SUSPENDED NetOne chief executive Reward Kangai allegedly aided local contractor Bopela Group, which was engaged by the telecoms firm to work on a US$3,7 million base stations installation project, to evade tax after the company was hit by a garnish order for failing to pay taxes, an ongoing probe has unearthed.

By Bernard Mpofu

This is revealed in the first draft of an audit report on NetOne titled Provision of Comprehensive Forensic Investigation Services to NetOne Cellular Services compiled by PriceWaterhouseCoopers Zimbabwe (PwC) on behalf of the Auditor-General seen by the Zimbabwe Independent.

Kangai was sent on forced leave in March after the company’s board sanctioned a forensic audit into the affairs of the country’s second largest mobile phone operator.

The audit shows that following a garnish order on Bopela by the Zimbabwe Revenue Authority (Zimra), the company’s managing director Agrippa Masiyakurima approached Kangai seeking approval to sub-contract the installation of 70 base stations to a firm which was part of the Bopela Group. This apparent conflict of interest was meant to bypass Zimra from freezing the company’s funds.

The audit says that Huawei then advised Masiyakurima to amend his tripartite agreement and appoint one of his sub-contractors as the recipient of the outstanding fees.

Macharawanda Group, a unit of the Bopela Group, was selected as the sub-contractor and a new agreement was entered into.

The Bopela project, which involved installing base stations for NetOne, is part of the multi-million-dollar equipment deal with the Chinese technology firm, Huawei.

In 2012, government partnered Huawei in rolling out NetOne’s national mobile broadband (NMBB) project as competition in the telecoms sector intensified on the back of massive growth in data and overlay services.

“We had sight of an adjustment to the Bopela Tripartite Agreement. The amendment was done on 23 November 2015. The contract price was changed from US$3,7 million to US$1 110 000. The site quantities had also been changed from 100 sites to 30 sites,” reads the draft report.

“On the same date, 23 November 2015, a Tripartite Agreement was signed between NetOne, Huawei and Macharawanda Group. The contract value was US$2 590 000 and the quantity of sites was 70 sites. Mr Masiyakurima (Agrippa Bopela) informed us that Macharawanda Group was a sub-contractor to Bopela Group on some of its projects, such as the NMBB project.

“He (Masiyakurima) informed us that his brothers, Dennis Masiyakurima, Fungai Masiyakurima and Clever Masiyakurima, were Machawaranda directors. He further stated that at the time the Bopela Tripartite agreement was amended, about 90 base foundations had been constructed.

“At the same time, Zimra had garnished the Bopela Group bank account. He informed us that had he continued to receive money into the Bopela Group bank account, he would have failed to pay his sub-contractors. As a result, he wrote a letter to Huawei presenting his case.”

The auditors, according to the probe, noted a letter from Agrippa Masiyakurima dated November 10 2015, addressed to Kangai requesting for Bopela Group to cede 70 of its 100 sites to Macharawanda Group to enable sub-contractors to be paid “while he dealt with his Zimra issues.”

“We enquired with Mr Kangai on how Macharawanda was appointed as a contractor of Huawei under the NMBB project. Mr Kangai confirmed that Macharawanda were part of the Bopela Group. He further stated that when Bopela ‘ran into trouble’ with Zimra, Bopela then recommended the use of Macharawanda Group to ensure that the project progressed according to plan.

“Mr Kangai stated that this decision was made in the best interests of the NMBB project. The intention was to ensure that the project progressed according to plan and faced no delays,” the report states.

PwC also revealed that Huawei country manager Xiaohui Bao informed the auditors that the Bopela tripartite agreement was amended and Macharawanda was entered into because Bopela could not catch up with construction progress.

“We noted a letter from Huawei addressed to Bopela Group. The letter dated 21 October 2015, and was requesting Bopela Group to submit a tax clearance certificate and invoices for 21 pine towers which had been completed by Bopela under the NMBB project. The letter also notes that the pine tree delivery progress for Bopela was very slow,” the report reads.

“Mr Bao further stated that as a result of this, NetOne recommended Macharawanda as a replacement sub-contractor for Bopela. Mr Bao said Bopela was delivering slowly and NetOne wanted things to be done faster. He informed us that the contract was changed as Bopela was approaching the completion of almost 30 base stations.

“Mr Bao informed us that to date Macharawanda is left with four base stations to complete the contracted 70 sites.

Mr Kangai confirmed that he had recommended Macharawanda to Huawei as a replacement for Bopela under this NMBB contract.”

The post Fresh NetOne corruption unearthed appeared first on The Zimbabwe Independent.

ZIMBABWE National Liberation War Veterans Association chairman Christopher Mutsvangwa yesterday hit back at President Robert Mugabe saying the ongoing arrests of war veterans was reminiscent of the Rhodesia-era repression.

Mutsvangwa, who has been removed as war vets minister and expelled from Zanu PF, said instead of cracking down on war veterans Mugabe should arrest corrupt officials, including ministers. He said Mugabe’s misplaced priorities, as evidenced by the crackdown on war veterans instead of dealing with people who loot public funds, had resulted in the economy collapsing.

“I condemn the arrest of my executive members. This comes in the wake of a mob justice type rally addressed by President Robert Mugabe yesterday (Wednesday),” said Mutsvangwa. “This high-handed over-reaction is surely uncalled for. Even the worst architects of the Rhodesian racist terror that led to genocide of thousands never got as much as this treatment after our independence.”

War veterans spokesperson Douglas Mahiya was arrested on Wednesday, while secretary-general Victor Matemadanda was picked up yesterday as Mugabe moves to silence dissenting voices amid growing social unrest in the country.
War veterans last week released describing Mugabe as a failed authoritarian leader who had abandoned ideals of the liberation struggle and ruined the economy. They demanded he should step down and also announced they had withdrawn their support for him.

“I call upon the President as Head of State to arrest forthwith the police action and the persecution of my comrades. As a fellow revolutionary and renowned statesman, why is he allowing such treatment of comrades who as young men sacrificed all they had including offering their life so freedom could be attained?” Mutsvangwa said.

“From that sacrifice, Mugabe ended up being elected president in sovereign Zimbabwe. And why the lopsided application of justice?”

Mutsvangwa also said “the likes of Jonathan Moyo, Saviour Kasukuwere, Sarah Mahoka, Mandi Chimene and other G40 cohorts have subjected Zimbabwe to every gross monstrosity”.

“As ministers, the G40 likes of Samuel Undenge plunder the public funds at will. No wonder Zimbabwe is now in economic ruin,” he said. “I appeal to the president: Can’t we just get our national priorities right? Surely an announced withdrawal of political support by my executive colleagues, no matter how wounding to historical pride, cannot be grounds for such over-reaction.”

The post Mutsvangwa condemns war vets arrests appeared first on The Zimbabwe Independent.

Pastor Evan Mawarire, #ThisFlag campaign leader, has been summoned by the Law and Order Section of the Criminal Investigations Department amid speculation that government wants to charge him again for subverting a constitutionally elected government.

By Wongai Zhangazha

Pastor Evan Mawarire

His lawyer Harrison Nkomo confirmed to the Zimbabwe Independent his client has been told to report at Harare Central Police Station on Tuesday.

Mawarire, who is in South Africa, was arrested a fortnight ago for inciting public violence. The charges were, however, changed to subverting a constitutionally elected government when he appeared in court resulting in regional magistrate Vakai Chikwekwe dismissing the case.

Prior to his arrest, Mawarire had used the social media to mobilise people to stay-away from work on July 6, as a protest against rising corruption, abuse of office by public officials and economic problems. The stay-away, which came at a time government had failed to pay workers on time, was largely successful countrywide.

Nkomo said: “Yes they called me and told me that I should make arrangements that I bring my client at the Law and Order offices at Harare Central Police Station on August 2. They said they wanted him for an interview, but it looks like they want to charge him with subverting a constitutionally elected government.”

The summoning of Mawarire comes at a time President Robert Mugabe is continuing to issue threats against the pastor.

On Wednesday, while addressing party supporters at Zanu PF headquarters, Mugabe said he would not tolerate “nonsense” from people like Mawarire. He also threatened Mawarire during the burial of former chief secretary in the Office of the President and Cabinet Charles Utete on July 19.

“We know how to deal with our enemies who have tried to bring regime change. Once you begin to interfere with politics you are courting trouble. Keep to your religious side. Zanu will not tolerate any nonsense. I am warning Mawarire…bhaibheri mapedza here (have you finished reading the bible),” Mugabe said.

The police arrested Mawarire after getting a warrant to search his house, alleging that he had stolen a baton stick and police helmet with the intention to incite violence.

However, Chikwekwe dismissed the case, accusing the state of failing to put its house in order, freeing Mawarire on the day that saw thousands of people from all walks of life stage protests and a vigil outside the courthouse.

Thousands of Zimbabweans thronged the Harare Magistrates’ Court in solidarity with him when he appeared before Chikwekwe.

He, however, fled to South Africa after his release.

In interviews with the South African media, he has indicated he would remain holed up in that country as he feared for his life following Mugabe’s threats.

At Utete’s burial, Mugabe questioned whether Mawarire was a “true preacher”, adding that he should leave Zimbabwe and settle in the countries, which were sponsoring him.

Mawarire said because of the threats he had received, he was deciding whether to return home or not.

The post Police hunt down Mawarire appeared first on The Zimbabwe Independent.

ENERGY minister Samuel Undenge reportedly blocked Econet Wireless Zimbabwe’s mobile money platform, EcoCash, from being one of the sub-vendors for power utility Zesa for unclear reasons despite the company being given the greenlight to sell pre-paid electricity tokens by Zesa’s board, it has been established.

By Bernard Mpofu

Internet service provider PowerTel, a Zesa subsidiary, was appointed as the sole aggregator for the sale of pre-paid electricity tokens in 2014 after the State Procurement Board (SPB) twice cancelled the tender citing technical irregularities.

This came after Zesa rolled out pre-paid meters in 2014 in a bid to boost revenue inflows following a high default rate by postpaid electricity users.

PowerTel’s appointment riled some of the 37 companies that had tendered for the role prompting them to approach government seeking to have the process re-tendered.

The tender was initially advertised in August 2012, but was cancelled before the closing date of submission. It was then re-issued last September, but was again cancelled by the SPB on January 2. The Ministry of Energy and Power Development appointed PowerTel soon after.

Letters seen by this paper show that EcoCash was granted permission to be one of PowerTel’s sub-vendors in May.

“Subsequent to the meeting at Zesa Holdings on 8th April 2016 attended by the Zesa Holdings board chairman, PowerTel board chairman, the group chief executive officer and consultations with the ministry, PowerTel can now connect to a wider pool of sub-vendors in order to expand the geographic footprint for the distribution network of electricity tokens,” reads an internal memo by Zesa.

“As a start, PowerTel should focus on connecting to some of the existing sub-vendors in order to reduce the tiers in the e-vending structure.”

“The new sub-vendors to be connected should go beyond the existing public and private vendors in order to improve customer convenience. For the avoidance of doubt, PowerTel can connect sub-vendors using EcoCash. This will enable PowerTel to improve its performance by the increase in its current proportion of commissions, where there will be more direct vendors and fewer sub-vendors.”

Sources at the power utility said for three years EcoCash, a mobile money transfer platform run by telecoms company, Econet, had been denied the opportunity to sell pre-paid tokens, which have been opened up to parastatals and other private players.

“The minister seems not keen to give EcoCash the go-ahead to sell the tokens despite approval from the Zesa board.

Interestingly Zesa seems to be the only parastatal not working with EcoCash, which means it is someone within the ministry,” a source said.

“Millions of Zimbabweans especially in the rural areas have to board buses to go and buy a US$10 token, which they could do within the comfort of their homes.”

Undenge did not answer calls or reply to an SMS sent to him on Wednesday.

The post Minister Undenge blocks EcoCash, PowerTel deal appeared first on The Zimbabwe Independent.

FIRST Lady Grace Mugabe celebrated her 51st birthday last Saturday, an event that prompted a deluge of epithets from cabinet ministers and heads of state entities who took the art of bootlicking to new levels.

By Herbert Moyo

It would have been comical had the country not been in the middle of a tragic socio-economic crisis.

A state-run daily marked the occasion with a 12 page supplement where the government officials and state entities fell over each other, variously describing Grace as “an astute businesswoman”, “a philanthropist”, “a visionary” “a unifier” or the “woman who conquered Africa” among other descriptions.

“You are pacesetter for Zimbabwean women through your entrepreneurial robustness that has urged on fellow women to think outside defined parameters,” said an advert from the Bindura University of Science (Bus).

Equally, and without the slightest hint of irony, Midlands State University officials said they “continue to draw inspiration from your exemplary and commendable achievements in the business sector as evidenced by the positive impact that your business ventures are making on the Zimbabwean community in line with ZimAsset national aspirations.”

The business venture in question — the multi-million-dollar Alpha Omega dairybusiness, for long touted as a model of success following the country’s controversial land reform programme — has been anything but successful as it has struggled under the weight of debt, mismanagement and misappropriation of funds.

In 2014, Grace revealed to wives of traditional chiefs that Alpha Omega owes banks over US$20 million that was used to kick-start operations.

Last October, while addressing guests at a family function in Mhondoro, President Robert Mugabe expressed his frustration over looting and corruption at the company.

“I decided to start a dairy business,” he said.

“See what was happening: nobody can tell us where the money is. Some (employees) did accounts, but prefer not to follow proper accounting procedures to hide their thievery. We have hired auditors from Ernst & Young and what they are unearthing is shocking.”

This year the business plunged to new lows when products like yoghurt and ice-cream disappeared from supermarket shelves as the company failed to meet production targets.

This is the same business which MSU and Bus fell over each other to laud Grace about.

Given a choice, it is unlikely that these and other struggling state entities like Air Zimbabwe, PSMAS, NetOne, CAAZ and ZESA Holdings would have taken up expensive acres of space in the supplement considering their precarious financial situations.

They, however, as observed by political commentator Dumisani Nkomo, have to demonstrate their allegiance to the growing Grace personality cult “which springs from widely held perceptions that she controls her husband President Mugabe and is effectively running the country.”

“Therefore, all these officials and state entities find it necessary despite the financial difficulties to fall over each other in massaging the ego of the lady perceived to be the actual ruler in the country,” Nkomo said.

Grace is complementing Mugabe in growing the First Family personality cult. Over the years Mugabe has surrounded himself with sycophants who will do anything to stroke his ego. After all, this is a path well-trodden by dictators like Adolf Hitler, Mao Tse Tung, Joseph Stalin and North Korea’s Kim Jong-un over the centuries.

The Mugabes probably stole a leaf from the copybook of their role model North Korean ally who was treated like a demi-god. The late leader Kim Jong-il had his life history re-written as part of the personality cult to state that he was born in 1942 in a secret military camp on Baekdu Mountain, where his father was waging guerrilla warfare against the imperialist Japanese. That mountain now enjoys the kind of religious significance in North Korea that is often reserved for the likes of Mount Sinai. This is despite the fact that official records of the former Soviet Union government show that Kim was actually born in a refugee camp near Khabarovsk in 1941.

“From these humble beginnings, the exaggerations of Kim’s achievements grow rapidly,” the Telegraph reported in 2011.

“He was walking at three weeks and talking at eight weeks. He wrote six operas in three years at university, as well as no fewer than 1 500 books. He is also credited with 11 holes-in-one and a 38-under par the first time he picked up a golf club and is equally a genius at architecture and directing movies.”

Not surprisingly Grace’s history has been re-imagined and presented to portray a heroic larger-than-life character whose journey to greatness began when she returned to rural Chivhu from her birthplace of Benoni in the Eastern Rand South Africa.

Like the North Korean leaders, Zimbabweans are often shown images of Grace surrounded by adoring children suggesting that she is indeed a loving mother of the nation. She was even fraudulently awarded a dubious PhD by her cronies at the University of Zimbabwe. Perhaps these images would have struck a chord and the public would have given her the benefit of the doubt but her conduct since her entry into politics in 2014 as secretary of the Zanu PF women’s league has done her no favours.

Far from being the unifier that the supplement called her, Grace’s entry into mainstream politics signalled the beginning of probably the biggest purges in Zanu PF since its formation in 1963. Her unsubstantiated and reckless allegations set the tone for the dismissal of former vice-president Joice Mujuru and several bigwigs for purportedly plotting the ouster and assassination of Mugabe.

There has been little if any evidence to suggest that Grace is the caring and loving mother so glowingly described in the supplement. Rather her rallies which were beamed live on state television have shown Grace to be an emotionally-charged and hysterical woman given to salacious gossip and crude expletive-laden language not fit for a First Lady or a person who aspires for universal acclaim.

“I am not Mugabe’s b****,” Grace disgracefully thundered while addressing a rally in Chiweshe in February. Mugabe has also complained about her behaviour in a leaked 41-minute audio tape.

“Once she decides things should be done in a certain way, then that’s it. You can argue and shout at each other to no avail. I end up surrendering, giving in because we cannot continue the slanging match. What will the children say when we continue insulting each other,” Mugabe said of Grace.

Government officials, struggling state entities and the Pravda-like state media could do well to heed the late 1990s witty Texas governor Ann Richards who famously remarked that “you can put lipstick on a hog (pig) and call it Monique, but it is still a pig.”

The post Grace Mugabe: Putting lipstick on a pig appeared first on The Zimbabwe Independent.

CABINET has rejected a proposal to give convicted fraudster and South African businessman Niko Shefer, the task of refurbishing, upgrading and computerising the country’s border posts amid reports that government fears massive smuggling of goods and revenue loses.

Wongai Zhangazha

Zimbabwe has 15 border posts, with the Beitbridge post being the busiest as it handles more than 3 500 vehicles and 9 000 people daily during off peak periods.

The majority of the country’s borders are porous, while travellers face numerous challenges, including delays in the clearance of both human and commercial traffic due to shortage of resources and use of outdated equipment among other things.

Sources in government said cabinet recently threw out a proposal by Shefer to upgrade the country’s borders to international standards and instead recommended that government takes over the refurbishment of the border posts.
Government fears that allowing an individual to control the borders could lead to massive smuggling and security breaches.

“A cabinet committee chaired by Vice-President Emmerson Mnangagwa rejected the proposal for security and economic reasons. Government felt that an individual should not be given control over all the countries borders. The fear is that this could possibly give Shefer so much power and also result in the borders becoming more porous,” said an official.

The source said the proposal to work with Shefer, often described by South African media as a “shady businessperson”, sparked controversy as many felt the move would compromise the country’s security.

Shefer is not new to controversy. In March he was sucked into a US$3 million fuel scam in which a local oil company accused a British Virgin Islands-domiciled firm of fraudulently selling its four million litres of diesel worth US$2,6 million and pocketing the money.

The deal also dragged in First Lady Grace Mugabe’s son Russell Goreraza and Defence minister Sydney Sekeramayi’s son Simukai.

Efforts to get a comment from Shefer — who has delved in murky mining activities in Democratic republic of Congo and Liberia — were fruitless as his secretary said he was in a meetings.

His secretary also said it would be difficult to contact Shefer as he was travelling outside South Africa.

The post Govt blocks shady SA tycoon from upgrading border posts appeared first on The Zimbabwe Independent.

THE long-awaited dualisation of the Beitbridge-Harare-Chirundu highway now estimated to cost US$3 billion — a dramatic price escalation from the initial US$2 billion — has moved a step closer after the dodgy companies awarded the project began meetings in Harare this week to seal final agreements with government.

By Herbert Moyo

The project was awarded to Chinese firm China Harbour Engineering Company Ltd (CHEC), which was blacklisted by the World Bank for fraud and corruption.

Austrian company Geiger International, which specialises in military equipment not construction, will finance the project.

CHEC, a subsidiary of China Communications Construction Company (CCCC) Limited, has attracted controversy in Uganda and several other countries for shady deals.

CCCC has a murky past after it was blacklisted by the World Bank over fraudulent practices by its predecessor company China Road and Bridge Corporation in 2009.The debarment will only end next year.

“The World Bank today announced the debarment of, and all its subsidiaries, for fraudulent practices under Phase 1 of the Philippines National Roads Improvement and Management Project. Under the sanction, CCCC is ineligible to engage in any road and bridge projects financed by the World Bank Group until January 12, 2017,” the bank stated in a press release dated July 29 2011.

Despite the corrupt history of its parent company, CHEC was still awarded the massive project by government.

Transport minister Joram Gumbo this week told the Zimbabwe Independent that representatives of the two firms arrived last Thursday and have been holding discussions to come up with a bill of quantities ahead of meetings with government.

“Things are definitely moving. The contractor and the financier are in the country and they are working on an implementation plan which they will present to us when we begin our meetings with them this week,” Gumbo said on Monday.

He said government has been working on the basis of an estimate of US$2,7 billion, but the true cost of the project will only be known after the meetings which will come up with the “proper and final bill of quantities.”

“We have said that the estimated cost of the road is US$2,7 billion, but that is only an estimate. However, since they (contractor and financier) are now in the country, we will come up with a proper bill of quantities,” Gumbo said.

Zimbabwe is the artery and hub of Sadc’s road transport network linking Southern Africa with the rest of Africa.
The Beitbridge-Harare-Chirundu highway facilitates the movement of millions of people between Southern Africa and central, east and north Africa while also facilitating regional trade.

The government has, however, failed to repair and upgrade the highway and many other roads which date back to the Rhodesian era.

But it was forced into action after learning of plans by South Africa and other regional countries to construct a new road which will bypass Zimbabwe. Zimbabwe’s neighbours are unhappy with the bad state of its road network.
Local engineers were last month deployed on site to carry out exploratory work.

However, government is yet to sign a memorandum of understanding (MoU) and a final agreement for the project. Gumbo said that the MoU will “soon” be signed after certain processes had been agreed on.

We have a Gantt chart and we have stages that we have to follow one after the other until we get to the ground-breaking event. This is the first time they are meeting and they have to agree on the programme and implementation plan. Once we finalise that we will sign an MoU and we will ask His Excellency (President Robert Mugabe) to conduct the ground-breaking ceremony,” Gumbo said.

He said the project would create employment for at least 300 000 people, some as suppliers, some in clearing the stretch and others in the construction.

The post US$3bn Beitbridge-Chirundu highway project stinks graft appeared first on The Zimbabwe Independent.

NATIONAL Railways of Zimbabwe (NRZ) employed more than 20 000 employees in the 1990s. However, following extended years of mismanagement and corruption, the company, saddled with a US$144 million debt, has become a pale shadow of the giant it was. NRZ now employs just 5 700 people and will soon retrench more than 1 000 workers. Our reporter Hazel Ndebele (HN) this week interviewed NRZ board chair Larry Mavhima (LM) on the challenges the company is facing and what needs to be done to get it back on the rails. Below are the excerpts:

NRZ board chair Larry Mavhima

HN: NRZ has gone down over the years and needs serious recapitalisation. How much does it need to recapitalise?

LM: The global figure we need right now in order to get NRZ where it was before is US$650 million. This is not money that we are saying should come in all at once. As NRZ and the board we have adopted a position where we will implement a bite-size approach, which basically means we will not take more than we can chew. We will recapitalise NRZ in phases and in terms of what our greatest need would be.

We are looking into bringing between 800 to a 1 000 brand new wagons and between 30 to 50 brand new locomotives as we recapitalise. We would also want to get an efficient railway system to ensure that the permanent way is in good rail worthy condition.

We would attend to what we call the centralised train control system which would enable us to monitor the movement of a train within a distance and be able to communicate with it, for example, you can slow down the train when it is moving too fast or stop it in times of danger. At the moment we are using the GPS-based train system.

HN: What happened to the Development Bank of Southern Africa (DBSA) loan to NRZ?

LM: Contrary to what most people say that we have dropped the DBSA loan, it is actually still under consideration. The board has agreed that we want a structured transparent, fair way of dealing with any potential financiers and investors. We have actually appointed a transaction advisor, Deloittes and Touche, to evaluate and adjudicate tenders by various companies.

HN: Are there any plans for Public-Private Partnerships (PPPs) or joint ventures to resuscitate NRZ, and if that is the case, who have you talked to so far?

LM: Yes, we already have PPPs and mostly with local companies. We have a lot of people who have expressed interest in different areas and they include the Chinese, Egyptians, Europeans and even Zimbabweans. This shows us that NRZ is an attractive investment opportunity.

On Friday last week we held an annual general meeting where we agreed on project information memorandum (PIM), which states what we would like to see as NRZ. We agreed that by mid-August we will do a Request For Proposals (RFP) where all those interested in the running of NRZ whether they are the operators, financiers or investors they will come and do a due diligence on NRZ and they will prepare their documents based on PIM.

We are giving everyone a chance, including DBSA. There will be a start date and a closing date for a period of two months. After all that is done management and the transaction advisor would then adjudicate proposals and make a recommendation to the board.

HN: What capacity does NRZ have when fully operational?

LM: NRZ used to carry 18 million tonnes of goods per year, but now we are only carrying three million. Last year we lost money on the passenger trains and what we are saying is that priority right now is carrying as much goods as we can before we move into introducing your bullet trains.

We are engaging government to introduce a policy where certain goods should only be transported by rail. These are goods such as coal, granite stones, chrome and most of the minerals.

HN: NRZ has proposed to retrench between 1 000 to 1 400 workers, so when are you going to carry out this exercise?

LM: As soon as the auditor-general is done with the forensic report we will carry out the exercise. The audit will help us in terms of the optimum number we will need to get rid of and in which areas; the numbers could actually be more than we have estimated. It needs to be done because the enterprise cannot continue to carry people it cannot afford to pay.

HN: Where is NRZ going to get the money to pay retrenchment packages as it is broke and over a period of how long?
LM: As I mentioned earlier we are restructuring the balance sheet which will help us fund such and also as when we do get an investor we will factor that in to see how we can streamline the organisation.

HN: What vision does your board and management have for NRZ?

LM: Obviously, the vision is to see the successful turnaround of the parastatal into a viable business entity at the earliest of possible time. Our vision is to be a key player in terms of the economic turnaround of Zimbabwe and also being a key player in the Sadc region thus having countries that feed into NRZ and NRZ feeds into in order to see regional economic growth other than our own economic growth.

HN: Can this vision be achieved given that NRZ is saddled with a US$144 million debt and owes workers more than US$68 million in outstanding salaries?

LM: It is going to be achieved definitely, but not over night because of issues such as huge debts chunk. We are looking at possible ways of restructuring the balance sheet; we want a solid balance sheet which will allow growth of the enterprise.

The restructuring of the balance sheet would possibly entail government assuming some of the debt especially the legacy debt, those loans and outstanding debts that are owed to government. We have already submitted a paper to government to ask that these debts be absorbed and our Ministry is engaging the Ministry of Finance to achieve that goal. This will make our balance sheet attractive for potential investors.

HN: There are talks that NRZ wants to privatise, may you kindly comment on that.

LM: Look, the NRZ is already privatised; we have Bulawayo-Beitbridge Rail (BBR) run by a private company. We are looking into privatising in terms of operations however privatising has to be in terms of the shareholder (government).

The post Broke NRZ seeks US$650m appeared first on The Zimbabwe Independent.

ZIMBABWE is considering charging rent to black subsistence farmers who settled on large-scale commercial farms confiscated mainly from white owners during state-backed invasions and may repossess land from those who don’t comply.

The southern African nation’s government is considering 99-year leases that will see rentals charged annually, it said in a document obtained by Bloomberg News and confirmed by Lands and Rural Settlements Minister Douglas Mombeshora. It also wants the new farmers to make one-time payments for capital improvements such as dams, barns, roads and buildings, it said. White growers held the best land in the country, a legacy of 90 years of colonial and white-only rule during which black producers were pushed into crowded and unfertile areas.

Between 3000 and 3500 farmers had their land taken from 2000 to 2010, while about 300 000 laborers lost their jobs, slashing exports of crops ranging from tobacco to roses and sending the country into a political and economic crisis that has yet to end. Poor grain harvests following the worst regional drought in three decades mean about 4,1 million Zimbabweans will rely on emergency food aid this year, or a third of the population, according to the United Nations’ World Food Programme.

“The value of the improvements of the leasehold will be purchased by the lessee, who may raise a mortgage to make the payment to government,” the document showed. The government could reclaim ownership of the farm if producers failure to pay rentals or for improvements, it said.

Repay Owners

Finance Minister Patrick Chinamasa said in April that black producers who have settled on the land may be asked to repay the former owners for their losses. The compensation plan is part of an effort by President Robert Mugabe’s government to restore relations with the International Monetary Fund. Since the nation fell into default to the Washington-based fund in 1999, it’s struggled to obtain finance to support an economy that is half the size it was 16 years ago.

“We are now waiting to submit it to the Cabinet Committee on legislation; we’ve finished our part,” Mombeshora said by phone about the proposal. “We are waiting for our slot.” The government has made payments to 240 white commercial farmers, he said in April.

Producers will have to submit government-approved, five-year business plans to be granted leases, the agreement said. Producers will be barred from forming partnerships or sub-letting land without government consent, which “shall not be reasonably withheld.”

Mugabe has repeatedly criticized black farmers for partnering with white farmers, mainly to farm tobacco.

Zimbabwe’s Commercial Farmers’ Union, which represents remaining white producers and the interests of those evicted from their farms and homes, didn’t answer calls.-Bloomberg

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ZIMBABWE National Liberation War Veterans Association (ZNLWVA) secretary-general, Victor Matemadanda and two other freedom fighters’ leaders who are facing charges of undermining President Robert Mugabe were granted bail by a local court.

Harare magistrate Vakai Chikwekwe has granted a US$300 bail apiece to Matemadanda, ZNLWVA vice-chairman, Headman Moyo and the association’s Harare executive member. This came a day after ZNLWVA spokesperson, Douglas Mahiya was released on US$300 bail on the same charges that are resulting from a communique issued by the war veterans organisation.

In the communique, the war veterans pushed for Mugabe ouster.-Staff Writer

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HUNDREDS of Zimbabweans on Wednesday marched in the streets of Harare to handover their petition against government’s plans to introduce bond notes.

The announcement of the introduction of bond notes has caused panic among Zimbabweans as it has revived memories of the years 2007 and 2008 which were marked by severe food shortages and hyperinflation.

The demonstrators led by activists going by hashtag names #Tajamuka and #ThisFlag managed to hand over their petition at the ministry of finance and for the first time there was no police interference before the petition was handed in.

Before handing over the petition, some of the speakers including Partson Dzamara, said Zimbabweans are demonstrating against the bond notes due to fear of losing their savings as was the case in 2008.

Another speaker said the Zimbabwean government has resorted to introducing the bond notes because it is now broke and cannot pay its workers.

“This government wants to replace our hard earned United States dollars with these useless bond notes, so we will not allow that to happen,” said one of the speakers.

The demonstrators held placards and wore T-Shirts denouncing President Robert Mugabe and his government.

Singing revolutionary songs the demonstrators called on President Mugabe to resign immediately accusing him of presiding over a corrupt government that has failed to find solutions to the plight of Zimbabweans.

It is not only the ordinary Zimbabweans that have not welcomed this development but corporates and economic analysts have also expressed skepticism on the issue.

Some of the prominent people who have spoken on the bond notes issue include former vice president Joice Mujuru who likened the bond notes to “useless toilet paper” and has since approached the courts to bar the government from issuing the bond notes saying the move is illegal and against the will of the people.

The government however seem unperturbed by the anti-bond notes calls with the Reserve Bank of Zimbabwe (RBZ) saying it is “well on track” to unveil the bond notes in October, despite public resistance.

Last week, central bank deputy governor Kupukile Mlambo told the Daily News that despite the public’s concerns, the RBZ was geared to introduce the notes.

“October is still the introduction date… the process is not just printing, it also involves design, so we are well on track,” he was quoted saying.-Fin24

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SINCE December 1987 when President Robert Mugabe masterminded constitutional amendments to create the imperial executive presidency, he has reduced the country to some form of theatre by appointing individuals more suited to the role of stock characters in circuses or tragi-comedies of British playwright William Shakespeare rather than vice-presidents.

Herbert Moyo

President Robert Mugabe arrives at the Zanu PF headquarters in Harare recently

While former vice-president Joshua Nkomo, Joice Mujuru and John Nkomo were generally held in high regard, Simon Muzenda was considered a rusticated country bumpkin whose unsophisticated disposition could not be improved even by his high office.

Although this might sound rather harsh, Muzenda was the butt of many jokes for that reason, if no other.

However, none of Mugabe’s past and current vice presidents have come close to Vice-President Phelekezela Mphoko who has made Muzenda’s comical deportment look like child’s play.

Since his appointment in December 2014, Mphoko has lurched from one controversy to another, displaying an approach and attitude that not only undermines his stature but also belittles the second highest office of the land.

Hardly a month after controversially storming Avondale Police Station in Harare to demand the release of senior Zimbabwe National Roads Administration (Zinara) officials who had been arrested on fraud allegations saying there were “his boys”, he was at it again in Bulawayo last week where he berated residents for their “gullible behaviour” in consistently voting for the opposition.

“People of Bulawayo fall prey to anyone who comes here to deceive them. They forget that this is a royal city.
Don’t be gullible to non-traceable parties,” he told his audience at Njube township of Bulawayo last week.

“Any politician who wants to launch his or her political party has a tendency of coming to Bulawayo first. We’ve the likes of Simba Makoni, Tendai Biti, Morgan Tsvangirai, Acie Lumumba and others who have turned this city into their playground because they know you’re easily carried away. In fact, they think you cannot do anything on your own.”

Mphoko made the remarks while donating 2 500-day-old chicks to the entire Njube community — a programme which according to the state media is “anchored on the country’s economic blueprint, ZimAsset, which seeks to empower communities through utilising local resources.”

Needless to say, as observed by one reader, the remarks as well the donation of day-old chicks are not in keeping with the status and office of vice-president.

Last week’s events were the latest in a series of endless controversies involving the vice-president.

Last month, Zinara acting chief executive officer Engineer Moses Juma and non-executive director Davison Norupiri were arrested on allegations of defrauding the parastatal of US$1,3 million.

However, up to now they have not had their day in court thanks to Mphoko who personally drove to the police station to secure their release.

He was prepared for a fight too, menacingly taking off his jacket as he prepared to pounce on police officers who had refused to release the duo.

The combative Mphoko lashed out warning: “I’m not a vice-president of a co-operative or burial society”.
A scuffle ensued and one of his overzealous aides is said to have assaulted a police officer who was defying the order.

Those who know Mphoko say he has not changed a bit since the days of the liberation struggle, despite him being trained in diplomatic etiquette.

While still an ambassador in South Africa, Mphoko reportedly said to have rolled up his shirt sleeves in readiness to pummel a Foreign Affairs senior official over an undisclosed misunderstanding.

The aggrieved official is said to have protested to Mugabe over Mphoko’s indecorous conduct but was told “to get used to the ambassador as he was like that even in Mozambique during the liberation struggle”.

And on the occasions when he is not displaying vanity and crude threats, Mphoko can be a schoolmaster admonishing “wayward” pupils as shown by last week’s attacks on Bulawayo residents.

Bulawayo was also the scene of Mphoko’s first rally in the aftermath of his appointment in December 2014.

At the time the then unknown vice- president whom most Zimbabweans could not have picked out on an identity parade introduced himself to the stunned audience with controversial pronouncements on subjects ranging from disabled people to populist rhetoric bordering on regionalism and secession. Addressing mostly party supporters in January 2015, Mphoko intoned: “I have got my own views regarding vending where you find an able-bodied man seated selling tomatoes. There are better things to do for someone who is fit except for those who are indisposed and physically-challenged.”

As with all other theatrical performances, Mphoko’s address had the perfect backdrop of irony in that he was flanked on the high table by Zanu PF’s secretary for the disabled Joshua Malinga — a man who has fought for many decades against stigma and for the improvement of the welfare of the disabled.

Mphoko further stated: “You should wake up and see what you can do for a living. We cannot tolerate a man who is fit sitting down and selling tomatoes. No, let us do something better.”

He also said control of the roads, water and the power station should be handed to the Bulawayo City Council to stimulate development in the marginalised city.

“Bulawayo Power Station must come back to Bulawayo. It should not be run by Zesa. Zesa was not even there when it was constructed. Zesa must only be there for national programmes, but not in my home. Bulawayo is a standalone city like Harare. And do not give our roads to Zinara; they must be given back to the Bulawayo City Council,” he said.
It is a long list of controversial outbursts, including the February declaration in Chiweshe that Mugabe need not be succeeded by a Karanga — an apparent jab at his counterpart Emmerson Mnangagwa.

The vice-president has also courted controversy over his refusal to vacate the expensive presidential suite at Rainbow Towers Hotel where he has arrogantly claimed his stay is justified on account of his contribution to the independence struggle as well as the mendacious claim that the facility is government-owned. There are several private shareholders in the stock exchange-listed hotel.

Besides, Mphoko is brokering a deal which could see Zesa accessing a costly US$350 million loan from Botswana’s Capital Management Africa (CMA) at a usurious rate of 20% per annum interest rate. Mphoko’s son Siqokoqela is a CMA shareholder.

It remains to be seen what scandal Mphoko will be next involved in. What appears certain is that there has been no one like him next to Mugabe, at least so far.

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PRESIDENT Robert Mugabe is mulling a fresh cabinet reshuffle, which government and party insiders say will be informed by the need to respond to growing corruption and incompetence among his ministers, as well as calming stormy relations within the party torn asunder by factionalism.

Wongai Zhangazha

Mugabe, who is under pressure from war veterans calling on him to step down amid rising social unrest, intends to send a clear warning that those who are not loyal to him will not be tolerated.

The Generation 40 (G40) faction, whose major strength has been First Lady Grace Mugabe’s proximity to power, this week gained ground against a faction led by Vice-President Emmerson Mnangagwa following the expulsion from Zanu PF of four war veteran leaders and five other party members loyal to the vice-president.

The G40 faction has been pushing for yet another cabinet reshuffle to strengthen its position in the succession race and decimate the Mnangagwa faction.

If Mugabe buckles under pressure and reshuffles his cabinet, as is widely expected, it will be the fourth time he has done so since controversially winning the 2013 elections.

In 2014, he reshuffled his cabinet after axing former vice-president Joice Mujuru and her high-profile allies over unsubstantiated allegations of plotting his ouster and assassination.

According to one senior government official in the Office of the President and Cabinet, Mnangagwa could lose his Justice portfolio although he will retain the vice-presidency.

Mnangagwa has of late been under fire for plotting to oust Mugabe, with a group of war veterans linked to the G40 faction imploring the president to boot him out.

A top government official said Information, Media and Broadcasting Services minister, Christopher Mushohwe could be moved from the ministry.

“Mushohwe is not competently and effectively managing the Ministry of Information. Mugabe feels that Mushohwe has failed to defend government policies and positions where necessary. The state media is now factionally aligned and seems to be sympathising with Mnangagwa,” the government official said.

“Mushohwe was accused of failing to defend his colleagues when they are attacked in the media. In a recent cabinet meeting, Mushohwe was accused by Jonathan Moyo (Higher Education minister) of failing to defend Energy minister Samuel Undenge, who has been under attack in the media.”

Undenge has been under fire after being implicated in Zesa tender scandals, where his relationship with convicted fraudster Wicknell Chivayo has come under the spotlight.

“However, Mushohwe replied that in some cases it was government ministers leaking information, a defence that was rejected by his colleagues. The feeling is that Mushohwe is overridden by his permanent secretary George Charamba who seems to be running the show. For those reasons he might be moved and replaced by Moyo. Moyo is the total opposite of Mushohwe,” the top government official said.

The source said although Mugabe liked what Moyo was doing in the Ministry of Higher and Tertiary Education where he has implemented the Science, Technology, Engineering and Mathematics (Stem) initiative, he thinks he would be more effective defending government policies.

Mines minister Walter Chidhakwa’s job is also hanging on his job by a thread as Mugabe is unhappy with the measly revenues from diamond sales.

“The feeling is that Chidhakwa has done a very bad job and the consolidation of diamond mines is a fiasco. Companies under his ministry are ridden with allegations of corruption. There is a feeling that the poor performance of Zimbabwe Consolidated Diamond Company (ZCDC) and the firing of top executives at the company was done without adequate consultation,” another government official said.

“Before ZCDC was formed, there were no adequate consultations and hence litigation. Due to all the combined factors, production has plummeted and now the company is contributing paltry figures to the fiscus. At the highest level of production in Marange, Mbada Diamonds used to give government about US$15 million per week, but now the contribution to Treasury has plunged to meagre amounts as low as US$200 000 per month.”

Mugabe has reportedly described the situation as “pathetic”.

“So on the basis of competence, Chidhakwa might not come back unless Mugabe overlooks his poor record and sympathises with him as a relative,” said the source.

Undenge is also in the firing line for corruption and incompetence.

“Although there is a steady supply of electricity, it is understood that this is not because of Undenge, but a huge drop in demand due to company closures, which has reduced consumption. Mugabe is not happy with the corruption allegations that have been raised against the minister,” a source said.

“Sydney Sekeramayi (Minister of Defence) is also under the spotlight although he is a seasoned minister, who has served in different portfolios. His time in the Ministry of Defence might be coming to an end because of his failure to competently handle war veterans’ issues. Sekeremayi (who is also Zanu PF secretary for war veterans) has been found wanting when it comes to controlling them. War Veterans minister Tshinga Dube is also under fire, as he also has been struggling to manage war veterans,” the top government official said.

Although the war veterans do not fall under Sekeramayi’s ministry, Mugabe recently demanded that the army should rein in the war veterans since they fall under the Defence Act.

Indigenisation minister Patrick Zhuwao and Tourism minister Walter Mzembi could also go for different reasons. Rural Development minister Abednigo Ncube has been mediocre quiet.
Zhuwao is on the ropes for failing to interpret the indigenisation laws and threatening to close companies.

Those who are seen to be performing well are Transport minister Joram Gumbo, Saviour Kasukuwere (Local Government), Ignatius Chombo (Home Affairs), Moyo, Prisca Mupfumira (Labour) and Patrick Chinamasa (Finance).

However, Chinamasa, who has been virtually fighting a lone battle in government to re-engage the West through the debt clearance strategy with IFIs while attempting to attract investors and secure fresh funding, has been under serious scrutiny.

The source said Agriculture minister Joseph Made is likely to stay put and an anticipated US$5 billion funding from China is a major boost to his ministry. Other ministers likely to remain include Oppah Muchinguri (Environment), Douglas Mombeshora (Lands), Kembo Mohadi (State Security) and Obert Mpofu (Macro-Economic Planning).

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FEARS of explosive hostilities between the army and police, fuelled by Zanu PF’s succession-driven factionalism and infighting cutting across the security sector and other critical institutions of government, are mounting amid clear indications that the two pillars of state stability are fighting a hot cold war.

Elias Mambo

The Zimbabwe Independent understands from top military sources this destabilising situation has created growing suspicious and uncertainties within the security sector as shown by the Gushungo Dairy bombing saga in January that laid bare divisions between the army and the police.

The arrest of war veteran leaders over a sensational Mgagao-like communiqué demanding President Robert Mugabe should quit as he has failed and ruined the nation, as well as people’s lives, also exposed their mutual hostilities.

Since the Gushungo bombing affair — which has claimed the scalp of Prosecutor-General Johannes Tomana who sided with the military against the police — relations between armed forces and law enforcement agency bosses have been deteriorating.

Officer Commanding the Criminal Investigations Department’s law and order section Assistant Commissioner Crispen Makedenge on Friday last week made stunning revelations, suggesting battle lines between the army and police have been drawn over war veterans’ arrest.

This claim emanated from his affidavit which was presented in court by prosecutor Tapiwa Kasema as the state unsuccessfully pushed for war veterans’ spokesperson Douglas Mahiya, now out, to be denied bail.

According to the affidavit, in possession of the Independent, Makedenge warned: “If (Mahiya is) granted bail there is a likelihood of clashes between his sympathisers and those against his utterances.”

Pressed by lawyer Harrison Nkomo on who Mahiya’s sympathisers were, Kusema revealed the frosty relationship between the police and military.

“The war veterans fall under the Defence Act and they have always worked with the military,” he said. “If Mahiya is released then there will be clashes between the military and the police.”

Nkomo further probed the prosecutor to substantiate his claims but he could not provide the evidence, although the damage was already done.

Mahiya was arrested on Wednesday last week as part of a crackdown on war veterans following the release of their communiqué which described Mugabe as a manipulative, self-centred and failed dictator who has betrayed the ideals of the liberation struggle while destroying the economy.

The acrimonious relationship between the military and the police also filtered through security meetings in the aftermath of the stinging communique. The police’s narrative, backed by the Central Intelligence Organisation (CIO) reports, and military’s story over the origins of the document differed.

Police and CIO insist the war vets produced the communiqué which correctly reflected their position as shown by intelligence reports, while the army claims it was the product of a Fifth Column, a subversive force.

Defence Minister Sydney Sekeramayi and army chiefs have tried to push the subversive infiltration line, while police insist the war vets were behind the communiqué.

As a result divisions between the army and police have been playing out in public. The run-ins between the army and police, as well as the intelligence service, largely revolve around Mugabe’s succession.

The army has been backing war veterans who have stood firmly in support of Vice-President Emmerson Mnangagwa’s presidential bid, although last weekend he denied it publicly, throwing the ex-combatants under the bus.

The Mnangagwa faction is battling the Grace Mugabe-fronted G40 camp for the control of the heart and soul of Zanu PF mainly to influence succession and gain access to public resources.

While Zimbabwe Defence Forces commander General Constantine Chiwenga is said to be backing Mnangagwa, Police Commissioner-General Augustine Chihuri and CIO Director-General retired Major-General Happyton Bonyongwe are seen as sympathetic to G40 by default. This is despite the fact that Zanu PF factional configuration dynamics keep on shifting and changing as the situation evolves.

Chihuri and Bonyongwe were aligned to the late retired army commander General Solomon Mujuru and his wife, ex-vice-president Joice Mujuru, expelled from Zanu PF in the aftermath of the acrimonious December 2014 congress.

Apart from tearing the ruling party asunder, this has resulted in deep divisions within the security establishment as some senior army commanders are said to be mainly behind Mnangagwa.

Mugabe accused security service chiefs of meddling in his succession politics during Zanu PF’s annual conference in Victoria Falls last year. This further widened the rift between him and Chiwenga whom he is said to be planning to remove anytime.

Mugabe last weekend travelled to Equatorial Guinea with Chiwenga in a move seen as a containment strategy rather than rapprochement.

Tensions between Mugabe and some army commanders also heightened in February after his wife Grace accused them of trying to bomb their family dairy in Mazowe and plotting to kill her son Bellarmine Chatunga to strike fear in their hearts and force them out.

The “bombing” affair around the Mugabe’s business empire sucked in the military with two soldiers Solomon Makumbe and Borman Ngwenya, as well as retired military intelligence officer Silas Pfupa arrested and arraigned on banditry and terrorism charges, among other charges. Makumbe and Pfupa became state witnesses on some charges, but are currently on bail on others.

Ngwenya has been acquitted, although the state has appealed. Little known Owen Kuchata, Zimbabwe People’s Front political party leader, was jailed for nine years.

The case resulted in Tomana, who sided with the army, being arrested by the police who rejected the military’s claim that their officers were on an official spying mission when they appeared to be helping Kuchata to attack Mugabe’s property instead of being accomplices.

Tomana has since been suspended and is now under a tribunal investigation for alleged abuse of office. It is said Mugabe was infuriated by his actions and fiercely lashed out at him for initially ordering the release of the soldiers in the convoluted case full of conspiracy and counter-conspiracy theories.

Following the war veterans’ meeting in Harare on July 21 which culminated in the release of the contentious communique, Mugabe summoned Mnangagwa and Phelekezela Mphoko, co-vice-president, Defence minister Sydney Sekeramayi, State Security minister Kembo Mohadi, Home Affairs minister Ignatious Chombo, Chiwenga, Chihuri and Bonyongwe to a crisis meeting at State House on July 22.

Sources said Mphoko accused defence chiefs of “selling out” by allowing war veterans to attack Mugabe, their commander-in-chief, while police and intelligence bosses dismissed the army’s claim of a Fifth Column being behind the war veterans’ plot.

The Independent understands Manicaland provincial affairs minister Mandi Chimene last week on Wednesday just before the Mugabe solidarity meeting with war veterans at the Zanu PF headquarters in Harare accused the military and its bosses of sponsoring the war veterans in their plot to oust Mugabe.

This is the charge which Mugabe was referring to when he said at the party headquarters rally that some of the things which had emerged at the heated meeting preceding the gathering could not be discussed in public.

The war veterans’ move to openly canvass for Mnangagwa has, however, backfired as their preferred Mugabe successor now finds himself cornered like a rat, while their entire executive has been sacked from Zanu PF. Four war veteran leaders were expelled from the ruling party at its politburo meeting on Wednesday. Their chairman and former minister Chris Mutsvangwa was kicked out before them.

In February, the former freedom fighters were involved in running battles with police who used tear gas and water cannons to disperse them as they prepared to protest against Grace for attacking their leadership and the military at her Chiweshe rally the same month. Grace had previously attacked war veterans at her other rallies, fuelling mutual tensions and hostilities.

The crushing of the war veterans’ protests by the police forced Mugabe to address the nation as an emergency in February and to the convening of a crisis indaba in Harare in early April. The meeting, however, failed to resolve volatile differences between Mugabe and war veterans loyal to Mnangagwa.

Mugabe recently lambasted the war veteran leaders describing them as “dissidents” while threatening to crush them before they hit back with their communiqué. This led to the current backlash by Mugabe; the arrest of war veteran leaders and their expulsion from Zanu PF, leaving the battle lines clearly drawn over the bitter succession fight.

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THE Generation 40 (G40) faction of Zanu PF, which has coalesced around First Lady Grace Mugabe, has intensified its efforts to derail Vice-President Emmerson Mnangagwa’s ascendency to the presidency by launching yet another spirited attack on the beleaguered VP to decimate his support base as the succession battle to replace President Robert Mugabe rages on.

Elias Mambo

Party insiders revealed the G40 faction is using a two-pronged approach to derail Mnangagwa — pushing for expulsions of his backers from Zanu PF structures as well as targetting those perceived to be his allies in state institutions.

This comes against the backdrop of the expulsion of four leaders of the Zimbabwe National Liberation War Veterans Association from Zanu PF this week for allegedly insulting Mugabe. The four, Victor Matemadanda (secretary-general), Douglas Mahiya (spokesperson), Francis Nhando (political commissar) and Headman Moyo (vice-chairperson) were expelled on Wednesday by the Zanu PF politburo together with five party members, including former deputy minister Munacho Mutezo.

They join ZNLWVA chairperson Christopher Mutsvangwa who was expelled from the party last month.

“The strategy is to isolate Mnangagwa by expelling those who are loyal to him,” a Zanu PF official said adding: “Zanu PF and Mugabe cannot afford to do without Mnangagwa at the moment because this will weaken the party ahead of 2018 elections given that the expulsion of (ex-VP Joice) Mujuru and her allies had a heavy toll on the party.”

The official added: “The strategy also involves pushing out his symphathisers in state institutions, like the army. The idea is to retain him in the position, but without the key support that he enjoys. This means dealing with his support structure at both party and government levels.”

As part of the grand plan the G40 camp intends to descend on provincial officials supporting Mnangagwa, especially in Midlands and Masvingo.

The G40 faction has for a while been targeting Mnangagwa’s right hand man July Moyo, who is also the Zanu PF deputy secretary for administration.

Also in the firing line are Midlands provincial members such as Justice Mayor Wadyajena (youth secretary for administration and Owen Mudha Ncube (secretary for security) whose disciplinary cases are still to be heard by the national disciplinary committee.

Mnangagwa’s key pillars in state institutions are also being targetted.

For months, Mugabe has been contemplating firing Zimbabwe Defence Forces (ZDF) commander General Constantine Chiwenga, widely seen as a vital cog in Mnangagwa’s plans.

Prosecutor-General Johannes Tomana, a key Mnangagwa ally, is under suspension and is likely to get fired. Another Mnangagwa ally Munyaradzi Kereke has been jailed for rape for 10 years.

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GOVERNMENT is seeking US$5 billion funding from China to revive the once vibrant agricultural sector; fund the construction of a new parliament as well as to enable it to roll out a massive housing project; and kick-start some infrastructural projects.

By Herbert Moyo

Local Government minister Saviour Kasukuwere

A ministerial delegation comprising of Local Government minister Saviour Kasukuwere, Macro-Economic Planning and Investment minister Obert Mpofu and Agriculture, Mechanisation and Irrigation Development minister Joseph Made spent last week negotiating the deal with the Chinese, as the cash-strapped government continues its desperate search for funding for various projects aimed at stimulating economic recovery.

In the aftermath of Zanu PF’s 2013 election victory, the economy has been on a downward trajectory amid a severe liquidity crunch, company closures and job losses which have led to social protests and demands for President Robert Mugabe to step down.

However, according to highly-placed government sources there could be some respite after the Asian economic giant released US$46 million for the construction of a new parliament building in Mt Hampden and pledged to fund housing projects and agricultural production, among other projects.

“Work on the new parliament building is starting now and we expect to finish its construction before the end of 2017,” a senior government official said this week.

According to government sources, Zimbabwe was promised US$1 billion for housing developments in urban centres across the country.

The funds will enable the Zanu PF government to roll out an ambitious housing programme targeting youths and low-income earners, among other beneficiaries, as a campaign tool ahead of the 2018 general elections.

The government is in the process of acquiring farms in peri-urban areas to kick-start projects while also parceling out stands along partisan lines.

Government sources also revealed that the Chinese had agreed to fund agriculture on condition that it will benefit from the produce.

“They will also soon be releasing funding for various projects, including agriculture,” said one source, adding that the ministers were briefing Mugabe this week and will next week present to cabinet the outcome of their visit ahead of an official announcement of the agreements.

“On the agriculture side, China will provide funds for contract farmers to grow tobacco, flowers, cotton, soya beans and produce beef, among other products,” a source said. “That will result in the doubling of tobacco production next year onwards. We (government) will be re-organising farming associations and strengthening contract farming to supply China, which has become the biggest destination for our tobacco.”

Almost 200 million kilogrammes of tobacco was produced in the last farming season.

The sources said the “tobacco contract farming model will be replicated across other sectors of agriculture to meet China’s beef, pork, lamb and mutton, flowers, soya beans and citrus requirements”.

“In the past few weeks, the Chinese agreed to release over US$1,1 billion for the construction of the Kunzvi Dam and new parliament building in Mt Hampden. Of that amount, US$400 million is for the NetOne-Huawei project,” the source said.

NetOne is using the funds to expand its network to increase its subscriber base as well as provide faster broadband internet connectivity.

Mpofu, who signed the agreement for the parliament funds, said more agreements would be signed with China in agriculture and housing under the Economic and Technical Co-operation Agreement.

“We have submitted priority projects that we feel are key under our economic revival, that is support for agriculture as well as housing. That is why ministers Made and Kasukuwere are also present to beef up our delegation in arguing our case for the support,” Mpofu told the state media last week.

In June, government sent a delegation to China in June to discuss a deal for the construction and incorporation of Kunzvi Dam into Harare’s water supply system as well as the satellite towns of Chitungwiza, Norton and Ruwa. This followed a January announcement by Environment minister Oppah Muchinguri that the Zimbabwe National Water Authority and Chinese firm Sino Hydro were finalising an agreement for the construction of the dam on a build-operate-transfer arrangement.

Since 2014, senior government officials, including Mugabe, have gone to China in search of billions of dollars in rescue packages to revive the moribund economy. Last December, Chinese President Xi Jinping made a two-day stop-over in the country on his way to the China-Africa summit in South Africa — an event that was loudly trumpeted by government as the harbinger of the implementation of so-called mega-deals signed by the two countries.

Although several memorandums of understandings have been signed, China has been reluctant to release funds in the absence of a clear succession plan, concrete reforms in parastatals and state enterprises to root out corruption, mismanagement and improve efficiency and ensure good corporate governance.

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THE Zimbabwe Anti-Corruption Commission (Zacc) says it will continue investigating cases of corruption, including those involving high-profile persons, despite interference by government officials.

By Wongai Zhangazha

In an interview this week, Zacc principal public relations officer Phyllis Chikundura said the anti-corruption body would ensure there are no sacred cows in the fight against graft, although she also revealed Zacc was facing numerous challenges including staff and funding shortages, which were hindering its work.

Despite being an independent constitutional body, the government has been interfering in Zacc’s work.

In June, President Robert Mugabe’s spokesperson George Charamba accused Zacc officials of behaving like rattlesnakes after investigators raided several government departments, parastatals and local authorities as part of a wide corruption investigation.

Zacc officials also demanded documents from several permanent secretaries as part of their probe.

Charamba’s statements were made despite the fact that Zacc had secured search warrants from the courts. He was particularly angry that Zacc was investigating the Zimbabwe Broadcasting Corporation bosses who allegedly unprocedurally acquired 35 vehicles worth US$900 000.

Three weeks ago Vice-President Phelekezela Mphoko stormed Avondale Police Station in Harare to free Zimbabwe National Roads Administration (Zinara) acting chief executive officer Engineer Moses Juma and non-executive director Davison Norupiri, who had been arrested by Zacc investigators on allegations of defrauding the parastatal of US$1,3 million.

The duo has not appeared in court since then.

“As Zacc, the issue of the so-called untouchables is just a perception and we really dismiss that perception. There would be no sacred cows in the execution of our mandate except those covered by the constitution. Zacc was given powers to investigate and expose all cases of corruption regardless of one’s status in society,” Chikundura said.

“Zacc goes after any grand corruption and grand corruption is not the preserve of a specific class of people in society. The seriousness of a corruption case is not determined by a big name or small names, but by the cost to society.”

Without disclosing details, she said Zacc is investigating a number of cases, some of which involve high-profile persons. She said some of the cases were new while others were carried over from the previous commission.

Chikundura said corruption cases were very high in Zimbabwe, which she said was a cause of concern.

“While statistics are there for public perusal, to disclose the statistics would be pre-empting and jeopardising investigations, but corruption is rampant in all sectors of the economy and all are vulnerable to corruption,” she said.

Chikundura said Zacc had funding challenges, which were hampering the body from executing its mandate.
“Just like in all organisations in Zimbabwe resources may never be enough. Zacc currently receives funding from the Consolidated Revenue Fund. The funds are greatly inadequate for our operations. However, efforts are currently underway to engage supporting and co-operating partners to augment the resources from Treasury,” she said.

Chikundura said Zacc would be more effective if it decentralises its operations to all its provinces in the country. She said Zacc also needed massive staff recruitment since the organisation is understaffed.

In addition, Zacc needs “resources to use and maintain the vehicle fleet which Zacc currently has; fuel to conduct investigations around the country; conduct awareness programmes like exhibitions baseline survey and system audits, among other activities”. The anti-corruption body also needs an office in Harare’s central business district, vehicles, office furniture and computers.

Commenting on findings by Transparency International’s 2015 Corruption Index where Zimbabwe is ranked 150/175 countries, Chikundura said: “Zacc cannot accept nor deny the findings and neither does Zacc have control over the research process, but what we know as Zacc is that the levels of corruption are very high to levels that do not promote investment in the country.

“However, Zacc has prioritised the conducting of a national baseline survey. The ZimAsset economic blueprint has advocated for ‘zero tolerance to corruption’. To that end Zacc is of the view that the undertaking of a nationwide survey will provide an opportunity for citizens of Zimbabwe to ‘speak first’ and propose homegrown solutions and strategies in the fight against corruption.”

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ZIMBABWE National Roads Administration (Zinara), acting chief executive officer Engineer Moses Juma and non-executive director Davison Norupiri, who were unprocedurally released from police custody three weeks ago by Vice-President Phelekezela Mphoko after being arrested for allegedly defrauding the parastatal of US$1,3 million, appear to be off the hook.

BY HERBERT MOYO

This comes amid indications that President Robert Mugabe is reluctant to have the matter pursued.

Zinara is chaired by the president’s nephew Albert Mugabe, while Juma and Norupiri are close associates of the vice-president and First Lady Grace.

Mphoko, who was Acting President at the time, drove to Avondale Police Station in Harare and personally secured the release of the incarcerated duo on the grounds that they were his “boys”.

Government and police sources said Mphoko was so angry when he arrived at the police station that he took off his jacket and threatened to assault police officers after they refused to release the duo.

They had been arrested by Zimbabwe Anti-corruption Commission (Zacc) investigators. They have not appeared in court since being released. Asked if Zacc was still pursuing the matter and whether they would appear in court, the anti-corruption body’s principal public relations officer Phyllis Chikundura was none-committal.

“As of now I don’t know because there were released by a higher office. There are currently investigations underway,” Chikundura said in an interview.

Government officials told the Zimbabwe Independent that officials from the Office of the President and Cabinet (OPC) visited Zacc offices last week to gather details on the corruption case.

“Officers from the OPC questioned Zacc investigative officers, claiming the President wanted details on the corruption case, including how Zacc had conducted investigations leading to the arrest of the officials and their unprocedural release,” said one source. “They also wanted to know what evidence Zacc investigators had gathered.

The President, however, appears reluctant to have the matter pursued further, so it’s likely to die a natural death.”

Juma and Norupiri, as reported by the Independent last week, have been financing Grace and Mphoko’s political activities using Zinara funds.

Norupiri, who is also Zimbabwe National Chamber of Commerce (ZNCC) chairperson, played a key role in ensuring that Grace officiates as guest of honour at ZNCC’s national dinner and business awards in Victoria Falls last month.

Zinara has been sourcing goods, which Mphoko has subsequently donated to various constituencies in Bulawayo and Matabeleland provinces in a move aimed at propelling his political image.

In May, Juma accompanied Mphoko and Bulawayo Provincial Affairs minister Eunice Sandi-Moyo to the vice-president’s former primary school, Mzilikazi in Bulawayo, where he donated computers sourced by Zinara.

“I went out and sourced the computers which I was given by Zinara. The acting chief executive officer, Moses Juma, is here today to witness that I don’t divert the gadgets,” Mphoko revealed.

Two weeks later, Grace and Mphoko teamed up to hand over 30 000 bricks and 300 bags of cement to Mpopoma High School, also in Bulawayo, for the construction of an Advanced Level classroom block.

The consignment was sourced by Zinara and at the handover ceremony, Mphoko commended the parastatal for assisting Grace with the donation.

“I want to thank the First Lady for taking note of the request by Mpopoma High School. I also want to thank Zinara for assisting the First Lady in fulfilling the wish of the school to commence their construction projects,” said Mphoko at the function.

Government officials also said Zinara has in the past provided large quantities of fuel to Grace and Mphoko for travels to various meetings held countrywide.

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ZIMBABWE’S government is working on measures to avoid delays in salary payments to soldiers, police officers and other public employees, President Robert Mugabe said on Monday.

The southern African country has struggled to pay public workers on time as it struggles with its worst financial squeeze since it dumped its hyperinflation-hit currency in 2009 and adopted the United States dollar.

Monthly salaries for army soldiers, police officers, doctors, nurses, teachers and other public employees have been delayed for weeks over the past few months.

This led to strikes in July that closed businesses, government offices, schools and hospitals – the most significant popular defiance of the long-ruling, 92-year-old Mugabe in a decade.

“Measures to avoid delays in the payment of salaries for civil servants are being developed,” Mugabe said in his annual National Heroes Day speech honouring guerrillas who died in Zimbabwe’s 1970s war of independence. He gave no details.

Continued salary delays could stoke political tensions in Zimbabwe, which has been plagued by drought, a drop in mineral prices and chronic cash shortages – all factors behind unrest against Mugabe, the only leader independent Zimbabwe has known.

At the height of the protests, war veterans turned on their long-time patron Mugabe, describing him as a dictator in a jolting rebuke underlining mounting anger over economic woes.

Mugabe dismissed a call from veterans for his resignation, saying he was in power by popular vote and accusing critics of plotting his ouster in league with long time critics in the West.-Fin24

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…Chivayo awarded another dodgy deal

CORRUPTION-RIDDEN Zimbabwe Electricity Supply Authority (Zesa) is embroiled in a fresh tender scandal in which convicted fraudster Wicknell Chivayo was awarded another US$113 million deal on top his several others by the company’s subsidiary, Zimbabwe Power Company (ZPC), despite lacking capacity and resources to implement the project.

By Herbert Moyo

Wicknell Chivayo

Documents seen by the Zimbabwe Independent, which of late has exposed a series of corruption scandals as per tradition, this week show Chivayo — already involved in other dodgy Zesa deals — was last year awarded a tender to refurbish Munyati Power Station despite that neither his company nor his Indian partners, Jaguar Overseas Limited (JOL), had the capacity and resources to undertake the power development scheme.

Chivayo’s company Intratrek, which has no previous experience or proven record in power projects, was awarded the Munyati contract on November 12 2015 to rehabilitate and modernise the 61-year-old thermal energy power plant to bring its generated capacity to 100 megawatts at a cost of US$113 182 627.

This is in addition to the US$200 million 100-megawatt solar power plant in Gwanda, Matabeleland South province, in which Chivayo was paid US$5 million without a required bank guarantee.

Zesa is currently reeling from a number of corrupt deals in which the country’s energy projects were given to shady businessmen with criminal records, ranging from fraud to drug trafficking.

The deals were inflated by more than US$500 million, raising suspicions Zesa executives and senior government officials, including ministers, are benefitting from the shady contracts which authorities are reluctant to investigate.

Chivayo is politically well-connected and has links with President Robert Mugabe’s family.

Documents show that just like Intratrek, Chivayo’s Indian partner JOL has no experience in power projects as it is “still new to power plants”, according to a due diligence report done by ZPC from February 21 to 24 this year.

To make matters worse, it has also emerged JOL has done some shoddy work or was blacklisted in several countries, including Zambia, Democratic Republic of Congo (DRC), Swaziland, Ethiopia and India, where it is facing litigation.

ZPC sent two teams to India to conduct some due diligence, one to examine the JOL/Triveni Consortium on technical matters and the other focusing on financial and legal issues.

The ZPC technical team comprised group leader Tichaona Nyandoro (technical compliance manager), Fannie Mavhondo (general plant manager), Fungai Sabvukutwa (section engineer maintenance), Victor Kufahakutane (section engineer operations) and Eric Mvududu (projects engineer).

Sanjay Gupta, a project engineer at Wapcos Limited, an Indian company which has previously worked with JOL on other projects, was also part of the team. The finance and legal team had ZPC finance director Muedzo Nebarwe and assistant company secretary Respina Zinyanduko.

Strangely, though, the due diligence was only carried out this year — three months after the deal was signed. The tender was awarded in November 2015. According to the due diligence report seen by the Independent, it was found that “JOL itself was not financially sound.”

“Its balance sheet as at 31/03/15 was worth US$88 million of which US$53 million were creditors and its capacity to secure funding and to undertake a project of this magnitude was therefore questionable,” reads part of the report titled Jaguar Overseas Limited Report. “The company also had huge overdrafts in two out of three of its bank accounts.”

The report further says although JOL’s Indian partner Triveni Turbines had “good technical standing, its balance sheet raised doubts on the adequacy of the assets to satisfy the potential funders.”

Triveni was found to have a balance sheet of US$85 million of which US$43 million were creditors. Therefore, “the combined net worth of JOL/Triveni Consortium was US$77 million which is less than the project value for Munyati Repowering Project (US$113 million)”

“Based on the findings, it was noted that it will be highly risky to engage JOL and the committee recommends that it would not be prudent to enter into another contract with JOL,” the report says.

“JOL alone neither has the experience of constructing power plants nor the financial capacity to absorb the high risk that comes with EPC contracts. The JOL/Triveni Consortium’s combined balance sheet which has a net worth of US$77 million is less than the value of the Munyati Project (US$113 million) and this raises doubt if this would be adequate to secure funding from potential financiers.”

According to ZPC, potential funders like Afrexim Bank and BancABC had after conducting their own due diligence on JOL committed to jointly fund only 15% of the total EPC cost.

The ZPC due diligence report also shows JOL has a history of shoddy work in Zambia, DRC, Swaziland, Ethiopia and India.

“It was also noted through internet (google) search that in most of these countries, Jaguar either did shoddy jobs or got blacklisted. There will be need to confirm on the ground the actual position of these projects from these countries,” it says.

The report also says JOL had concealed information that it was facing litigation in the courts in India along with one of its subsidiaries.

“JOL advised that there was none (litigation). However, on perusing their financial statements for 2015, it was noted that there was a case in which Jaguar Overseas and one of its subsidiaries was being sued in the High Court by M/s Jindal Drilling and Industries Limited… The value of the claim was not captured in the financial statements,” the report states.

JOL insisted that the case was finalised and closed after being quizzed further on the matter.

Munyati is one in a series of tenders controversially awarded to Chivayo and his dodgy foreign partners.

Despite song and dance at official signing ceremonies for the Munyati, Gaeresi and Gwanda power projects, nothing concrete has materialised to date.

Questions have been asked over the nature of the relationship between Chivayo and senior government and ruling Zanu PF officials, including Mugabe and his family, particularly First Lady Grace Mugabe, and Energy minister Samuel Undenge. Chivayo has previously been pictured in Dubai holiday jaunts with Grace. He has also been photographed with Mugabe and other members of his family.

In February, Undenge forced ZPC to unprocedurally pay Chivayo an advance of US$5 million for the Gwanda project.

The payment was made in the absence of a bank guarantee, a minimum requirement to protect public funds.
Undenge, who was struggling to pay US$350 maintenance for his daughter as recently as of December 2015, has of late seen his financial fortunes improve dramatically in the aftermath of payments to Chivayo.

In February Undenge received suspicious payments totalling US$186 000 through his personal and his wife’s bank accounts. Since then he has been embarked on costly refurbishments to his Glen Lorne home in Harare to turn the place into a mansion.

ZPC public relations executive Fadzai Chisveto was not reachable for comment on her mobile phone. Chivayo was also unavailable for comment.

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