Zimbabwe continues to groan under the crushing weight of an economic disaster rapidly manifesting through hyper-inflation, capital flight and a crippling energy crisis, among other symptoms of economic haemorrhaging.

This medley range of catastrophes comes barely two years after the ouster from power of nonagenarian and former President Robert Mugabe in a military-assisted power take-over and further, after sitting President Emmerson Mnangagwa won a disputed election in June last year.

It is inexplicable – immensely unfathomable – how, within such a short space of time of assuming power, the present government has economically crumbled like the proverbial deck of cards.

For any who had previously doubted the pedigree of the sitting administration to shift the country’s fortunes, it has become increasingly apparent that the disaster is not relenting and worse, there appears to be no plausible answer to the economic paralysis from the powers-that-be of the present government.

Beyond the woes manifesting daily, a number of mysteries exist; things beyond the comprehension of the ordinary Zimbabwean; things beyond our scope to decipher and overwhelmingly searching governance questions for the current government.

The first mystery is buried in the question of who exactly determines the United States dollar exchange rate against the electronic money and the local bond notes in this country.

This pressing question does not depart the tongues of Zimbabweans daily.

And no one seems to have the answer. This conundrum just got worse when last week a whole minister also posed the same question.
A minister professing ignorance on who runs the black market rates stokes the fires of confusion.

The United States dollar practically firms against the local currency (RTGS dollars) daily. The mystery surrounding these parallel market rates hovers around the issue of who determines the rises and falls.

Is it accurate to say that ministers in Zimbabwe are in the dark concerning the nocturnal hand that drives the parallel market?

It is even more puzzling that the government has, on several occasions, proffered conflicting statements on this issue.

Information minister Monica Mutsvangwa reportedly told journalists at a post-Cabinet briefing on Tuesday that authorities were aware of who the real buyers of foreign currency on the parallel market were and how they were pushing rates high.

By Friday, the US dollar was selling for ZWL$7,5 on the electronic money transfer platform and ZWL$5,8 for the bond notes.

The threat to name and shame economic saboteurs has remained just that; a threat in the air. Consequently, a plethora of theories have been birthed.

The naming and shaming speculation scarcely brings results.

Upon taking over power, the Mnangagwa government set a deadline for politicians and businesspeople that allegedly externalised over $1,3 billion during Mugabe’s reign. After the naming, no one was prosecuted for the alleged acts.

Perhaps no mystery befuddles the mind and brings anguish upon Zimbabweans than the fuel crisis that has viciously exerted vengeance on Zimbabweans.

Virtually, all the hardships currently being experienced by Zimbabweans can be squarely traced to the non-stop rises in fuel prices.

Life has become unbearable for Zimbabweans owing to the high commuter fares required to travel to and from and work.

The Zupco buses availed by government at subsidised fares have all but stripped Zimbabweans of their dignity.
The question that stands to be answered relates to what exactly is responsible for the astronomic increases in fuel almost monthly.
Why did the nation experience stability during Mugabe’s rule.

Could Mnangagwa be a spectacular failure in presiding over the nation’s affairs? Could it be that some people are deliberating sabotaging his regime?

In January, when the first tremor of the fuel crisis hit, the President himself made an announcement of the fuel price hike of 150%, sparking outrage and protests.
Then, Zimbabweans thought they had seen the worst, but the worst came last week when fuel prices were hiked for a record two times within three months.

The ordinary Zimbabwean may not understand much of the economic jargon pertaining to liberalisation, but all they cry for is a dignified existence.

It seems apparent that there are no logical explanations to this fuel mystery and the crisis marches on.

The third mystery is why a landlocked country with just 16 million people needs multiple currencies and particularly why it maintains the bond notes seeing clearly the suffering it has brought upon Zimbabweans?
It goes without saying that just the scrapping of the bond notes will go a long way in ameliorating the suffering of Zimbabweans.

In essence, when Mnangagwa took over power, many palpably envisaged a situation where the bond notes would be automatically scrapped, but they were wrong.

It, therefore, is a puzzle why the bond notes have remained in use almost two years on.

Who is benefiting from this arrangement? The bond note is a constant source of troubles as, just a few weeks back, it was reported that fake bond notes had been intercepted. Why their continued use? This confusion cannot be explained.

The final mystery in this whole crisis is the deafening silence and inaction of the government amid a deepening crisis.

 Learnmore Zuze is a legal officer and writes in his personal capacity

WHILE for six months, prices of commodities and services have been relentlessly surging upwards, wages and salaries have virtually remained stagnant as they have since dollarisation in 2009. And it is quite interesting to note how both government and private sector employers have been mum about the issue after a half-hearted attempt at a salary raise via a measly cost of living adjustment.

NewsDay Comment

While it is logical that any significant movement in the cost of goods and services should also translate into some kind of adjustment in the wage bill, this has not been the case in Zimbabwe; a situation we are afraid to say is becoming increasingly untenable.

All things being equal, we should never get to a situation whereby the country’s entire workforce resorts to petitioning the Head of State to press for better wages and working conditions. This merely points to a serious disconnect in the functioning of the whole State.

That it has been ages since the Tripartite Negotiating Forum (TNF), which brings together government, employers and employees, met to sort out these issues, clearly points to the root cause of the problem. The TNF is a critical part of any economy because it helps cultivate a culture of understanding among the key sectors of the economy.

As it stands, the situation is fast degenerating into chaos as both government and private sector employers keep avoiding meeting workers to listen to their grievances over their increasing inability, to not only continue reporting for work, but to afford to also provide for their families.

It seems government and the employers are now largely interested more on their own survival at the expense of the workers. But this kind of attitude is not only unsustainable, but is a serious indictment on any efforts to revive this troubled economy. We have said before, and repeat it again here, that a disgruntled workforce is the last thing this economy needs.

Once the country’s entire workforce decides to down tools, as they already indicated as their last resort, it means that nothing will function and the country will just grind to a halt. And when things reach that stage, anything can happen.

Government should not let things deteriorate to that because history informs us that once the ruling elite are cornered by crippling workers’ strikes they resort to evoking emergency powers, which only result in aggravating the situation. The country still has a window of opportunity to solve the wage issue through dialogue. We beseech the powers-that-be not to miss this chance to steady the dangerously rocking boat.

SOUTH African packaging firm Nampak Limited’s chief executive Andre De Ruyter says the operating environment in Zimbabwe has remained unstable ever since the country introduced the RTGS dollar.

BY TATIRA ZWINOIRA

Nampak Limited operates in Zimbabwe through its subsidiary, Nampak Zimbabwe Limited, which manufactures and markets packaging products such as paper, plastic and metal packaging.

The company noted that the rand value-cash balances in Zimbabwe more than halved to R466 million compared to R1,2 billion at the end of September 2018, due to the introduction of the RTGS dollar which had an exchange rate of 2,5 to the US dollar, leading to a 60% devaluation in the currency against the US dollar.

“Zimbabwe is very difficult to read at this point in time. Following the introduction of the RTGS dollar as the formal official currency as opposed to the US dollar, there has been a devaluation in the currency…We have taken a very conservative approach to our cash, which we have got in Zimbabwe and we have written it down from R723 million (US$49 712 197) to R466 million,” De Ruyter said in an interview with CNBC Africa last week.

At the end of the six months ending March 31, 2018, Nampak recorded cash on hand of R816 million (US$56 162 454).
“We have, however, got a hedge in place with a sovereign entity in Zimbabwe, which protects us on a 1:1 basis for the cash we have got. But as I have said, we have taken the conservative view, so there could be an upside to our cash in Zimbabwe,” De Ruyter said.

He said the US$57 million owed by Nampak Zimbabwe to Nampak International (“NIL”, a direct subsidiary of Nampak Limited) would be settled in quarterly payments over a three-year period from a US dollar denominated non-resident account established for the benefit of NIL.

“This represents approximately two thirds of the amount owing by NZL to NIL. Despite the aforementioned the group has made the election under IAS21: The Effects of Changes in Foreign Exchange Rates to include all its US dollar loans to its Zimbabwe operations as part of its net foreign investment,” Nampak continued.

IAS21 sets out how to account for transactions in foreign currencies and foreign operations in foreign exchange rates.

“We also supply packaging for the tobacco industry and that is a major foreign currency earner for Zimbabwe, which earns us forex to buy raw materials, so we are able to keep on operating in that country,” he said.

Nampak reported that liquidity from Zimbabwe remained very constrained, and raw materials were being funded by dollars provided by customers, as well as proceeds raised from export sales.

BY FIDELITY MHLANGA

THE International Monetary Fund (IMF) says Zimbabwe must step up efforts to increase foreign currency supply and allow exporters to sell their earnings directly on the interbank market to improve liquidity.

The Reserve Bank of Zimbabwe (RBZ) introduced the market back in February as part of monetary measures to facilitate the availability of foreign currency and tame a thriving parallel market, but the platform has failed to excite the market with few trades taking place.

Business has on several occasions complained about unavailability of hard currency on the interbank market.

“Deepening the interbank foreign currency market is essential for it to function as the basis for a market-determined exchange rate and to close the parallel market spread. Staff encouraged the authorities to take steps to increase the supply of foreign currency in the market, including by allowing exporters to sell directly into the interbank foreign currency market the amount they are required to surrender to the RBZ, which would allow for an effective price formation,” the fund said in a recent statement.

The IMF has approved a Staff Monitored Programme for Zimbabwe which will run to the end-December 2019.

“Existing exchange controls, which limit foreign currency purchases in the official interbank market for current account transactions, would continue to control demand for foreign currency, but the sanctioning and enforcement framework would be applied transparently and uniformly,” the statement added.

The IMF added that to move towards a unified exchange rate, any subsidies for specific goods or sectors such as fuel and medicine should be channelled through the budget, not through administered exchange rates. Authorities have since removed fuel subsidies.

RBZ deputy governor, Kupukile Mlambo, told a recent business meeting that around US$120 million had been traded on the platform since February.

Economist Persistence Gwanyanya, however, said the market was still not well developed to encourage trade.

A GOLD panner from Zvishavane, who has been on the run after allegedly killing a man in Shurugwi in January, appeared in court on Friday facing murder allegations.

By Stephen Chadenga

Prosper Zindiro, whose age was not given in State papers, appeared before Shurugwi magistrate Sithabile Zungula facing one count of murder after he allegedly killed Terrence Mhere and went on the run.

He was not asked to plead and was remanded in custody.

The court heard that on a date unknown, but sometime in January this year, Zindiro and his three accomplices, Breadwinner Mudzingwa, Lloyd Jinja and Darlington Mangoma, who are all still at large, went to Chimona Mine in Shurugwi armed with machetes, okapi knives and a whip made of barbed wire.

The four met Mhere and demanded gold from him and when deceased told them he did not have the mineral, a misunderstanding arose.

The gang, the court heard, assaulted Mhere with machetes before stabbing him several times all over the body and left him lying lifeless.

Zindiro was arrested last week.

Bertha Bore prosecuted.

AWARD-winning hip-hop musician, Takura, has hinted on launching a record label, One Entertainment, aimed at grooming upcoming hip-hop artistes.

BY FREEMAN MAKOPA

Takura said the move was motivated by the need to give the genre more visibility in the country.

The Zino Irema hitmaker used Soul Afrika as his entry gate into the music industry and has, within a short period, fully grown into a force to reckon with in his genre.

In an interview with NewsDay Life & Style through his manager, Michael Mangondoza, the musician said dates for the launch would be announced after all logistics had been put in place.

“Takura is looking at pushing upcoming talent, and he is also set to launch a record label soon called One Entertainment. We have started it, but will start recruiting talent soon so that we promote the genre as best as we can,” he said.

“That is what we are trying to do for the culture. Takura is trying to create a platform that will allow upcoming artistes to produce music the proper way. There are things that are affecting upcoming musicians such as cost of production, which can be high, hence the introduction of a record label that will house those artistes and give them an opportunity to reach their dreams.”

Mangondoza said a lot of people had shown interest in their record label.

“We also recently did the Zvemoyo challenge, which I will actually post its contestants on my Instagram page, just to give them exposure and shed light on their talent and that went very well. At least 500 local artistes participated in that challenge and we only had one winner, Darrelworld, who will have the chance to do a collaboration with Takura,” he said

Mangondoza said Takura was eyeing the international market and to fly the country’s flag high through music.
“Takura is a talented artiste, so we are eyeing to add value to the industry as well as grow beyond Zimbabwe. That is our focus at the moment. Zim hip-hop is definitely growing at the moment. At first people thought other genres were profitable and they never really supported hip-hop,” he said.

“There are many upcoming kids who have been good in what they are doing, which is really good because the industry then grows.”

BY JAIROS SAUNYAMA
A TEAM of nine international volunteers operating under a German-based non-governmental organisation called Friends of Waldorf Education (FWE) last week offered psycho-social services to a group of St Charles Lwanga High School students from Chimanimani, who are currently stationed at UMAA Institute in rural Chihota.

The volunteers, who hail from seven different countries, including Zimbabwe and Chile, are helping the 34 boys to deal with post-trauma following the devastating Cyclone Idai that destroyed their school in Manicaland province in March this year.
On March 15, a mudslide tore into the school premises, destroying infrastructure and killing two students in one of the country’s most devastating disasters, which left around 500 people dead and thousands others displaced.
The boys at the Catholic-run school could not go back to the learning institution because it is yet to be rebuilt following the disaster, prompting parents to find alternative schools.

When NewsDay visited UMAA Institute in Chihota yesterday, the volunteers were employing different tactics and sessions to the boys, with some still visibly traumatised by the disaster.

FWE head of mission Moises Elosua said the trauma-therapy sessions were going on well for the boys.
“We are here to offer psycho-social support to these boys, who we all know are victims of the Cyclone Idai-induced disaster,” Elosua said.

“We are from different countries and have experts to deal with trauma-related issues, hence various sessions being done here. We are happy that the boys are in a serene and friendly environment. We are also going to train the teachers so that they continue assisting the students after we leave. We are happy with the progress, as the boys are expressing themselves in these sessions.”

About nine teachers have been recruited to teach the 34 boys who are in different classes. The boys are staying at the institute, which has full boarding facilities.

UMAA Institute director Cleopas Kundiona said he had to assist the boys with learning facilities following their tragic experiences.

“Every child has a right to education. After their school was destroyed by floods, we offered them assistance in the form of learning facilities in Chihota. They are coping well and the examination class is also getting ready for their final tests later in the year,” he said.

About 400 boys from the Catholic-run school are currently scattered across the country after they were seeded into other schools until St Charles Lwanga High School is re-built.

Flamboyant businessman Frank Buyanga Sadiqi has lost the battle for custody of his four-year-old son to ex-wife Chantelle Muteswa, but immediately launched a complaint against the magistrate who handled the matter, Trevor Nyatsanza.

By Everson Mushava

Buyanga was taken to court by his ex-wife, who was seeking the court to make a declaration on the custody of their child after tussling over the matter that has, to date, implicated many people, including police officers, lawyers and magistrates.

The businessman filed contempt of court charges against Muteswa and wanted her to be sentenced for 60 days for failing to hand over the child’s passport to him in April when he wanted to travel with him to South Africa.
This resulted in Muteswa being detained by the police in April for contempt of court.

Nyatsanza on Monday heard both matters; Muteswa’s application for declaration of custody as well Buyanga’s application of execution pending appeal, where he wanted Muteswa to release the child’s passport.

Buyanga has already placed criminal and civil charges against his ex-wife.

The declaration of custody was handed down on May 27, and for the execution pending appeal, the ruling was supposed to be released on May 28 and then later moved to May 29.

“The applicant is the sole custodian of the minor child (name withheld). The respondent and applicant to pay own costs,” read the ruling by Nyatsanza, delivered in court on May 27.

After losing custody of the child, Buyanga on May 28 wrote a letter of complaint to the resident magistrate, accusing Nyatsanza of bias.

He claimed that his driver saw the magistrate in town chatting with his ex-wife and has the potential of making unfavourable ruling against him.

In his letter, he said he had been denied access to the passport of the minor child against a court order, forcing him to apply for the execution pending appeal, but verdicts have been postponed on several occasions.
“Prior to court ruling (the one giving Muteswa custody), Mr Nyatsanza, who was not at the court premises, was seen by my driver Lloyd chatting to Ms Muteswa along Fourth Street at the intersection of Kwame Nkrumah,” Buyanga claimed in his letter dated May 28.

“I am now concerned that Mr Nyatsanza, who was seen and discussing with Ms Muteswa outside court, can still adjudicate over my matter in an impartial manner. My concern is particularly informed by the fact that after meeting Ms Muteswa, Mr Nyatsanza further postponed the matter to May 29, 2019 for ruling. He might prejudice me after his meeting with another litigant in the same matter.”

He made an application for the magistrate to recuse himself.

The application was heard on Thursday, with Nyatsanza, who had already made the ruling on the execution pending appeal case before Buyanga’s complaint, agreeing to recuse himself, but referred the matter to the High Court.

“The essence of my ruling is that, and I quote from that ruling: ‘The portions that I stressed bring out the intention of the legislature that in the event of any access order, however framed but which is in substance an access order to determine the fate of such appeal. The magistrate court is clearly stripped of any power to allow execution pending appeal as is the case generally in terms of section 40(3) of the Magistrate Court Act (Chapter 7:10) This is a ruling based on what the law says in black and white’,” part of Nyatsanza’e ruling read.

Muteswa is represented by Munyaradzi Bwanya of Wilmot and Bennett Legal Practitioners, while Buyanga is represented by Rubaya and Chatambudza Legal Practitioners.

MANICALAND Provincial Affairs minister Ellen Gwaradzimba yesterday blasted individuals who were accumulating wealth through corrupt deals in the diamond sector.

BY KENNETH NYANGANI

She made the remarks at the Zimbabwe Consolidated Diamond Company all-stakeholders’ diamond security feedback meeting in Mutare, where she also urged Zimbabweans to shun individualism.

“We need to work hard as a company so that there (are) no leakages in the diamond sector. We are here at the meeting to share ideas and offer constructive criticism so that we have a credible diamond sector,” she said.
“We are aware that there are individuals who are accumulating wealth through corrupt means and I begin to wonder if they will (ever) get tired of accumulating wealth.

“Wealth is for all people in the country and I don’t know where the culture of individualism came from in this country. Let us have morals and values that guide our conduct.”

Gwaradzimba has been making headlines of late over Farwell Coffee Estates, a coffee farm in Chipinge, which her son is eyeing for takeover from a white commercial farmer.

Mines minister Winston Chitando, in a speech read on his behalf by his deputy, Polite Kambamura, said the diamond sector in the country should implement credible internal controls to plug diamond leakages.

“All players in the diamond sector are obliged to implement credible internal controls in order to facilitate for optimum diamond security and accounting systems,” Chitando said.

He implored the use of proper internal security to ensure accountability and an immediate end to leakages.
Centre for Natural Resources and Governance director Farai Maguwu said no amount of security would stop the invasion of Marange diamond fields by artisanal miners.

“I like the speech by both (ministers). There is need to rethink security in the context of Marange diamonds.
Security is a tough task, but there is no amount of security that can stop artisanal miners from invading Marange,” he said.

“What can government do at the moment? They should create space for artisanal miners and allow them to operate legally and ensure that the diamonds are sold to the State and have a win-win situation.”

THE docket of former Mines secretary Francis Gudyanga, who is accused of defrauding the State of more than $1,6 million in deals with an Israeli company, Nikuv, was yesterday reportedly missing, forcing his trial to be deferred.

BY DESMOND CHINGARANDE

Gudyanga also former Marketing Corporation of Zimbabwe (MMCZ) board chairperson, allegedly caused the parastatal to pay $1 629 500 to Glammer (Pvt) Ltd, an Israeli company through a local agricultural company, Pedstock.

Pedstock is a sister company of Nikuv International Projects Limited, which was accused by the opposition parties of rigging the 2013 elections in favour of former President Robert Mugabe.

Last month, Gudyanga filed a notice before the court to have his case heard in camera, alleging that some of the contents of the matter are privileged information that he signed for on the Official Secrecy Act and must not be revealed in an open court.

During the initial stages of the case, the State also asked for a postponement, saying they want to get a statement from the Zimbabwe Republic Police, to where some of the funds were channelled.

But magistrate Hosea Mujaya at the time asked Gudyanga to file that application in open court to see if it qualifies to be heard under camera.

However, yesterday, Gudyanga failed to file his application after the docket reportedly went missing.
Gudyanga’s lawyer, Norman Mugiya confirmed to the court that his client was remanded to yesterday, but is not aware of the prosecutor handling the case.
“I have no clue which prosecutor is handling the matter. I have been making follow ups all morning, but to no avail. I understand the docket was seconded to the Zimbabwe Anti-Corruption Commission (Zacc) after the last court appearance, but I consulted the district public prosecutor and the senior regional prosecutor. No one is aware of where the docket is,” Mugiya told court.
The arrangement then irked Mujaya, who then enquired the reason behind the missing docket. Mujaya also blasted National Prosecuting Authority and Zacc for not following the progress of their cases.
“This is not the first time we had to go through this especially with Zacc matters. Why is there no communication between the two? Right now, the defence is making an application for postponement on behalf of the State. We even warned witnesses to come to court on this date. The accused persons would have been arrested and placed on remand, but somehow prosecutors do not know about the progress on their cases. You have to be more organised as this causes more inconveniences,” Mujaya said.

Mujaya then postponed the matter to June 17 to allow the State to put their house in order.
It is the State’s case that during the period extending from September 2014 to December 2015, Gudyanga, acting in his capacity as Mines secretary and sometimes as MMCZ board chairperson when at that time no board was in existence, misrepresented to MMCZ that they pay $1 629 500 to Glammer (Pvt) Ltd, a foreign company through a local Agricultural Company Pedstock.

Gudyanga further misrepresented that the monies be accounted to as dividends due to the stakeholder, in this case the Government of Zimbabwe.

The State alleges MMCZ, acting on the accused, misrepresentation released the $1 629 500 to Pedstock when, in truth and fact, the money was not being paid to the government, but for a private arrangement.