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GMB misled Parly on $9m silo repairs loan

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By Farai Matiashe

Grain Marketing Board (GMB) chief executive officer Rockie Mutenha allegedly misled Parliament on Tuesday when he denied reports that the parastatal received $9 million from the Grain Millers Association of Zimbabwe (GMAZ) to repair its silos, NewsDay has learnt.

Mutenha told the Parliamentary Portfolio Committee on Agriculture led by Gokwe Nembudziya MP Justice Mayor Wadyadyena on Tuesday that the GMB did not receive money to repair silos from GMAZ and never entered into a loan agreement with any institution.

But documents seen by NewsDay indicate that in 2017, GMAZ entered into a silos repair contract with government, represented by then Finance minister Patrick Chinamasa.

“This indicative term sheet sets out the basis upon which the GMAZ would consider financing GMB to enable the latter to rehabilitate, repair and maintain certain of its
silos,” part of the contract reads.

The utilisation of $9 million was to be monitored by MetBank Limited, which was the “arranger” of the contract.

“MetBank, through whom the financing will be advanced to the Government of Zimbabwe, will jointly monitor the utilisation of the facility amount with the Ministry of
Agriculture and Ministry of Finance.

“The facility amount will be deposited by GMAZ into the following account held by MetBank. Account Name: GMB Silo Rehabilitation/Grain Millers/Metbank Escrow Account.

Account Number 0107003279714 for onward transmission to the Government of Zimbabwe into an account instructed by the Ministry of Finance upon satisfactory supervision of
works in progress,” reads part of the contract, which was signed by Chinamasa and GMAZ chairperson Tafadzwa Musarara.

In a letter to the GMB auditors, Baker Tilly and Chartered Accountants, Mutenha, as the GMB general manager, confirmed that the parastatal had received over $5 million from
GMAZ.

“GMB was given authority to utilise funding from the GMAZ facility for silo rehabilitation works. The entity has to date withdrawn $5 516 244,99. This was all channelled
towards the waterproofing of silos,” part of the letter, signed by Mutenha on February 13, 2018, reads.

In 2017, then Vice-President Emmerson Mnangagwa also acknowledged that government had received funding from GMAZ to rehabilitate silos.

Contacted for comment last night, GMAZ spokesperson Garikai Chaunza said: “We can confirm the authenticity of these documents and we are still waiting for GMB to give us a
full audited report of how the money was spent.”

Mutenha last night refused to comment over the matter.

“I am sorry I cannot speak on that matter over the telephone, worse considering I am in the comfort of my home,” he said.

ED running out of time: Komichi

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BY KENNETH NYANGANI

THE opposition MDC party yesterday said it would soon give President Emmerson Mnangagwa an ultimatum to urgently address the deepening economic crisis facing the country, failing which government would face crippling demonstrations.

Addressing party supporters at Masere business centre in Mutare Central, where the party was campaigning for its ward 10 candidate Rosemary Mukodza ahead of a by-election scheduled for Saturday, MDC vice-president Morgen Komichi insisted that Mnangagwa was not the “legitimate” leader of the country.

“Emmerson Mnangagwa is not the leader of this country. He was given the power by the Constitutional Court. They rigged the elections,” he said.

“Let’s look at the economy; Mnangagwa will end up killing us all. We should give him an ultimatum to fix the economy because you are telling me that a loaf of bread is
going for $4. We are going into the streets peacefully. That is what we are doing.

“We should not be tricked by Zanu PF. I am told they have started vote-buying. Let’s show them and go out in our numbers. We want to come here in our numbers on Sunday and
celebrate our win.”

The MDC also accused Zanu PF of employing dirty tactics after the ruling party tried to divert attention by distributing maize to villagers.

Harare warned against ‘abitrary’ demolitions

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BY RUTENDO MATANHIKE

HARARE residents have warned the local authority against the arbitrary demolition of so-called illegal structures in the city without following due process.

Addressing journalists yesterday, Combined Harare Residents Association’s (CHRA) director, Loreen Mupasiri said the local authority should respect the rights of all residents in the city.

“In as much as we do not condone illegal housing structures, we note with concern that the City of Harare has failed to respect citizens’ right to freedom from arbitrary eviction as enshrined under section 74 of the country’s supreme law,” Mupasiri said.

This follows reports that council was planning to demolish illegal structures built in Budiriro’s Tembwe area.

Mupasiri said demolitions which do not follow procedure resulted in humanitarian crises that leave residents vulnerable to disease.

She condemned the use of the country’s security forces when carrying out demolitions and urged council to use the courts as opposed to the arbitrary evictions it is fond of executing.

“We reiterate that council must be armed with court orders rather that the gun when effecting the demolitions and we demand council to follow proper procedures before demolishing houses,” the CHRA director said.

The association said the city’s housing department was also to blame for the mushrooming of some illegal structures due to its poor town planning.

Ziyambi grilled over currencies

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BY VENERANDA LANGA

JUSTICE minister Ziyambi Ziyambi was yesterday grilled in Parliament over whether the 2019 national budget, which was presented by Finance minister Mthuli Ncube in United States dollars, had now been converted to the newly-introduced Real Time Gross Settlement (RTGS) dollars.

First to fire questions was Rushinga MP Tendai Nyabani (Zanu PF), who demanded clarity on government policy regarding multi-currency usage given that the RTGS$ and the US$ had different trading values.

In response, Ziyambi said: “We had a basket of multi-currencies like the US$, rand, pula and others, and now, we have introduced the RTGS$ through Statutory Instrument SI 133 of 2018 to increase on that multi-currency basket.”

Gokwe Nembudziya MP Justice Mayor Wadyajena (Zanu PF) then asked Ziyambi to further explain if the bond note was now the RTGS dollar?
“Technically, according to SI133 of 2018 the RTGS$ and bond notes are different, but both are trading currencies in our laws and so, practically, they are the same,”
Ziyambi responded.

Mutare Central MP Innocent Gonese (MDC Alliance) then asked: “In light of the explanation and the fact that now we have the RTGS$, yet the 2019 budget was presented in US$ and now the RTGS$ is trading on the basis of a floating exchange rate on the interbank rate, what does it mean in terms of figures to our budget, and to persons who deposited actual US$ in their accounts before introduction of the multi-currency (basket)?”

Ziyambi said all balances in the budget were converted to the RTGS$.

“So, what it means is that if the budget was US$10 million, it becomes RTGS$10 million; and there was a separation of accounts to nostro and RTGS$,” the Justice minister said.

“SI 133 of 2018 states that at the opening of trading, the RTGS$ will be equivalent to the US$, and then later, the rate will be determined by the market. So, if you had $10 000 and trading started when the US$ was weaker, then you have more money. SI 133 of 2018 says the RTGS$ will be 1:1, but when trading starts, then market forces will come into play.”

But Gonese said before the RTGS$ was introduced, some people had deposited real US dollars into their accounts and still want to withdraw them as US dollars.

“When the RTGS$ was introduced, it was 1:1 to the US$ and now market forces will determine what comes into play,” Ziyambi said.

Further asked by Kambuzuma MP Willias Madzimure (MDC Alliance) whether government considered this to be morally right, Ziyambi replied: “Issues of law and morality are different. I explained SI 133 of 2018 and whether you want to look at it from the moral side or not, I am merely stating the law.”

No going back on congress: MDC

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BY CHARLES LAITON/BLESSED MHLANGA/OBEY MANAYITI

THE High Court yesterday nullified Nelson Chamisa’s MDC presidency and ordered the party to organise an extra-ordinary congress to choose a new leader within a month, but the youthful opposition politician vowed to go ahead with his party’s planned elective congress later this month while appealing the court ruling.

The verdict by Justice Edith Mushore follows an application by MDC secretary for Gokwe Sesame district, Elias Mashavira, who petitioned the High Court last year seeking nullification of
Chamisa and his deputy Elias Mudzuri’s appointment into the party’s presidium.

The duo was handpicked and appointed as co-vice-presidents by the now late MDC leader Morgan Tsvangirai.

But in her ruling delivered in the motion court, Justice Mushore said: “The appointments of the second and third respondents (Chamisa and Mudzuri) as deputy presidents of the MDC party were unconstitutional and, therefore, null and void. The appointment of second respondent (Chamisa) as acting president, and president of the MDC party were unconstitutional and, therefore, null and void.

“All appointments and/or reassignments and all actions of the second respondent in his purported capacity as deputy/acting or incumbent president were unconstitutional and,
therefore, null and void.”

Justice Mushore also ordered the MDC party to hold an extra-ordinary congress within a month.

In July 2016, Tsvangirai handpicked Chamisa and Mudzuri as his deputies and when he passed on in February 2018, the party’s national executive committee and the national council annointed Chamisa and Mudzuri as president and deputy, respectively.

But Mashavira challenged the move, citing violation of the party’s constitution.

Justice Mushore said it was self-evident that, according to the MDC’s constitution, party presidents and their deputies were only elected at congress and not appointed.

“Second and third respondents’ (Chamisa and Mudzuri) claim to be deputy presidents is based upon the late president (Tsvangirai) picking them to be deputy presidents. They were not elected into those positions at a congress,” the judge said.

“The applicant (Mashavira) claims that the legitimate deputy president in the party, who still carries the title of deputy president, is the fourth respondent (Thokozani Khupe), by virtue of her democratic election at congress in 2014. That claim is aligned to the provision in article 6.4.4.1 of the party’s constitution. It is that simple.”

Justice Mushore further noted that after Tsvangirai’s death, the acting president, as per article 9.2 of the constitution, should have assumed the presidential duties and called for an extra-ordinary congress in no later than a year from the death or resignation of the former president.

“Plainly speaking, therefore, … the duty to call (for) the extra-ordinary congress for such an election would have been that of the fourth respondent (Khupe). The constitution is specific about this requirement …,” she said.

In his application, through his lawyers Mutungura and Partners, Mashavira had cited the MDC, Chamisa, Mudzuri, Khupe, MDC secretary-general Douglas Mwonzora and chairperson Morgen Komichi as respondents.

Mashavira also challenged the decision of the party’s national executive committee and the national council to elect Chamisa as party president outside congress.

He said, as a delegate representing Gokwe Sesame district, he was supposed to have been invited to an MDC congress organised by Khupe in Bulawayo last year.

“The fifth respondent (Mwonzora), as the secretary-general, did not invite delegates, neither did he take minutes of the alleged congress. My province, district, ward and branch were not invited to that congress and, as such, in terms of the MDC party constitution, no congress has been held to fill the vacancy left by the passing on of the president of the MDC party, Morgan Richard Tsvangirai. In any event, what was supposed to be held is an extra-ordinary congress, not an ordinary congress,” he said.

“Upon the death of Tsvangirai, provisions of the party’s constitution regarding the president’s succession automatically kicked in. However a dispute erupted between Khupe, Chamisa and Mudzuri.”

In a statement yesterday, MDC spokesperson Jacob Mafume, however, said the party was going ahead with its elective congress set for May 24-26 in Gweru, regardless of the High Court ruling.

“We have just been advised of the High Court of Zimbabwe judgment issued by Justice Edith Mushore today. We fundamentally disagree with the judgment. The choice of leaders of any political party, the world over is the sole preserve of the members of that party,” he said.

“It can never be a judicial process. Equally, the actions, activities and programmes of a political party, being a voluntary organisation whose existence is protected by the Constitution, is the sole preserve of the members of that party.”

The MDC said it would appeal the High Court judgment, noting in their statement that the courts had become an extension of “Zanu PF hegemonic rule”.

“In just a few weeks’ time, the MDC will complete the process of democratically electing its leadership at a congress convened in terms of its constitution. Strangely, Justice Mushore’s judgment contradicts and totally ignores an earlier judgment of the High Court, which ruled on the case of Murimoga versus the MDC,” Mafume said.

In 2017, the High Court dismissed an application by Patson Murimoga challenging the appointment of Chamisa and Mudzuri as vice-presidents.

“We are fully aware of the machinations and strategies being deployed by the Mnangagwa administration to destabilise and destroy the people’s project. We reiterate that (President) Emmerson Mnangagwa is illegitimate and no amount of diversionary tactics will change this fact,” Mafume added.

He said “for the avoidance of doubt”, preparations for the MDC congress were at an advanced stage and 6 800 delegates would attend.

“That process is irreversible. We shall hold a historic and joyous congress under the theme Defining a New Course for Zimbabwe,” Mafume said.

An MDC appeal against the High Court ruling has the effect of suspending the judgment, meaning the congress can proceed without any legal hindrances.

Probe team bleeds Zvimba RDC

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BY JAMES MUONWA

A TEAM of investigators dispatched to probe alleged underhand dealings at Zvimba Rural District Council (ZRDC) is reportedly draining thousands of dollars in cash from the already struggling local authority.

The six-member panel, appointed by Local Government minister July Moyo early this year, appears to have been given a blank cheque after its seemingly indefinite tenure was recently extended “until they complete the investigations to clean ZRDC”.

Sources told NewsDay that each individual was paid a $75 daily stipend in cash at a time the council was failing to effectively deliver municipal and other ancillary
services to residents of Murombedzi, Banket, Nyabira, Mt Hampden, Trelawney townships and surrounding farms.

Over and above the daily allowances, members of the commission of inquiry are reportedly entitled to fuel and are set to be paid a once-off $2 000 each upon completion of their work.

ZRDC chairperson Tsitsi Kaja confirmed the presence of the investigating team, although she declined to give further details regarding the commissioners’ allowances and terms of reference.

“I am meeting the team this afternoon (last week). I think the best person (sic) who can give you this information is the ministry. The investigation was initiated by the ministry and we are happy because it improves our systems,” she said.

Efforts to get comment from Local Government ministry secretary George Magosvongwe and outgoing Zvimba district administrator Andrew Tizora were fruitless at the time of going to print.

However, contrary to Kaja’s assertion that the council was unanimously behind the probe, insiders said the majority of councillors were opposed to it saying it was bleeding council.

War veterans warn Zanu PF over abuse, neglect

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BY JAMES MUONWA

The Zimbabwe National Liberation War Veterans Association (ZNLWVA) has come out guns blazing, accusing Zanu PF of patronising its membership during elections and then dumping them soon after.

Lamenting that its members continue to wallow in abject poverty, the former war combatants also demanded their share of top posts within the ruling party, presumably as a reward for their prominent participation in the November 2017 coup that toppled former President Robert Mugabe.

In a video recording of a meeting held at Karoi Country Club on Sunday, gleaned by NewsDay, ZNLWVA Mashonaland West chairperson, Cornelius Muoni bemoaned the deteriorating relationship between the ex-freedom fighters and Zanu PF, reiterating the bitterness was due to the continued abuse and neglect of his association’s members.

“How can there be a cordial relationship between us and Zanu PF when you look down upon us? This has led to the strained relations existing as we speak.

“We want to re-affirm our loyalty and respect for His Excellency (President Emmerson Mnangagwa). However, we put it across that war veterans are down-trodden and are languishing in abject poverty despite having fought for the country’s independence. This neglect has been the case for years, resulting in the ordinary people shunning us.

We’re suffering,” Muoni said.
ZNLWVA Mashonaland West further demanded that some senior Zanu PF posts be reserved for former guerilla fighters because they were the vanguards of the party.

Muoni alleged that some rich opportunists had infiltrated the party and leveraged on their wealth to secure top posts, thereby exposing Zanu PF to imperialists’
machinations.

Mashonaland West Provincial Affairs minister, Mary Mliswa-Chikoka, who represented Mnangagwa at the meeting conceded the discord and acrimony between government and war veterans, but challenged both parties to mend the rift.

“You are our eyes and ears and also our spokespersons in various communities. War veterans hear a lot of bad things about us as we are denigrated, but you have resolutely
remained behind us.

“Let us realise that economic saboteurs will tighten screws in a bid to destabilise the country.”

She added that Defence and War Veterans Affairs minister, Oppah Muchinguri-Kashiri had, through a recent letter, instructed her to identify a 500-hectare farm for allocation to ex-combatants inorder to improve their welfare.

Mliswa-Chikoka told the war veterans to fend off hunger by actively participating in the ensuing economic revolution, as espoused in Vision 2030, and augment their meagre
$200 government allowances through income-generating projects.

Last month, war veterans in Mashonaland Central raised similar concerns after they were sidelined during Independence Day celebrations in Bindura.

Ask Mangudya about fuel: Gumbo

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BY TATIRA ZWINOIRA/ VENERANDA LANGA

Energy minister, Joram Gumbo has revealed that President Emmerson Mnangagwa recently authorised the release of 20 million litres of fuel from government’s strategic reserves.

But Gumbo said the fuel released during last month’s Easter Holidays and Zimbabwe International Trade Fair (ZITF), has now been exhausted hence the current shortages, which has seen the re-emergence of long queues.

“I did explain that there was a huge improvement during the ZITF and Easter because I requested his Excellency (Mnangagwa) to allow me to release what we call ‘strategic fuel’ which is kept by the government and that is what I asked his Excellency. He allowed me and I released that into the market hoping that this would assist (Reserve Bank of Zimbabwe governor John) Mangudya,” Gumbo said.

“Industry must provide the forex so that they (Reserve Bank of Zimbabwe) can dish it out (to import fuel). I had released 20 million litres of fuel last time, 12 million litres of diesel and eight million litres of petrol, into the market from the strategic reserves of government. So you talk to Mangudya about the matter.”

He said enough fuel was already at the bonded warehouse in Mabvuku but in the absence of adequate foreign currency, the product will not be released on the market.

“Regarding payment of that fuel, it requires the Ministry of Finance and the Reserve Bank. It has nothing to do with me, so they are the people to talk to,” Gumbo said.

He also dismissed, as a social media hoax, reports that some companies were blending fuel at levels higher than the stipulated 10%.

“Blending is done by NOIC (National Oil Infrastructure Company) and when they do that they tell you how much blending they are doing. I don’t go for social media stories which mislead a lot of people,” Gumbo said.

Gumbo told Parliament that from today the country will begin to witness an improvement in the supply of fuel as fuel companies had been availed with foreign currency to purchase the scarce commodity.

“Government policy is that there should be enough fuel in the country, and our role as the Energy ministry is that we look for oil outside the country, but when it comes it is bonded and foreign currency is needed for oil companies to purchase it and my ministry is not involved in that,” Gumbo said.

“Today, I spoke to the Reserve Bank of Zimbabwe governor John Mangudya and he said that lines of credit had matured and big companies like Zuva, Engen, Sakunda and Puma have started receiving deliveries and from today, tomorrow and the following days there will be oil.”

The Energy minister said the oil stocks in the country can last for a full month, adding that there were two million litres of fuel in bonded houses and 23 days’ supply of diesel.

“We have ships in Beira that are pumping oil. So, the problem is not availability of oil — the issue is about forex to ensure that oil companies buy the oil,” he said.
Kadoma Central MP Muchineripi Chinyanganya (MDC) then asked Gumbo to explain government policy on blending fuel.

“We increase fuel by adulterating the original fuel with ethanol to make it more,” Gumbo said.

But Chinyanganya insisted blending meant that government had indirectly increased the price of fuel because if it further increased blending with ethanol by 5% or 10% then
it affected its strength and motorists end up travelling lesser distances with blended fuel than pure fuel.

“That assertion is not true. The issue is that we do the adulteration of fuel using renewable energy in order to enhance it,” Gumbo replied.

PG wants Chidakwa appeal dismissed

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BY CHARLES LAITON

Prosecutor-General (PG) Kumbirai Hodzi has approached the High Court seeking an order to dismiss former Mines minister Walter Chidakwa’s application for review of his criminal abuse of office trial.

In January, Chidakwa approached the High Court seeking an order to stop his trial at the Harare Magistrates’ Court pending a determination of his review application, but has not pursued the matter, prompting Hodzi to seek its dismissal.

The ex-Cabinet minister was arrested in 2017 on allegations of criminal abuse of office after he appointed then Mines ministry secretary Francis Gudyanga as the sole board member of the Minerals Marketing Corporation of Zimbabwe (MMCZ).

In his earlier application, Chidakwa said he was seeking a review of a Harare magistrate’s decision to throw away his application to stop State attorney Zivanai Macharaga from prosecuting his case.

However, Hodzi’s representative Richard Chikosha recently filed an affidavit urging the High Court to dismiss Chidakwa’s application.

“On January 7, 2019, the first respondent (Chidakwa) made an application for review under case number HC70/19 and served it on the applicant (PG) on the same date. The
application did not have the court aquo’s record of proceedings and it was only availed to the applicant on February 1, 2019 and the applicant filed his notice of opposition on February 11, 2019 and served it on the respondents on the same day,” he said.

Chikosha further said after receiving the notice of opposition, Chidakwa did not file an answering affidavit or set down the matter within a month of having been served with the PG’s papers.

“It appears the first respondent is not desirous to prosecute his application for review and that the application was simply made as a way of trying to frustrate the due administration of justice. Wherefore, it is prayed that the review application filed by the first respondent on January 7, 2019 be dismissed for want of prosecution,” he said.

The matter is pending.

Mandiwanzira loses bid for permanent release of passport

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BY DESMOND CHINGARANDE

A HARARE magistrate yesterday dismissed an application for the permanent release of former Information Communication Technology (ICT) minister Supa Mandiwanzira’s passport, saying the request was based on lapsed documents.

Mandiwanzira, who appeared before deputy chief magistrate Elijah Makomo, is accused of criminal abuse of office after he allegedly appointed his personal assistant Tawanda
Chinembiri to the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) board.

Mandiwanzira, who was represented by advocate Thembi Magwaliba, wanted his passport released permanently due to changed circumstances after he was recently acquitted on
another charge of unprocedurally awarding a contract to Megawatt Company to do consultancy for State mobile network operator NetOne.

While applying for the release of the passport, Magwaliba said Mandiwanzira intended to travel to India for medication.

But Makomo, in his ruling, said the ex-minister failed to support his request after he filed lapsed documents.

“There is no way this court will determine the application basing on the old application since it indicates dates which came and passed by. The dates are no longer relevant because they can’t support the existing request,” Makomo ruled.

“The accused submitted that he intends to attend (an) e-learning summit. A quick look at the invitation shows that it was extended to the accused in October last year.”

The magistrate said it was common cause that he was ICT minister, but no explanation was made to show if the invitation was extended to him in his personal capacity or as minister.

“Nothing will stop him to travel on his personal capacity if he intends to attend, but what’s crucial is that the conference is to be held six months from now, showing the
passport will be required later. No sufficient reasons were given to establish the importance of the release of the passport. In these circumstances, the application is,
hereby, dismissed,” Makomo ruled.

Prosecutor Michael Chakandida had alleged Mandiwanzira’s intention was to flee the country, just like other former ministers who are on the run after accessing their passports.

The prosecutor further alleges that the invitations were for March and April, saying the time had lapsed.

Mandiwanzira told the court that he wanted to go for medical treatment in India and also that he had lost business due to the State’s refusal to release his passport since
his business required him to travel frequently. The matter was remanded to June 3 for trial.