to the Global Political Agreement with the ex-opposition Movement for Democratic Change (MDC) party of his Prime Minister and arch-foe Morgan Tsvangirai.
Mugabe and Tsvangirai formed a power-sharing administration six months after a chaotic presidential vote in 2008 but they are now in the throes of a vicious battle over when the next national elections should take place.
Mugabe said the deal with the MDC had failed.
"What it has done is to reveal and expose to us what we did not know; now we know this creature, the MDC, has no policy, no ideology, no philosophy except change, change," he told delegates at the official opening of the conference.
Disputed run-off poll
More than 4 000 Zanu-PF delegates assembled in the eastern city of Mutare, where they are expected to rubber-stamp Mugabe's push for polls in the first half of 2011.
"Every delegate is ready for the battle of elections next year," Mike Madiro, a Zanu-PF provincial chairperson, earlier told Agence France-Presse.
In March 2008, Tsvangirai won the presidential election against Mugabe but fell short of the required majority, resulting in a run-off ballot that the MDC leader refused to take part in citing violence against MDC supporters, allowing Mugabe to triumph unopposed.
On Thursday, Tsvangirai said only a presidential vote would address the issue of "illegitimacy" following the disputed run-off poll, but he refused to specify any date when elections should take place.
The MDC has previously said that credible polls are not possible until 2012 at the earliest.
Nationalisation
Meanwhile, Mugabe told the conference that British and US companies in Zimbabwe would be nationalised if sanctions against the country were not dropped.
"Why should we continue to have 400 British companies operating here freely?" Mugabe said.
"Why should we continue having companies and organisations that are supported by Britain and America without hitting back? Time has come for us to revenge," he said, referring to laws that allow him to take the companies over.
"We can read the riot act and say this is 51% we are taking, and if the sanctions persist we are taking over 100%." -- AFP
Labels: GLOBAL POLITICAL AGREEMENT, NATIONALISATION, SANCTIONS, ZDERA
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Zanu-PF conference roars into life today
Thursday, 16 December 2010 21:49
THE 11th Zanu-PF Annual National People’s Conference roars into life today with the party’s President and First Secretary, Cde Mugabe, expected to officially open proceedings with a keynote address to delegates. Hordes of delegates began arriving here yesterday for the crucial meeting which is expected to chart the party’s strategies for next year’s elections.
This year’s conference is like a throwback to the third edition that was held here in 1997 in the wake of revelations by the Labour government of former British premier Tony Blair, whose secretary for international development,
Claire Short, wrote a letter trying to absolve the British of their colonial obligations to fund land reforms in Zimbabwe.
This year’s conference comes in the midst of equally shocking revelations from the whistleblowing website, WikiLeaks, about how Zanu-PF’s partners in Government, the two MDC formations, have been colluding with western powers in a bid to undo the gains of independence.
To this end, President Mugabe, in his capacity as Head of State and Government and Commander-in-Chief of the Zimbabwe Defence Forces, has already said he is not prepared to continue with the Global Political Agreement, which brings Zanu-PF and the two MDC formations together.
The President recently said he would not extend the inclusive Government’s lifespan for more than six months beyo-nd its agreed expiry date in February next year.
The 11th Annual People’s Conference was preceded by Zanu-PF Politburo and Central Committee meetings in Harare on Tuesday.
A senior party official yesterday said, "I cannot divulge the full agenda of the meetings that will be held, but in essence we are looking at how we will go about regaining the ground we lost in the 2008 elections. Key policy issues to be discussed are indigenisation, economic empowerment, the state of the party and next year’s polls.
"Needless to say, we are geared to resoundingly win the elections. Our leader has publicly stated that elections will be held next year and we are going to enter them an united and rejuvenated party because of this conference."
The conference theme is "Total control of our resources through indigenisation and empowerment".
Zanu-PF’s last Annual People’s Conference was in 2008 in Goromonzi and the party held its scheduled congress in Harare last year.
The congress is held after every five years. A business expo is running concurrently with the conference and yesterday exhibitors were setting up their stands.
Several leading companies will be showcasing their goods and services. The chair of the party’s national fund-raising committee, Cde Noah Mangondo said the expo would be held with all future conferences.
He said, "We have done all the ground work and we are expecting more exhibitors to come and take part by the time the conference starts.
"We want to give this conference a new profile and expa-nd the business expo so that it’s held annually.
"The exhibition gives businesspeople an opportunity to network with their leaders while they showcase their products and services."-The Herald
Labels: 2011 ELECTIONS (ZIMBABWE), GLOBAL POLITICAL AGREEMENT, ROBERT MUGABE, WIKILEAKS, ZANU-PF
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Zim blasts “jealous howling” over Marange
by Gilbert Nyambabvu
17/12/2010 00:00:00
ZIMBABWE’S permanent representative to the United Nations on Thursday blasted what he described as “the howling of the jealous” over Marange diamonds and pooh-poohed claims that only the political elite were benefiting from the gems.
Chitsaka Chipaziwa was reacting to criticism from the US and Canadian representatives during debate on a UN resolution backing the Kimberly Process (KP), an industry watchdog created to prevent trade in so-called “blood diamonds”. The KP maintains a ban on trade in diamonds extracted from Marange district in eastern Zimbabwe over claims the country is still to satisfy compliance issues.
During Thursday’s General Assembly debate, Canada’s UN representative Gilles Rivard expressed concern over what he described as Zimbabwe’s “piecemeal” implementation of the joint KP work-plan agreed to at a plenary held in 2009 plenary.
He also slammed Zimbabwe’s “lack of respect for civil society observers” adding they must be allowed to work without fear of reprisal.
Gregory Nickels of the US said his country had serious concerns about Zimbabwe’s lack of progress in “establishing minimum requirements in the Marange area, the violence around that area and the Government’s willingness to cooperate with the Kimberley Process”.
But Chipaziwa said he was “shocked and dismayed” by the allegations.
He countered that Western criticism of Zimbabwe on Marange was inspired by anger over their failure to gain control of the rich diamond discovery.
Chipaziwa also dismissed allegations of rights abuses in the district.
He said the Marange gems were not the only diamond fields in the country but the area was being singled out because “black Zimbabweans controlled (it)”.
“Indeed, those who point fingers at Zimbabwe have much to run away from. We in Zimbabwe will address such matters without resorting to vengeance,” he said.
“Latter day colonialists must wake up; the beautiful train laden with glorious stones is leaving without you. Choo, choo, choo.”
Chipaziwa also angrily dismissed allegations of diamond smuggling in Marange.
He claimed those complaining about “alleged smuggling were, actually, pitching tents in Zimbabwe and then chartering lavishly appointed jets and flying off to sell those very diamonds in other countries”.
The ambassador also rejected claims that the Marange diamonds were not being used for the benefit of ordinary Zimbabweans.
“Who are you to make such calls? Our diamonds are indeed for our own people,” he said.
The Marange alluvial fields are said to be among the richest in the world with government officials claiming they could earn the country up to US$2 billion a year.
However the gems continue to be dogged by controversy over allegations of rights abuses.
The Zimbabwe government rejects the claims and has vowed to defy a KP ban on trading in the stones.
Labels: CHITSAKA CHIPAZIWA, KIMBERLEY PROCESS, MARANGE DIAMOND FIELDS, UN
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COMMENT - " Rupiah doesn’t know that the exercise of power must be the constant practice of self-limitation and modesty " - and he shouldn't. This is why the 'good fellow hypothesis' doesn't work, and why the only way forward is to have a proper separation of the powers of state, spelled out in the highest law in the land, the Zambian Constitution. People who spend most of their lives getting to the top don't voluntarily put limits on themselves. Only the courts and the law can do that.
Reckless bravado
By The Post
Wed 15 Dec. 2010, 04:00 CAT
The government and its central bank, the Bank of Zambia, have caused the run that Finance Bank is today experiencing. Whatever the problems at Finance Bank were there were better ways of dealing with that bank than what they have done. What they have done amounts to an assassination of the bank.
Today, Finance Bank is seriously bleeding and may die. Why? In the face of many alternatives
Rupiah Banda’s vindictive government chose to use a nuclear bomb to get rid of one individual, when one shot from a pellet gun could have done the job.
It is clear that the decision making process that has brought Finance Bank where it is was driven by emotion and strong feelings of hatred for whatever reasons. We say this because it does not make sense for someone to bomb the whole country just to destroy one person who one has problems with. But this is what they have done. There is no doubt that Rupiah has problems with Rajan Mahtani and in the quest to destroy him he has gone for the whole bank.
Yes, Rajan is the major shareholder and founder of this bank but today this bank is far bigger than him. And Finance Bank, strictly speaking, does not belong to Rajan – it belongs to all those who use it, to all those who earn a living from it, to all those who have deposited their money in it, to all those who work for it. Rajan does not own Finance Bank, he only holds shares in it.
And because of this the effects of the destruction of this bank will go far beyond Rajan. And this is what those who decided to use such excessive force to settle personal differences should have thought about before deploying the means that they chose.
Today, our people have the option of withdrawing all their money from Finance Bank and they are doing so amass – causing a run on the bank. But this is not the end of the story. The story does not begin and end with their deposits being withdrawn. They are so many things that will arise from this reckless decision and action that will follow our people for some time. And it doesn’t matter whether one banked with Finance Bank or not.
Already close to half a trillion of taxpayers money has to be deployed to meet the consequences of this reckless adventure. We say this because it is not possible for Finance Bank, which they have nationalised because of alleged liquidity problems, to be able to meet such unprecedented gigantic withdrawals. The money is coming from public coffers.
And even public coffers cannot meet such a huge requirement of cash without unhealthy fiscal policy compromises. Many social services will have be sacrificed. Soon there will be cholera everywhere because the government has no money to provide people with clean water and decent sanitation. There will be potholes everywhere which the government will fail to mend. The list of what the government will fail to do as a result of this reckless adventure is endless. And to this endless list we may have to add inflation.
We have no doubt that at some stage Rupiah’s government will resort to printing cash to finance their hatred for Rajan. The result of this is very simple to discern – inflation will rise and our poor people will be saddled with a subtle tax to finance Rupiah’s ego. We say this because the whole move against Finance Bank is being pursued to satisfy Rupiah’s desire to finish Rajan. But at what cost? Even in a war one has to measure the cost of trying to seek a total annihilation of an enemy. The cost may be too high to oneself and to the enemy to justify finishing him off. For this reason, when one has obtained a strategic advantage the war stops to save oneself unjustifiable costs.
If banking regulation was what was the issue in the Finance Bank debacle we do not see how the central bank could have chosen the methods that they have chosen. In many ways, their behaviour contains elements of reckless bravado, triumphantalism which does not seem to be benefiting them. We say this because with one single reckless act the central bank had totally erased the appearance of professionalism and competent handling of the financial sector which they carried. It does not make sense that they did this on their own.
It is very clear that this was foisted on them, their independence has been compromised and completely obliterated. This is also clear because by doing what they have done, Caleb Fundanga’s central bank has opened the market to open-ended system-wide risks that they cannot easily control. In other words, in attacking Rajan they have attacked all the banks in our country. And the weak banks, especially those whose ownership is predominantly Zambian, are going to feel the consequences of this recklessness for a very long time to come.
We should not forget that our financial sector is still very small and fragile. Ours is a very small economy. And the destruction of the banking sector during the Frederick Chiluba years when banks where collapsing like dominos has not been forgotten by our people. That period coincided with Chiluba’s reckless neo-liberal wanton destruction of the economy which left many of our people on the streets without jobs.
Some of those who lost jobs put the little they where paid in some of these banks which collapsed. And Rupiah was a shareholder and director in Africa Commercial Bank which went under with many Zambians, including this newspaper, losing their money. Against this background, how can Caleb agree to preside over the destruction of a nascent banking sector that has taken so much effort to nurse back to health.
They should have known that the measures they have taken on Finance Bank will lead to a run on the bank, would impair the bank’s capacity and bleed it to death. Was this their intention? Or can they tell us that what is happening to Finance Bank today was not foreseen or could have not been foreseen?
What then was so important which necessitated the clearly reckless measures which they have taken? What justifies Caleb’s deployment of the equivalent of a nuclear bomb on our financial sector? We say this because in financial terms what they have done is to destroy the fibre that constitutes the fabric of banking.
They have destroyed confidence in their ability to fairly regulate the banking sector without bowing to political pressure. And once confidence is lost in a market it takes many years to restore it if at all.
And in the meantime the economy is dragged down by a skittish banking sector which is too scared to do its work properly for fear of political reprisals. Every activity that they undertake has to be looked at through the extra spectacles of political correctness. The banks start behaving like bad newspapers, they engage in unhealthy self censorship.
Confidence is a foundation upon which a healthy banking sector is built. If you destroy confidence you make it very difficult for the banking sector to make meaningful contribution to the economy. And this is what Caleb, at the behest of his political masters has done to our country.
Surely, whatever problems Finance Bank had could have been resolved at a cheaper cost to the taxpayer than what the government is today pumping into it. When one thinks that this was just to fix Rajan then the price becomes even more obnoxious. Why risk the whole banking sector just to fix an individual? But this is consistent with the way Rupiah behaves and operates. It seems to him cost does not really matter.
What matters is his getting what he wants. To him, power is there to be used to crush his enemies, real or perceived. Rupiah doesn’t know that the exercise of power must be the constant practice of self-limitation and modesty.
Labels: BOZ, CALEB FUNDANGA, CORRUPTION, FINANCE BANK, RAJAN MAHTANI
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K350 billion leaves Finance Bank
By George Chellah and Maluba Jere
Wed 15 Dec. 2010, 04:00 CAT
FINANCE Bank has recorded withdrawals of more than K350 billion as uncertainty over the bank’s future increased among corporate and individual depositors.
And Lusaka High Court judge-in-charge Philip Musonda has reserved ruling to December 27, 2010 on whether or not shareholders of Finance Bank Zambia Limited (FBZL) should be granted an injunction to restrain Bank of Zambia (BoZ) from taking possession of the bank.
According to sources within FBZL, the bank had continued recording high withdrawals following the BoZ take-over last week Friday.
“Just like you have reported today Tuesday, as of yesterday we actually recorded withdrawals in the range of K350 billion by both individuals and corporate depositors of the bank. You must understand that out of the approximately K350 billion, about K250 billion alone was from the main branch at the head office,” the sources said.
The huge withdrawals also sent panic within the bank forcing the new managers, First Rand Bank to instruct all branches to phone and assure top 20 depositors that their money was safe and the bank was still sound.
“Of course some of the people called were still doubtful of our assurances,” the sources said.
The sources disclosed that the huge withdrawals were an indication that people had lost confidence in Finance Bank.
“You can see, it is clear that people have lost faith in the whole exercise by the central bank that is why they are withdrawing money from the bank at this very fast rate because banking is based on trust,” the sources said.
“I doubt if we are really capable of meeting the withdrawals of about K350 billion from our coffers. At this stage, it’s obvious that the K1.2 trillion you wrote about is the one that is now being used to make things look stable within the bank.”
And ministry of finance sources complained that they had now learnt that the decision taken by BoZ governor Dr Caleb Fundanga was not even brought to the attention of the central bank’s management committee.
“This decision on Finance Bank never involved the BoZ management committee. We are told that it was only a few people who dealt with this issue. I say so because had the decision on Finance Bank involved the management committee, they would have come up with a better option,” the source said.
“There were better options in dealing with Finance Bank instead of this highly suspicious scheme as accurately reported by The Post. But having read what you have exposed, we now understand why even the management committee was kept in the dark about this whole scheme.”
Kasama Central PF member of parliament Geoffrey Bwalya Mwamba popularly known as GBM yesterday said he transferred over K1.5 billion from Finance Bank on Monday.
“I transferred that money to another bank because I don’t want to sink with Finance Bank. It happened to me when I was dealing with Meridien Bank. I almost sank with them because immediately I withdrew the money over K2 billion at that time the bank went under,” Mwamba said.
“The same thing applied to Commerce Bank. The same applied again to Credit Africa Bank (CAB), when I withdrew my money that bank went under. I feel that Finance Bank is no longer safe. I don’t want to sink with them or lose my money.”
He said it was clear that Finance Bank had become a political bank.
“And those of us who are in the opposition should be careful because our accounts will be scrutinised. Fortunately, in my case I have never been in minus with Finance Bank. I have always been in credit for fear that if you borrow they can embarrass you,” Mwamba said.
“That’s why I transferred over K1.5 billion from one account and today Tuesday I am doing the same from another account because it’s not safe anymore.”
Chongwe MMD member of parliament, Sylvia Masebo, was also found at Finance Bank’s Mulungushi branch yesterday instructing bank staff to transfer undisclosed amounts of money to other accounts.
And judge Musonda has reserved ruling to December 27, 2010 on whether or not shareholders of FBZL should be granted an injunction to restrain BoZ from taking possession of the bank.
Judge Musonda reserved ruling to that date after an inter-parte hearing in chambers yesterday.
The shareholders of FBZL have asked the court to declare that powers vested in the BoZ by the Banking and Financial Services Act chapter 387 of Zambia can not be used to deprive the shareholders of a financial service provider of their interest in the said entity and vest the same in the government.
The shareholders also want an injunction restraining BoZ or its agents from taking possession of FBZL or otherwise from depriving them (shareholders) of their interests in FBZL until after the trial of the court action or a further order.
According to a statement of claim filed in the Lusaka High court recently, Finsbury Investment Limited, Clarkwell Limited, Job Albert Samuel, Estate of the late Pat Bwalya Puta and Patrick Chamunda are seeking an injunction against BoZ.
They stated that BoZ was about to act in breach of the provisions of the Bank and Financial Services Act by taking possession of FBZ and transfer the same to the government.
The shareholders argued that the action by BoZ would not compensate them in any way.
After reading the affidavit, judge Musonda said the case was best suited for an inter-parte hearing considering the complexity and urgency of the matter.
And judge Musonda has allowed Attorney General Abyudi Shonga to join the proceedings.
In an affidavit in support of ex-parte summons for leave for a non joinder of party, Shonga applied to join the proceedings pursuant to Order 15 Rule 6 (2) (b) (ii) of the Supreme Court practice 1999 edition.
He stated that the case before court raised a wide public interest and policy saying FBZ was a bank in which the depositors (public) were likely to be affected by the outcome of the case.
Shonga explained that as custodians of public interest and policy, it would be in the interest of justice to have the state join as an intervener.
He said there would be no prejudice to any of the parties to the action if the state joined the proceedings.
Judge Musonda has asked the parties to file written submissions in the case on December 17, 2010.
Labels: BOZ, CORRUPTION, FINANCE BANK, GBM, GEOFFREY MWAMBA, PHILIP MUSONDA
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COMMENT - Excellent.
ZCSMBA urges mindset change on SMEs
By Kabanda Chulu in Kitwe
Wed 15 Dec. 2010, 04:00 CAT
THERE is need to change the mindset of people running Small Medium Enterprises (SMEs) for them to contribute to wealth creation. This is according to Zambia Chamber of Small Medium Business Associations (ZCSMBA) Copperbelt association representative Michael Sinkamba.
During a workshop on access to markets and finance training of entrepreneurs hosted by the Kitwe District Business Association, an affiliate of ZCSMBA and the Zambia Development Agency (ZDA), Sinkamba said SMEs’ quest for expansion was constrained by finances.
“Many financial institutions including banks claim that SMEs do not send adequate documents whenever they apply for credit ands to address this challenge we have partnered with ZDA and other institutions so that we explain how things should be done because skills training is important in every sphere of development,” said Sinkamba on Monday.
“This workshop will unlock the SMEs by changing their mindset so that they grow their businesses to result in wealth creation as well as contributing towards attaining economic development and the vision 2030 of becoming a middle income country.”
The training workshop which ends on Friday has drawn various entrepreneurs in the region and participants are expected to acquire knowledge on book keeping, preparing a business plan, sourcing business from corporate entities and taxation registration requirements.
Labels: PETER SINKAMBA, SMEs, WORKSHOPS, ZCSMBA
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JCTR sets agenda for visiting Zoellick
By Mutale Kapekele
Wed 15 Dec. 2010, 04:03 CAT
THE World Bank president Robert Zoellick should address Zambia’s borrowing mechanism, says the Jesuit Centre for Theological Reflections. Zoellick is expected in the country tomorrow on a two-day visit. Currently Zambia has no borrowing mechanism and the minister of finance has the power to contract debt without consultation.
JCTR programs officer for debt, aid and trade Chilufya Chileshe said if left unchecked, the country could increase its debt burden.
“We expect them World Bank to show commitment to helping Zambia and to ensure that the country had a responsible borrowing mechanism,” Chileshe said.
“We Zambia still don’t have the legal framework for debt contraction; the minister of finance can still borrow on the country’s behalf without consulting anyone, not even Parliament. It is very important that currently the bank says Zambia’s economic indicators look fairly good but they should assist us to come up with a mechanism that will allow Parliament and the public to get involved in debt contraction.”
She said multilateral organizations like the World Bank should practice responsible lending as they dealt with countries like Zambia.
“They should ensure that there is responsible lending,” she said. “They should first of all establish that leaders have the capacity to manage the funds, that leaders are not corrupt and that they will use those funds for the benefit of the people they govern. Rich countries should not give resources where they know that there is no capacity.”
Chileshe said JCTR expected Zoellick to address the issue of World Bank projects that were result oriented and also to give his views on the country’s development progress.
Chileshe said the bank should assist Zambia to leverage its China and India relationship for the country’s benefit.
While in Zambia, Zoellick is expected to meet with President Rupiah Banda, the mining stakeholders and civil society.
Zoellick will also visit World Bank funded projects including a site visit at Zambeef, which recently received US$10 million funding from the bank.
Labels: CHILUFYA CHILESHE, JCTR, ROBERT ZOELLICK, World Bank
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Address challenges of access to US markets - Kamayoyo
By Mutale Kapekele
Wed 15 Dec. 2010, 04:00 CAT
THE African Growth Opportunity Act is burdensome to sub-Saharan African countries as the continent has failed to penetrate the US market, says economist Kelvin Kamayoyo.
Kamayoyo, who congratulated Zambia for its selection to host next year's AGOA, said African negotiators should actively engage the US to produce a flexible trade and investment deal that was fair and less burdensome.
Kamayoyo, in an interview, wondered how Africa failed to access a seemingly open American market since the year 2000 when the AGOA was born.
He said AGOA beneficiary countries had struggled to effectively penetrate the US market due to the long distance “which exposes firms to high transaction costs, existence of sub-Saharan Africa inland poor transport infrastructure and generally high costs of doing business.”
Kamayoyo urged Zambia, which heads the negotiations team for Africa, to use the forum to address challenges of accessing the US market and find a lasting solution if the AGOA framework was to increase and effectively contribute to poverty alleviation especially among the eligible sub-Saharan African countries.
Kamayoyo also advised COMESA to take up an active negotiating role to ensure that its member countries easily accessed the US market.
Since 2000, there has been little trade between the United States and the 38 AGOA eligible African countries.
According to the US Trade Policy Review Report for 2010, AGOA and related imports were valued at US$33.7 billion in 2009, down 49 per cent from 2008 largely due to the downturn in the global economy.
Kamayoyo argued that the little trade experienced within AGOA framework could be attributed to the nature of the framework which “appears to be somehow selective and unpredictable because eligibility is annually assessed based on unilateral criteria with particular focus on improvement on labor rights, rule of law and movement toward a market-based economy.”
Kamayoyo said Zambia exceedingly met the AGOA criteria and deserved to benefit from the trade preferential market access offered by the US.
Labels: AGOA, KELVIN KAMAYOYO, MARKETS
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COMESA economies remain vulnerable
By Mutale Kapekele
Wed 15 Dec. 2010, 04:02 CAT
ECONOMIES within COMESA remain vulnerable to the aftershocks of the global economic crisis due to continued dependence on commodities, says COMESA secretary general Sindiso Ngwenya.
Speaking at the 29th meeting of the COMESA council of ministers, Ngwenya emphasized the urgent need to diversify from commodity trade to other sectors.
“The recovery of our economy remains fragile because it depends on the price of our export commodities which have remained all time high except for 2008 and 2009,” Ngwenya said at a meeting that took place in Lusaka on Friday.
“It is interesting to note that the exports in manufactured products were not affected. The lesson we can draw from this is that the time is now for COMESA countries to revisit the strategy for market integration that has placed emphasis on trade; that is trade integration, to production integration.”
Ngwenya informed the meeting that the huge demand by nations such as China and India had helped drive-up prices of commodities since 2008, handing a reprieve for commodity exporters even as other sectors took a hit.
“It is, however, not certain that these prices will remain at an all time high because should demand fall there will be a precipitous drop in commodity prices that will have negative social consequences,” he said.
Statistics show that the global financial crisis hurt the value of intra-COMESA trade, which declined by seven per cent, from US$13.7 billion in 2008 to US$12.3 billion last year.
The bloc’s total trade with the rest of the world, declined by 20 per cent from US$301 billion in 2008 to US$241 billion in 2009.
Ngwenya said although economies within COMESA did not suffer devastating effects as witnessed in developed countries, there were still threats of aftershocks unless member states diversified their respective economies.
“The COMESA regional economy will remain vulnerable to external shocks as long as the economies are not structurally transformed,” said Ngwenya. “For example, one of the main factors that contributed to the decrease in intra COMESA trade in 2009 was the fall in the demand for commodities, such as, tea and copper in the importing countries.”
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Govt to reclaim idle mining claims
New Ziana.
The Government is amending the Mines and Minerals Act to provide for the expropriation of all mining claims that are not being exploited.
Deputy Prime Minister Professor Arthur Mutambara said this in the House of Assembly while responding to a question from Buhera North legislator Mr William Mutomba, who wanted to know the policy of Government towards ensuring that all allocated mine claims were being exploited.
A significant proportion of allocated claims is known to be lying idle as the owners hold them for speculative purposes.
"Without pre-empting the work of Cabinet, the Mining Bill will apply the use it or lose it rule for companies and individuals holding onto claims," he said.
Prof Mutambara said the new law would also require determination of the net value of claims before they are sold. He said this would improve Government’s earnings from the minerals sector.
This year, Government grossed a paltry US$4 million in direct and indirect taxes from mining earnings totalling a whopping US$600 million.
"We are revisiting the notion of our natural resources, the asset value of the resource must be understood," he said.
"You are not going to get the claims for free as in the past. Most of these miners in Zimbabwe got these assets for free, that is a travesty."
Prof Mutambara said Zimbabwe could clear its debt hovering around US$7 billion from its vast mineral resources.
"How can you be in debt if you have the Great Dyke?" he asked.
The mining sector has this year grown by 47 percent on the back of firming mineral prices but continues to be blamed for contributing insignificantly to the fiscus due to low royalties.
Government has since increased gold and platinum royalties by 0,5 percent to 4,5 percent and 5 percent respectively to boost its pickings in royalties from the sector.
The new royalties will become effective next year. — New Ziana
Labels: ARTHUR MUTAMBARA, MINING, NATIONALISATION, WILLIAM MUTOMBA
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Wikileaks: Documents Confirm US Plans to Destabilize Venezuela
Global Research, December 16, 2010
by Eva Golinger
State Department documents published by Wikileaks evidence Washington's plans to "contain" Venezuela's influence in the region and increase efforts to provoke regime change.
A substantial portion of the more than 1600 State Department documents Wikileaks has published during the past two weeks refer to the ongoing efforts of US diplomacy to isolate and counter the Venezuelan government.
Since Hugo Chavez won the presidency for the first time in 1998, Washington has engaged in numerous efforts to overthrow him, including a failed coup d'etat in April 2002, an oil industry strike that same year, worldwide media campaigns and varios electoral interventions.
The State Department has also used its funding agencies, USAID and the National Endowment for Democracy (NED), to channel millions of dollars annually to anti-Chavez NGOs, political parties, journalists and media organizations in Venezuela, who have been working to undermine the Chavez administration and force him from power.
When these interventionist policies have been denounced by the Chavez government and others, Washington has repeatedly denied any efforts to isolate or act against the Venezuelan head of state.
Nonetheless, the State Department cables published by Wikileaks clearly evidence that not only has Washington been actively funding anti-Chavez groups in Venezuela, but it also has engaged in serious efforts during the past few years to convince governments worldwide to assume an adversarial position against President Hugo Chavez.
"CONTENTION" PLAN AGAINST A "FORMIDABLE FOE"
In a secret document authored by current Deputy Assistant Secretary of State for Western Hemisphere Affairs, Craig Kelly, and sent by the US Embassy in Santiago in June 2007 to the Secretary of State, CIA and Southern Command of the Pentagon, along with a series of other US embassies in the region, Kelly proposed "six main areas of action for the US government (USG) to limit Chavez's influence" and "reassert US leadership in the region".
Kelly, who played a primary role as "mediator" during last year's coup d'etat in Honduras against President Manuel Zelaya, classifies President Hugo Chavez as an "enemy" in his report. "Know the enemy: We have to better understand how Chavez thinks and what he intends...To effectively counter the threat he represents, we need to know better his objectives and how he intends to pursue them. This requires better intelligence in all of our countries". Further on in the memo, Kelly confesses that President Chavez is a "formidable foe", but, he adds, "he certainly can be taken".
In 2006, Washington activated a Director of National Intelligence (DNI) Mission Manager for Venezuela and Cuba. The mission, headed by clandestine CIA veteran Timothy Langford, is one of only four such intelligence entities of its type. The others were created to handle intelligence matters relating to Iran, North Korea and Afghanistan/Pakistan, evidencing the clear priority that Washington has placed on Venezuela as a target of increased espionage and covert operations.
Another suggestion made by Kelly in the secret cable, is a recommendation to increase US presence in the region and improve relations with Latin American military forces.
"We should continue to strengthen ties to those military leaders in the region who share our concern over Chavez".
Kelly also proposed a "psychological operations" program against the Venezuelan government to exploit its vulnerabilities. "We also need to make sure that the truth about Chavez - his hollow vision, his empty promises, his dangerous international relationships, starting with Iran - gets out, always exercising careful judgment about where and how we take on Chavez directly/publicly".
Kelly recommended US officials make more visits to the region to "show the flag and explain directly to populations our view of democracy and progress". Kelly also offered details on how Washington could better exploit the differences amongst South American governments to isolate Venezuela:
"Brazil...can be a powerful counterpoint to Chavez's project...Chile offers another excellent alternative to Chavez...We should look to find other ways to give Chile the lead on important initiatives, but without making them look like they are our puppets or surrogates. Argentina is more complex, but still presents distinct characteristics that should inform our approach to countering Chavez's influence there".
PRESSURING MERCOSUR
Kelly also revealed the pressure Washington has been applying to Mercosur (Market of the South) to not accept Venezuela as a full member in the regional trade bloc. "With regard to Mercosur, we should not be timid in stating that Venezuela's membership will torpedo US interest in even considering direct negotiations with the trading bloc".
MEXICO, BOGOTA & OTHERS ASK TO "FIGHT" CHAVEZ
The cables published by Wikileaks not only reveal US hostility towards Venezuela, but also the requests made by regional leaders and politicians to work against President Chavez.
One secret document from October 2009 referring to a meeting between Mexican President Felipe Calderon and US Director of National Intelligence Dennis Blair tells of how Calderon confessed he was "trying to isolate Venezuela through the Rio Group". The Mexican head of state also appealed to the US intelligence chief, "The region needs a visible US presence...the United States must be ready to engage the next Brazilian president. Brazil, he said, is key to restraining Chavez...The US needs to engage Brazil more and influence its outlook".
URIBE REQUESTS "MILITARY ACTION" AGAINST CHAVEZ
In several secret documents authored by the US Embassy in Colombia, efforts by ex President of Colombia, Alvaro Uribe, to convince Washington to take action against Venezuela are evidenced.
In one cable from December 2007, the US Ambassador in Colombia recounts a meeting between Uribe and a delegation of US congress members, including Senate Majority Leader, Harry Reid. According to the text, Uribe "likened the threat Chavez poses to Latin America to that posed by Hitler in Europe".
And in yet another report summarizing a January 2008 meeting between Uribe and the Head of the Joint Chiefs of Staff, Admiral Michael Mullen, Uribe is quoted as recommending military action against Venezuela.
"The best counter to Chavez, in Uribe's view, remains action - including use of the military".
Later in that same secret cable, Uribe urged Washington to "lead a public campaign against Venezuela...to counter Chavez..."
OPPOSITION BISHOP REQUESTS US ACTION
In addition to regional politicians and US diplomats urging plans against President Chavez, one cable reveals how during a meeting between a Venezuelan Archbishop and the US Ambassador, the religious leader asked for Washington to act against his own government. At the meeting, which took place in January 2005 according to the document, Archbishop Baltazar Porras told Ambassador William Brownfield that the "US government should be more clear and public in its criticism of the Chavez administration" and that the "international community also needs to work and speak out more to contain Chavez..."
The plans and strategies revealed through these official documents confirm what other evidence has already corroborated regarding Washington's increase in aggression towards Venezuela. The US continues to fund opposition groups that act to undermine Venezuelan democracy while escalating its hostile discourse and policies against the Chavez government.
This week's Senate affirmation of Larry Palmer as Ambassador to Venezuela will only make matters worse. Palmer was rejected by the Venezuelan government after he made negative statements about the Chavez administration in August. Washington's insistence of sending Palmer appears to be an effort to provoke a rupture in diplomatic relations.
Eva Golinger is a frequent contributor to Global Research. Global Research Articles by Eva Golinger
Labels: COUP, HUGO CHAVEZ, VENEZUELA, WIKILEAKS
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Grace Mugabe sues paper over WikiLeaks story
HARARE, ZIMBABWE Dec 16 2010 11:02
Zimbabwe President Robert Mugabe's wife is suing a newspaper for $15-million for publishing a WikiLeaks cable saying she benefited from illicit diamond trade, media reported on Thursday.
Last week, the Standard newspaper quoting a cable sent by United States ambassador James McGee to Washington in 2008, reported that Grace Mugabe gained millions of dollars from illegal diamonds mining, in the Marange district of eastern Zimbabwe.
The state-owned Herald reported that the First Lady had on Wednesday filed the defamation suit against the Standard.
"The plaintiff is of high standing in Zimbabwe ... furthermore she is the wife of His Excellency the President of Zimbabwe," Mugabe's lawyer, George Chikumbirike said.
'Mother of the nation'
"The imputation of such conduct on a person of such high standing, the mother of the nation, is to lower the respect with which is held by all right thinking persons, to a point of disappearance," said the summons.
Chikumbirike said the article wrongly portrayed Grace as corrupt in that "she used her position as the First Lady to access diamonds clandestinely, enriching herself in circumstances in which the country was facing serious foreign currency shortages".
In the cable, McGee says "high-ranking Zimbabwean government officials and well-connected elites are generating millions of dollars in personal income by hiring teams of diggers to hand-extract diamonds".
The cable then discussed a meeting with Andrew Cranswick, chief executive of the British mining firm African Consolidates Resources, that had a claim to the Chiadzwa mine revoked by the Harare government, according to McGee.
"According to Cranswick, there is a small group of high-ranking Zimbabwean officials who have been extracting tremendous diamond profits from Chiadzwa," it said, naming Mugabe's wife Grace and Central Bank governor Gideon Gono.
Other Zimbabwean government officials implicated in the scandal include Vice-President Joyce Mujuru and the head of the army, General Constantine Chiwenga, according to the cable. - AFP
Labels: ANDREW CRANSWICK, DEFAMATION, GRACE MUGABE, MARANGE DIAMOND FIELDS, WIKILEAKS
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WikiLeaks: BP had gas blowout in 2008
NEW YORK, UNITED STATES Dec 16 2010 06:22
Leaked US diplomatic cables reveal BP suffered a blowout on an Azerbaijan gas platform in September 2008 and was fortunate to evacuate workers safely after a blast that preceded the one that killed 11 workers in the Gulf of Mexico in April, the Guardian newspaper reported.
Other cables leaked by the web site WikiLeaks claim Azerbaijan's president accused BP of stealing oil from his country and using "mild blackmail" to secure rights to develop vast gas reserves in the Caspian Sea region.
Also, Chevron negotiated with Tehran about developing an Iraq-Iran cross-border oilfield despite US sanctions against Iran, according to the cables leaked to the Guardian.
The leaks came as the whistleblower site's jailed founder Julian Assange prepared for a challenge in the British high court to the decision to grant him bail. Swedish authorities, who want to question Assange on allegations of sexual misconduct, say he should remain in custody as he is a flight risk.
The Guardian said the latest leaks of US diplomatic cables showed striking resemblances between BP's Gulf of Mexico disaster and a little-reported gas leak in Azerbaijan experienced by the British firm 18 months beforehand.
The cables reveal, the Guardian said, that some of BP's partners in the gas field were upset the company was so secretive about the incident that it even allegedly withheld information from them. They also say that BP was lucky that it was able to evacuate its 212 workers safely after the incident, which resulted in two fields being shut and output being cut by at least 500 000 barrels a day with production disrupted for months.
The Guardian said one leaked embassy cable reports for the first time that BP suffered a blowout in September 2008, as it did in the Gulf with devastating consequences in April, as well as the gas leak that the firm acknowledged at the time.
"Due to the blowout of a gas-injection well there was 'a lot of mud' on the platform, which BP would analyse to help find the cause of the blowout and gas leak," the cable said, according to the Guardian.
'Bad cement job'
According to another cable in January 2009, BP thought that a "bad cement job" was to blame for the gas leak in Azerbaijan. More recently, BP's former chief executive Tony Hayward also partly blamed a "bad cement job" by contractor Halliburton for the Deepwater Horizon disaster in the Gulf of Mexico.
Other leaked cables reveal President Ilham Aliyev accused BP of stealing billions of dollars of oil from Azerbaijan and using "mild blackmail" to secure the rights to develop vast gas reserves in the Caspian Sea region.
Aliyev said the oil firm tried to exploit his country's "temporary troubles" during a gas shortage in December 2006. In return for making more gas supplies available for domestic consumption that winter, BP wanted an extension of its lucrative profit-sharing contract with the government and the go-ahead to develop Caspian gas reserves, one cable from the US embassy in Baku says. Aliyev also threatened to make BP's alleged "cheating" public, the Guardian said the cables show.
The paper quoted the oil firm as saying in a statement that: "BP continues to have a successful and mutually beneficial partnership with the government of Azerbaijan."
There was no immediate response from BP officials in the United States to Reuters seeking comment.
According to other cables, Iraqi Prime Minister Nouri al-Maliki claimed that Chevron negotiated with Tehran about developing an Iraq-Iran cross-border oilfield in spite of tight US sanctions, according to the Guardian.
A Chevron spokesperson told Reuters the company had not done, and would not do, anything in violation of US law.
There was no immediate comment from the US government. - Reuters
Labels: BP, CHEVRON, CORRUPTION, WIKILEAKS
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