PRECISELY two months back, on April 18, on the occasion of the country’s 39th birthday, President Emmerson Mnangagwa said: “Government is alarmed by the recent wanton and indiscriminate increases of prices which have brought about untold suffering to the people. This conduct by stakeholders in business, industry and commerce is inhumane, unethical, unpatriotic and goes against the grain of economic dialogue which the Second Republic has espoused. Government remains determined to restore the purchasing power of all workers. My government remains committed to address distortions in all sectors of the economy.”

NewsDay Comment

Everyone thought that the President’s stance would carry the day and the long-suffering Zimbabweans would finally be rescued from the prices hike Armageddon. Unfortunately, this was not to be because the prices never relented and workers’ incomes have been turned into chaff. The price hike regime has pierced into the country’s socio-economic fabric like a double-edged sword, with the private sector running roughshod over consumers on the one side, and government fuelling the price hikes on the other. Mnangagwa’s Independence Day rant now appears to have been just cheap talk meant to assuage the long-suffering Zimbabweans.

In mid-May, the Zimbabwe Energy Regulatory Authority (Zera) increased the prices of fuel by between 46% and 49%, a hike that was a crude follow-up on a jaw-dropping 150% January fuel hikes that triggered sporadic countrywide protests and led to lives being lost, with hundreds sustaining life-threatening gunshot wounds.

We then find ourselves at a loss for words when, despite it being clear as the blue sky that all is not well and prices have become the Second Republic’s Achilles heels, yesterday the economic hardship-weary Zimbabweans woke up to yet another price shocker after government again increased the price of fuel by ZWL$0,18 for diesel and ZWL$0,26 for petrol.

While, apparently, no reason was proffered for the latest hike, government expects business and individuals out there to remain silent and also not hike the prices of their own goods and services. Countless times we have reminded our beloved government that fuel is a critical factor in the pricing regime of goods and services; but, unfortunately, our point of view continues to be ignored.

It is sad that we have a government bent on insisting on driving home the adage “do as I say and not as I do”. Regrettably, this attitude – especially when it comes to political and socio-economic issues – will only result in Zimbabwe being relegated to a pariah State.

It would be absurd and downright foolhardy, to say the least, for Mnangagwa’s government to expect business to maintain old prices, which is tantamount to subsidising the State. Have business and the people of this country not suffered enough for government to even entertain the idea?

We are afraid to say government’s continued brazen hiking of fuel prices could be the Second Republic’s self-inflicted undoing. Fuel is literally the lubricant oiling this economy and if government continues to recklessly fiddle with its price for whatever reason, it should be prepared for the consequences of its own actions.

Government continues to inadvertently prove right some prophets of doom among us, because they keep indicating left and turning right, while many a time not turning at all.

Confusion is reigning supreme in legal circles following the alleged irregular appointment of former Finance minister Patrick Chinamasa as board chairperson of struggling Air Zimbabwe by President Emmerson Mnangagwa at a time the entity is still under reconstruction.

BY XOLISANI NCUBE

Transport minister Joel Biggie Matiza confirmed that the State airline was still under reconstruction by Reggie Saruchera,adding that the appointment of Chinamasa was “just in preparation for the board’s eventual take over’.

“Yes, the company is still under reconstruction, but we cannot wait for the process to complete so that we start looking for board members. We are looking for suitable people to steer the company forward after the reconstruction process,” Matiza said.

He said other board members were yet to be appointed.

Attorney-General, Prince Machaya, was of the opinion that it was not illegal to have a board while the company was still under reconstruction.

“I don’t think it is illegal to have a board when the company is under reconstruction. Anyway, talk to the Minister of Justice. He is the one in charge of that process,” said Machaya.

According to a statement by the Chief Secretary to the Office of the President and Cabinet, Misheck Sibanda, Mnangagwa appointed Chinamasa to chair the board with immediate effect, putting in doubt Matiza’s claims that the job was in preparation for the future.

“Cde Patrick Chinamasa, who is the Zanu PF secretary for finance, has served the Government of Zimbabwe in several portfolios, including that of Minister of Finance and Economic Development. His appointment is with immediate effect,” Sibanda said in a statement.

Ironically, on Monday, Saruchera appeared before the Parliamentary Portfolio Committee on Transport and Infrastructure where he indicated that the assumption of the national airline’s US$387 million debt would pace up the company’s reconstruction process.

The reconstruction plan is expected to see the national airliner operate at least four planes, servicing the domestic and regional markets.

Saruchera said Air Zimbabwe had been running inefficiently, with large aircraft servicing short haul routes.

According to Kent University law lecturer, Alex Magaisa, once a company has been placed under reconstruction, the powers of the board are suspended as an administrator is appointed through the judicial process.

Management for Air Zimbabwe (Pvt) Ltd and Air Zimbabwe holdings (Pvt) Ltd, according to the notice to place the company under administration, was to be answerable to Grant Thornton Chartered Accountants, who in turn report to the permanent secretary.

Questions have been asked as to why the announcement was made first at a Zanu PF politburo Press conference when the appointment was supposed to come from government. The Statement by Chief Secretary to the President and Cabinet only came hours after the Zanu PF spokesperson, Simon Khaya Moyo, had already announced Chinamasa’s appointment.

In October last year, Justice minister, Ziyambi Ziyambi placed troubled Hwange Colliery Company under the administration of Bekithemba Moyo, a co-founder and director of DBF Capital partners, effectively ending the tenure of the Juliana Muskwe-led board.

TOP filmmaker and Rain Media (Private) Limited director Shem Zemura has been ordered by a Harare magistrate to pay US$300 to scriptwriter Amanda Ranganawa for the parts she scripted for the award-winning film, Kushata Kwemoyo, which premiered in Harare last year.

BY TAFADZWA KACHIKO

Ranganawa had hauled Zemura and his company to court over the unpaid dues.

Magistrate Tilda Mazhande ruled that besides the US$300, Zemura should also pay an additional 5% interest.

“It is ordered in default that (1) The defendants jointly or severally one paying the other to be absolved be and are hereby ordered to pay to the Plaintiff: (a) The sum of US$300 (Three Hundred United States of America Dollars) owed as money due to plaintiff arising from a script writing contract. (b) Interest on the sum of US$300 at the prescribed rate of 5% per annum from the date of issue of summons to the date of payment in full and (c) Costs of suit on an attorney and client scale,” reads the court order.

Zemura had, through his lawyers Mbidzo, Muchadehama and Makoni denied the allegations, describing them as “baseless.”

He argued that he would only be able to pay Ranganawa after the film sold as was agreed in their contract signed in November 2017.

“As a matter of fact, that’s not new. The contract which she is in possession of, dated November 2017, stipulates that she was going to be paid after the film sales. That’s the contract signed when she sold her script,” Nick Zemura — speaking on behalf of Shem — said yesterday.

Part of the scripwriter agreement signed on November 12, 2017 reads, “In consideration of the agreement made herein by the first part, the second part shall only be entitled to such payment after the sale of the film.”

Ranganawa, who was represented by lawyer Marufu Mandevere in the case, said if she was not paid her dues as per the court order, she would seize Rain Media’s property.

MDC leader Nelson Chamisa yesterday said he was not plotting to purge security chiefs, but the political leadership of President Emmerson Mnangagwa that has been ‘abusing Zimbabweans to pursue a partisan agenda’.

By Everson Mushava/Obey Manayiti

Chamisa said this while addressing thousands of mourners gathered in Glen View South, Harare to bid farewell to the area’s late MP, Vimbai Tsvangirai-Java who died on Tuesday from injuries sustained in a fatal road accident just outside Kwekwe on May 14.

“We have an army: soldiers, police officers, they are all civil servants. They serve us (MDC), Zanu PF and everyone. They are a country’s security force. I have heard some people lying that Chamisa wants to fire them if he takes over,” Chamisa said.

“No, we are not going to do that, we want to remove Mnangagwa and his government, not the civil servants. We want to remove those that use the country, not those used by the politicians.”

The youthful opposition leader also threatened to give Mnangagwa some sleepless nights if he continued to dither on engaging in “genuine dialogue” that should be centred on resolving the legitimacy crisis created by last year’s general elections controversially won by the Zanu PF leader.

Chamisa said there were people trying to put a wedge between him and military personnel, police and Central Intelligence Organisation operatives by lying that he would fire them if he takes over power.

The military have in past elections been accused of campaigning for Zanu PF, declaring that they would not salute anyone without liberation war credentials. The military helped Mnangagwa take over power from former President Robert Mugabe in November 2017.

Chamisa maintained that the country will not escape from the current economic quagmire if there was no genuine dialogue between his party and Mnangagwa.

“For this country to go forward, we have to resolve the political dispute in this country, around the issue of elections,” Chamisa charged.

“If we don’t resolve that, we will have a merry-go-round, but the country will not move forward because there is no synthesis or national consensus on the way forward. A divided country will not stand. And we have said, we are ready to dialogue with you Cde Mnangagwa, not for my purpose, not for power-sharing, but sharing of ideas, an idea whose time has come, and an idea for change.”

He added: “A country is not run by one person, but by many, particularly, when the leader understands more what those who do not support him want; moreover when they are more than those who believe in him.

“But he (Mnangagwa) doesn’t listen. I am talking politics here because Vimbai was a politician. She wanted everyone to have a good life, not what we have, a country with no water. There is no country that should run short of electricity, but what is evidently lacking is the electricity to power their minds. This is what they lack. Why do we have a country so rich in resources and yet so poor in what we have.”

Noting that many people wanted to protest and were simply waiting for a signal from his party, he said: “I have heard a lot of people saying we are waiting for a signal and I have told them to relax, we have all the time, we don’t want to do something that will not bring results.

“When we start, we will succeed. There will be no sleeping because we want all people to know that change has come, in peace. We want peace in this country, we want peace in this country and we want a negotiated outcome which will allow us to deal with the dispute of the July 30 2018 elections.”

Vimbai’s husband, Apostle Batsirai Java, Chamisa and Parliament donated $15 000 to be shared equally by the widows of Paul Rukanda and Tafadzwa Mhundwa who were killed in the same accident.

First Lady Auxillia Mnangagwa visited the Tsvangirai family at their Strathaven home to pay her condolences later in the day.

THE Zimbabwe Republic Police is investigating a Beitbridge robbery victim Muchineripi Hlaringo’s source of money after he lost R569 000 and US$4 500 during a night raid at his home this week.

By Rex Mphisa

Hlaringo was attacked early Monday morning by three armed robbers who broke into his home in Beitbridge.

They tied his wife with ropes, helped themselves to the cash before shooting their victim seven times. Hlaringo is, however, out of danger.

The robbers also helped themselves to his shoes, mobile phones and a car they used to get away from the scene in a section of Beitbridge’s unlit area.

National police spokesperson Assistant Commissioner Paul Nyathi said police were keen to know the source of Hlaringo’s funds and did not rule out the victim’s involvement in illegal foreign currency dealings.
“We want to know the source of his funds. There is a possibility he was engaged in foreign currency deals,” Nyathi said.

Police have also advised people not to keep large sums of money at home as this could get them, their families and neighbours into trouble in the event of violent robberies.

“More often than not, the possibility of information leaking cannot be ruled out. In the case of resultant robberies, there can be a danger to lives. We advise people to use banking institutions when they have these large amounts of cash,” Nyathi said.

On lack of police visibility in Beitbridge, Nyathi invited the public and other stakeholders to complain to the officer commanding the province.

“But I can tell you that at the moment, police in Beitbridge are involved in ‘stop and search’ exercises aimed at flushing out and arresting criminals.”

Nyathi said Beitbridge Urban member-in-charge Chief Inspector Kenneth Mushongahande’s failure to transfer to Zaka district in Masvingo was above board.

“The ZRP has a transfer policy based on performance, experience and knowledge, and the reversal of Mushongahande’s transfer was above board. We are not aware of any sinister motive about that and any public complaints as regards his operational shortcomings may be communicated through his province or the usual police channels,” Nyathi said.
Mushongahande, who has not responded to written questions and ignored phone calls, has come under criticism from residents in the wake of increased robberies, most of them bloody.

Domestic violence against women is also on the rise in the transit town, where he is accused of concentrating his efforts inside the border post at the expense of residential, business and industrial areas.

Residents worry that crime hotspots at the border have of late been ignored and robbers were having a walk in the park in the strategic settlement.

CHIREDZI West legislator Farai Musikavanhu has allegedly withdrawn hospital beds and other medical ancillary supplies donated to Chiredzi Polyclinic by opposition MDC losing parliamentary aspirant John Mangange, and dumped the goods outside the council offices.

BY GARIKAI MAFIRAKUREVA

Musikavanhu reportedly roped in State security apparatus to order the removal of the donations from the clinic.
Mangange, who is based in the United Kingdom, donated an ambulance, 30 wheelchairs, three 5 000-litre water tanks, 10 electric operated beds, BP testing kits and various other items to the Chiredzi Town Council-run polyclinic in a bid to ease congestion at Chiredzi General Hospital maternity ward.

He also helped with the refurbishment of the clinic’s buildings. The donations worth thousands of United States dollars were recently handed over to Chiredzi Town Council in the presence of Masvingo Provincial Affairs minister Ezra Chadzamira.

However, Manganye’s nemesis Musikavanhu teamed up with State security agents, forcibly removed the donations from the clinic last week and dumped them at the council workshop backyard.

Southern Eye visited the workshop on Monday, and found the beds strewn all over the yard, while the clinic’s labour ward only left with two beds. The ambulance had also been removed from the premises.

Musikavanhu referred all questions to council chairperson Gibson Hwende.

“May I suggest to you that you ask the council chair and town secretary,” Musikavanhu said.

Hwende said he was not aware that the donations had been removed from the clinic.

“I am not aware, will check and give you feedback on that,” he said.

Former Chiredzi West MP Darlington Chiwa (Zanu PF) described Musikavanhu’s action as political suicide, adding the move would cost the ruling party dearly in the 2023 election.

“If this was the idea of (President Emmerson) Mnangagwa and his wife’s (which I doubt) way of thinking; then they are not fit to rule this country. Zanu PF should thoroughly vet some of their candidates, otherwise some are just in there to destroy the party from within,” Chiwa said.

“On the other hand, we have overzealous State security agents in Chiredzi that is why some are now playing the part of bodyguards to certain individuals, or harass ordinary citizens over petty issues, while some are now involved in food distribution.

“I don’t think their headquarters is even aware of such behaviour that is reducing the respected intelligence department to mere police constabularies bereft of elementary professional ethics.”

Chiwa added: “I am sure the donations were going to benefit all and sundry regardless of their political affiliation. Even Manganye made the donations without a political jacket. This is what Mnangagwa is looking for from those in the diaspora. That is why the Minister of State was even involved in the clearing of those donations at Beitbridge Border Post. He played his ministerial and fatherly role.”

ZIMBABWE’S credit only microfinances advanced loans amounting to $18,5 million in the first quarter, growing the sector’s loan book from $207, 3 million as at December 31, 2018 to $225,8 million as at March 31, 2019 .

BY BUSINESS REPORTER

According to the Zimbabwe Association of Microfinance Institutions’ first quarter report, the sector registered an aggregate net profit of $4,5 million for the three months period, compared to $2,7 million recorded during the same period last year.

Total income from interest and fees amounted to $30,2 million against a total cost of $25,6 million leading to an operational self-sufficiency ratio of 117% as at March 31, 2019.

Return on equity and assets improved significantly to 24% and 8% respectively, compared with 16% and 5% as at December 31, 2018. The top five MFIs accounted for 76,1% of the total loans, while the largest MFI, with a total loan book of $74,6 million, had a market share of 33,2%. Credit risk as expressed by the ratio of portfolio at risk (PAR >30DAYS) in the microfinance sector has significantly deteriorated from 7% in December 2018 to 11% as at March 31, 2019. This is way above the 5% benchmark, and as such poses a threat to the commercial viability of many MFIs in the sector.

“Since most loans in the sector are unsecured, their delinquency levels, unless attended to swiftly and decisively, may have a contagious effect of affecting both the profitability and capital levels of some MFIs,” the report read.

“The short to medium term solutions lie then in controlling the level of credit risk through the adoption of preventive credit risk mitigation measures such as the re-designing of loan products that meet client needs, tightening client screening systems as well enhancing the role and technical capacity of loan officers and committees engaged in approving credits before disbursements”.

In Zimbabwe, where the majority of citizens have no access to formal banking facilities, the MFI sector plays a significant role in the financial inclusion agenda and the attainment of Sustainable Development Goals.

NORTON MP Temba Mliswa (Independent) yesterday raised a matter of privilege with Speaker of the National Assembly, Jacob Mudenda, over the recent importation of a US$250 000 Lamborghini vehicle by Gokwe Nembudziya MP Justice Mayor Wadyajena.

BY VENERANDA LANGA

Although it was a private acquisition, Mliswa wanted to know whether Wadyajena managed to import his luxurious vehicle using tax rebates enjoyed by legislators.

“While MPs enjoy tax rebates on vehicles, it is important to understand what kind of vehicles MPs are entitled to,” Mliswa said.

“Are MPs entitled to vehicles that can get to their constituencies and not Lamborghinis, because a Lamborghini doesn’t get to rural constituencies? The public are now asking questions about the vehicle and your guidance, Mr Speaker, is sought on the types of vehicles we must get as MPs,” he said.

This did not augur well with Wadyajena who shouted back at Mliswa, saying: “You are an embarrassment. Why are you so jealous?”

Mudenda then ruled that if Mliswa needed clarity on which type of vehicles MPs could import on tax rebates, then he should approach Parliament administration to get guidance.

In an unrelated issue, Buhera South MP Joseph Chinotimba asked the Speaker to send a delegation of 10 opposition MPs and 10 ruling party MPs to South Africa to compare prices.

Chinotimba claimed that goods were generally cheaper in Zimbabwe than in South Africa, saying the only problem was workers’ poor salaries.

“Our diesel at ZWL$5,07 is cheaper than in South Africa where diesel costs R16 per litre. It means our diesel is cheaper by far and people outside the country are coming to buy our fuel.A loaf of bread in South Africa costs R15, while ours costs ZWL$3. What I have noticed is that our salaries are low and are being rated at 1:1 to the United States dollar,” Chinotimba said.