BY MTHANDAZO NYONI

THE World Economic Forum (WEF) has ranked Zimbabwe at 127 among 141 countries on the Global Competitiveness Index (GCI), an indication that the southern African nation remains uncompetitive compared to other economies in the world.

Last year it was ranked 128 out of 140 countries.

In its latest assessment of the factors behind productivity and long-term economic growth, WEF ranked Zimbabwe at 127, close to the foot of the league table where it has been for two decades.

This effectively flies in the face of government’s “Zimbabwe is open for business” mantra.

For that rank, the country scored 44,3 out of a possible 100, thereby remaining slightly below the average for sub-Saharan Africa as a whole and behind eight Southern African Development Community member States.

“Those who believe that it makes sense to try and maintain the local currency at par with the rand need to reconcile this proposal with the yawning gap between South Africa’s ranking (60th) in the Global Competitiveness table and Zimbabwe’s position of 127,” writes Tony Hawkins, a retired professor of economics in an article published recently in the NewsDay.

“Strikingly, the country scores best in the realm of private sector activity and worst where the State is in control,” he further wrote.

On the 12 pillars of competitiveness, among 141 countries, Zimbabwe ranks at 125th on institutions, infrastructure (129), ICT adoption (112), macro-economic stability (97), health (135), skills (110), product market (136), labour market (115), financial system (120), market size (115), business dynamism (129) and innovation capacity (126).

Hawkins indicated that on the upside, it is in the top half of countries ranked for reliance on professional management, willingness to delegate, entrepreneurial culture and attitudes towards risk, and the strength of auditing and reporting standards.

“It is in the top half also for the impact of organised crime and incidence of terrorism.”

The global competitiveness report is a tool to help the governments, private sector and civil society organisations to work together to boost productivity and generate prosperity across the globe. It gives an understanding of comparative analysis between countries and allows leaders to gauge areas that need strengthening and to build coordinated responses.

It further helps to identify best practices around the world and informs about the domestic level performance.

The WEF is a not-for-profit foundation established in 1971 and headquartered in Geneva, Switzerland, which organises the annual Davos meeting for world leaders and billionaires.

by VENERANDA LANGA

HARARE mayor Herbert Gomba yesterday appealed to Parliament to make legislative reforms that will give powers to the city council to execute garnishing orders just like the Zimbabwe Revenue Authority (Zimra) to recover over $800 million it is owed by ratepayers.

Gomba had appeared before the Felix Mhona-led Budget and Finance Portfolio Committee to give oral evidence on devolution financing, where he also disclosed that there was need to revamp the tax systems to ensure a percentage of taxes from businesses goes to local authorities to enable them to finance water and road infrastructure development which is currently in a shambles.

Council finance director Stanley Ndemera said: “There is an $800 million debt owed to council. We cannot recover that money unless we go through the courts. However, we would like the laws to be reviewed so that they allow us to act as Zimra to be able to garnish institutions that owe us because those debts date back to 10 years ago.”

Gomba then added: “For example, we visited the United States Stanford County and the commissioner of that county has garnishing powers. We appeal to Parliament for tax reforms on behalf of all local authorities because in each local authority there are businesses and mining companies and any tax reforms to that effect will enable those businesses to also benefit.”

Extending garnishee powers to council would help it to recover the $800 million so that the city improves on service delivery, Gomba said.

Harare town clerk Josiah Chisango said there was need for assistance at national level for improved access to water in the capital, especially to ensure that Kunzvi Dam and Sabi Dam bring relief in terms of water to the capital and its dormitory towns of Chitungwiza, Norton and Ruwa.

“The only tax that we collect is property tax and what we collect from property tax is not enough for us to revamp the infrastructure. We have other taxes charged on businesses which we do not have access to and if a percentage of that can come to HCC, we can develop our infrastructure,” Chisango said.

Acting chamber secretary Charles Kandemiri said Harare only collected $15 million monthly against $73 million expenditure, of which $45 million of that was for water cleaning chemicals.

“That is a serious mismatch and the budget has not changed. We are still operating on a 2018 budget on 1:1 rate, which means we are collecting 1:1, but spending at 1:20 rate and that does not work,” Kandemiri said.

The council said if the Public Finance Management Act is amended to include devolution financing, it would assist local authorities to pass their budgets on time instead of having to wait for two to three months for the Local Government ministry to approve their budgets.

MPs then asked the mayor to explain the controversy behind the US$144 million Chinese loan.

Gomba said the council only got US$72 million of that $144 million because government owed the Chinese a lot of money. He said during the era of former Local Government minister Ignatius Chombo, who had appointed a commission for Harare, a decision was made that vehicles should be bought using part of the US$72 million loan.

BY BRENNA MATENDERE

GWERU councillors yesterday upheld the suspension of town clerk Elizabeth Gwatipedza over allegations of sleeping on the wheel.

Mayor Josiah Makombe handed Gwatipedza the suspension letter on Monday evening and a special council meeting was held yesterday to deliberate on the development.

At a media briefing soon after the meeting, Makombe said the councillors had unanimously upheld the suspension.

“I gave a letter of suspension to our town clerk madam Gwatipedza on Monday. We are just coming from a meeting, special council meeting where the issue was deliberated. The councillors unanimously upheld the suspension. What this means is that town clerk Gwatipedza is now on suspension pending all the processes that are required by the law,” Makombe said.

“As councillors we were not happy with the service delivery our residents have been getting. It is either there is no water or your refuse has not been collected or you are moving in untrafficable roads. So we were not happy with the direction the city was taking.”

Makombe said if Gwatipedza is cleared of any wrongdoing she can come back and continue with her duties at council.

“This is just a suspension. So what it means is that when you are suspended you are supposed to be invited to answer to the charges. So hopefully madam Gwatipedza will be able to join us again after the processes,” Makombe said.

Gweru council is dominated by MDC councillors and Makombe is the opposition party’s Midlands provincial chairperson while Gwatipedza is understood to be sympathetic to the ruling Zanu PF.

However, the mayor stressed that the suspension had nothing to do with politics.

“We are sworn politicians, but our management is of employees who are chosen on merit. So let me hasten to say the suspension has nothing to do with politics. It’s purely about issues of the employer and employee,” he said.

Gwatipedza refused to comment on the suspension.

“I have no comment,” she told Southern Eye.

Vimbai Chingwaramusee, Gweru council spokesperson, told Southern Eye that chamber secretary Vakai Douglas Chikwekwe is now the acting town clerk.

Employees in the horticulture sector have received a 71,36% salary increment which they, however, said was too little to cushion them from the prevailing economic hardships

BY MTHANDAZO NYONI

ZIMBABWE’S agriculture industry has awarded its employees in the horticulture sector a 71,36% salary increment which is, however, too little to cushion them from the prevailing economic hardships.

Before the adjustment, the least paid employee in the horticulture sector was earning $213 a month, while the highest was taking home $421.

Following the latest adjustment, the lowest paid employee will now get $365 while the highest paid will earn $722.

In a circular, the National Employment Council for the agriculture industry said the wage review and agreement, signed on October 3, was reached by several parties, among them, the Zimbabwe Agricultural Employers Organisation, the Zimbabwe Commercial Farmers’ Union, Zimbabwe Farmers Union, Commercial Farmers’ Union, General Agriculture and Plantation Workers’ Union of Zimbabwe and the Horticulture General Agriculture and Plantation Workers’ Union of Zimbabwe.

“An establishment or employees can apply to the National Employment Council within 14 days for an exemption or partial exemption or review from paying wages as set up in the above schedule, stating the reasons why that application should be considered,” reads part of the circular.

But Progressive Agriculture and Allied Industries Workers’ Union of Zimbabwe general secretary Raymond Sixpence described the new salary increment as a mockery.

“The money is not even enough. No one can survive on that kind of money. Things have gone up. Workers will not even be able to buy basic commodities like mealie-meal and cooking oil. We feel the lowest paid should at least get $1 000 a month,” he said.

Inflationary pressures have seen the cost of living rising beyond the reach of many in the southern African nation as prices of basic commodities have more than quadrupled in recent months, resulting in the poverty datum line for an average family of five skyrocketing by 15,18% to $1 617 in July.

Farm workers in Zimbabwe are among the least paid employees and classified as the “working poor”, despite the fact that agriculture is the backbone of the country’s economy.

At its peak, the sector used to provide 45% of the country’s exports, 60% of all raw materials used by local industry and 70% employment.

BY MISHMA CHAKANYUKA

Reserve Bank of Zimbabwe deputy governor Jesimen Chipika will grace this year’ Zimbabwe Independent flagship Banks and Banking Survey earmarked for tomorrow in Harare.

The main aim of the event, organised by Alpha Media Holdings (AMH), is to award banks that have performed exceptionally well over a given period. AMH are the publishers of NewsDay, The Standard, Zimbabwe Independent and also runs an online radio station HSTv.

The awards will be based on the findings for the 2019 half year.

The event comes at a time banks are reeling from an overabundance of constraints which include liquidity challenges, shortage of foreign currency, slow foreign direct investment inflows, high interest rate rates, adverse economic evolution and a supressed performance of banks’ loan portfolios.

This came about following a shift in the currency terrain after the introduction of Statutory Instrument 133, which paved the way for the re-introduction of the Zimdollar, after it was rendered useless by inflation a decade ago.

This year’s survey is themed Return of the Zimdollar Transition to Normalcy?

The Banks and Banking Survey was launched in 2009, and is held every year to analyse key ratios, as well as the balance sheet size and profitability of all the registered commercial banks and building societies operating in the country.

Lead researcher Respect Gwenzi from Equity Axis said it has become apparent, from this survey, that although all banks reported positive and improving face value earnings, the weakening exchange rate is reducing the purchasing power of the earnings in real terms.

“Most income lines, therefore, show slow to negative growth when adjusted for inflation. Banks have not been responsive in terms of adjusting interest rates and fees on transactional business to counter the impact of inflation. This is mainly because of industry regulation which is guided by the central bank” he said.

Last year, CABS emerged the top-performing bank with CBZ coming in second position.

By VENERANDA LANGA

Fert Seed and Grain (FSG) managing director Steve Morland yesterday distanced his company from a funeral business with a similar name as Parliament grilled him over the $400 million the fertiliser firm was paid under the Command Agriculture programme.

Morland appeared before the Justice Mayor Wadyajena-led Parliamentary Portfolio Committee on Agriculture to speak on the fertiliser situation as the country prepares for the summer cropping season.

He told the committee that there was confusion between his fertiliser manufacturing company and another company, FSG, which was a funeral parlour.

Wadyajena said Finance ministry director of finance Hazvineyi Churu and former Accountant-General Daniel Muchemwa, who resigned, had claimed to Parliament that FSG was a funeral parlour and had benefited from US$400 million funds for Command Agriculture.

But Morland denied any relationships with FSG Funeral Company.

“We have nothing to do with the funeral services group. We are a fertiliser company. I do not know anything about funerals. We are into fertiliser business and the funding that we received in 2016, 2017 and 2018 amounts to over RTGS$400 million and not US dollars,” he said.

“Of that amount, 20% was RTGS dollars and the balance was in Treasury Bills. We also managed to deliver all our targets in full, despite these funds being in RTGS dollars. We had to get letters of credit (LCs) from banks to get US dollars to import raw materials.”

Wadyajena then asked Morland to explain why the Finance ministry officials claimed his company was a funeral services company.

“To be honest, I do not even know the gentleman that mentioned that we are a funeral company. I have never met him. I can only assume that these people do not know us as FSG because our company is Fert Seed and Grain, and when they were asked who FSG was, they could have thought it was the funeral services company. If you Google FSG, it is the funeral services company that comes up which we have no relation with,” he said.

Sable Chemicals chief executive officer Bothwell Nyajeka, Windmill chief executive officer George Rundago and Zimbabwe Fertilizer Company managing director Richard Ndafana also appeared before the same committee where they testified that lack of foreign currency was severely affecting the fertiliser industry.

The different fertiliser producers said while they had capacity to produce enough fertiliser, they were worried as farmers had no disposable incomes to buy the product, which costs between $400 and $450 (US$29) per bag.

Ndafana said while FSG got most of the presidential input contracts to supply fertiliser, other fertiliser companies were struggling to get government contracts, and so were struggling to sell off their fertiliser.

BY PRAISEMORE SITHOLE

DOCTORS yesterday said the proposed Coroner’s Office Bill violates their independence of conducting post-mortems without duress.

Speaking at the Parliamentary Portfolio Committee on Justice, Legal and Parliamentary Affairs consultative meeting on Coroner’s Bill and Constitutional Court Bill in Bulawayo yesterday, the health practitioners said the new Coroner’s Bill implies that the minister gives directives to the Coroner-General.

They said this would force them to write false reports under duress from their superiors.

The new Bill provides for the establishment of an office responsible for investigating all deaths that come as a result of unnatural causes.

It also sets out the appointment, functions and powers of the Coroner-General (CG), Deputy Coroner-General and coroners in relation to post-mortems, inquests and their findings.

Doctor Francis Chiora said the proposed Bill gave too much power to the Justice minister and curtailed the CG’s independence.

“I would be happy if you, the parliamentarians, had the overall control of the body,” Chiora said.

“The minister may give to the Coroner-General such general directions relating to the policy. The office is to observe in the exercise of its functions as the minister considers to be necessary in the national interest,” the Bill in section 17(1) reads.

Chiora said: “Our biggest worry also touches on the issue of doctors being prosecuted after the death of someone who was being operated. When operating, some of the cases we take chances for the operation to be a success, but when I know that I will be prosecuted after a failure of an operation … how can I operate with an axe over my head? We will not be able to give maximum effort for fear of being prosecuted.”

He said parliamentarians should appoint the CG, who is not affiliated to any political party.

The doctors argued that the CG’s Office must also probe deaths linked to the minister.

Doctors also opposed section 7, which states that they should be answerable for the preservation of medical records.

“We put our entries in the notes and they move from one office to another and if the person is discharged, they go to the records officers. So I think it’s expecting too much from doctors. This can only be applicable in the prisons, police stations and maybe the private sector,” Chiora said.

The doctors also argued that the CG should not have the power to appoint any medical officer to do a post-mortem.

“This is not acceptable because the law does not force me to do a post-mortem. There is no reason at all to be told to do a post-mortem,” Chiora said.

Some residents argued that too many controls would lead to brain drain of the few remaining doctors, while others said it was necessary for government to control doctors because they were sometimes negligent.

BY FARAI MATIASHE

The Zimbabwe Human Rights NGO Forum has accused President Emmerson Mnangagwa’s government of lacking political will to address the ongoing humanitarian crisis and human rights violations, mainly perpetrated by the State and its institutions.

In its report, State of Human Rights Report Zimbabwe 2018, the NGO Forum said the human rights violations could be addressed at no cost.

“… 72% of the violations documented in this report do not require money to address or resolve. They only require political will: Stopping harmful behaviour by the government and its institutions. There must be political will to adhere to best practices in human rights and to implement the Constitution to which public officials swear allegiance to, and which is the social contract by which Zimbabweans (who will be governed),” part of the recommendations from the report read.

“The investment in developing a new Constitution was staggering, and it can only make sense if the Constitution is respected and implemented.”

The NGO Forum accused the government of using hide-and-seek tactics with citizens, instead of engaging them to have meaningful dialogue.

“Currently, Zimbabwe is in political crisis; there is no national agenda and unity of purpose. Political leaders in government are not having dialogue with each other in shaping the policy vision. The State is not having dialogue with its citizens, preferring hide-and-seek tactics,” the report reads.

Mnangagwa, early this year, invited political party leaders who participated in the 2018 harmonised elections to a dialogue, but the main opposition MDC party leader Nelson Chamisa snubbed the dialogue, accusing the Zanu PF leader of electoral fraud and described the dialogue as biased and not inclusive.

The NGO Forum slammed the ongoing dialogue for excluding the labour and civil society and recommended that government should urgently hold a dialogue which is inclusive of all citizens.

“High-level political dialogue remains imperative to unlock national progress. Civil society must be included in the national dialogue process. This would create an environment in which Zimbabweans can broadly dialogue and agree to create a human rights culture premised on tolerance, respect for each other and respect of the law,” the report continued.

The NGO Forum said the military and police, which have been the primary culprits in cases of human rights abuse, must not be partisan and must desist from violating human rights.

Addressing journalist at a pre-launch of the report in Harare on Monday, Forum programmes co-ordinator Dzikamai Bere said law reform must not be piecemeal and token, but wholesome and substantive.

“The sooner the country does away with the Public Order and Security Act and the Access to Information and Protection of Privacy Act and related repressive laws and provisions of the law, the better the country can do with human rights protection. Laws not compliant with the Constitution must be brought to conformity. Legislation that is contemplated by the Constitution must be passed,” he said.

“We don’t need to reform (repressive laws) to please the West and America. We need to respect human rights because it is good for us as Zimbabweans. There shouldn’t be a token. Of course, the Western countries can clap hands for us, but we are not necessarily doing this for them.”

But Information permanent secretary Ndavaningi Mangwana yesterday denied allegations that the government was not taking initiatives to engage its own citizens.

“The allegations are not accurate. We engage all citizens and all other stakeholders including civic society. Ours is one of the most important engaging governments south of the equator,” he said.

Editorial Comment

NEWS that listed Zimbabwean companies will, henceforth, start presenting their financial statements using the Financial Reporting in Hyperinflationary Economies Standard can only mean one thing: The cookie is crumbling, and it would be foolhardy for the country’s fiscal authorities to state otherwise.

Even in the absence of yearly inflation data, after the monetary authorities curiously suspended its publication in June, companies have increasingly been finding it difficult to craft financial statements, and that the Public Accounts and Auditors Board (PAAB) has finally decided to bite the bullet and let the cat out of the bag, effectively puts Finance minister, Mthuli Ncube and his colleagues on the spot.

Given what Ncube and colleagues have been telling us about the direction in which this economy is moving, the PAAB decision is a monumental embarrassment and an indictment on the much-vaunted so-called austerity for prosperity measures. Adding to the embarrassment is the painful fact that Zimbabwe has been here before, after sliding down the same hyperinflation precipice from 2001 to 2008.

Even more disconcertingly agonising and stressing is the fact that, while our previous experience with hyperinflation was a gradual eight-year ordeal, this time around it has taken us just under a year to hit the bottom.

It does not need a rocket scientist to tell us that our economics have failed, and dismally so. But, as the past has already dictated, those captaining our economic ship will never accept the truth for what it is. Like flies, they would rather be buried with a corpse than accept that it is now lifeless.

When these fiscal captains introduced the bond note in 2016, specifically the Reserve Bank Governor John Mangudya declared: “Give us a chance to do what is right for this economy, to put it back on track. If these policy measures fail, if the bond notes do not work out, I’m willing to resign because I am genuine about getting the economy back on track.” Are we even surprised that the man has not walked away three years down the line, long after the bond note has been mauled by inflation? No, we are not. And this is precisely where our problem as a country lies.

We are slow to accept failure and take comfort in our warped denial while things get ugly each passing day. We will not be surprised to hear that the PAAB has been taken to task, stoned with all manner of abuse and called all sorts of names, while being labelled unpatriotic.

Whether or not our monetary authorities choose to accept the truth as it is, the fact of the matter will continue to stick out like a very sore thumb: The cookie is crumbling folks! Period.

BY FORTUNE MBELE

SOUTH African Premier Soccer League (PSL) legal counsel Michael Murphy says player transfer disputes must be quickly dealt with and finalised so that the affected parties are not disadvantaged.

Murphy was speaking at the PSL international symposium held in the resort town of Victoria Falls last week.

The lawyer said the main reason player transfer disputes end up in court, where they take long to be heard, was that most football-governing bodies have no definite dispute resolution mechanisms that deal with such cases.

“One of the reasons why we have this system that impacts unfairly on players is because we don’t have a dispute resolution body that can hear their case so, therefore, the matter goes to court and is set aside,” Murphy said.

For example, FC Platinum player Lawrence Mhlanga spent two years inactive due to a player ownership wrangle between his club and former team Chicken Inn before the Zifa players status committee intervened.

Chicken Inn challenged the decision on the basis that it was not done by the relevant committee and also cited a number of irregularities, including the fact that they were not given a chance to make their submissions.

However, Zifa stamped their authority and maintained that Chicken Inn had arbitrarily held onto the player’s clearance.

Murphy also said it was common practice in South Africa for clubs to hold onto a player’s clearance and that could affect the player.

“In South Africa, the holding back of clearances (for players) was common practice and was in Europe until 1995, but at least there I imagine there were still payments to the players concerned. It was common to just hold back the clearance. They would just say he can’t go; don’t give him the clearance. Everything must just be urgent. There is no use if a player will get is clearance in two years; that might be too late,” the legal expert said.