An Ireland-based international human rights organisation, Frontline Defenders, has challenged President Emmerson Mnangagwa’s government to drop charges against seven local activists arrested in May last year after attending a capacity-building workshop in the Maldives.

By Everson Mushava

The seven activists are on bail on charges of receiving training to overthrow a constitutionally-elected government. They will be back in court tomorrow after the court on January 8 rejected their appeal to have their bail conditions relaxed.

They were arrested between May 20 and 27, 2019, on landing at the Robert Gabriel Mugabe International Airport in Harare.

The workshop was hosted by the Centre for Applied Nonviolent Action and Strategies and focused on peaceful resistance, but government claimed that the activists had received training in civil disobedience.

But Frontline Defenders, in a statement yesterday said: “Frontline Defenders calls on the Zimbabwean authorities to immediately drop the charges against seven human rights defenders facing prosecution on fabricated charges.”

Its chief executive director Andrew Anderson said he was worried that Mnangagwa’s government, despite the hopes that people had in it, was emulating Mugabe’s toxic human rights record.

“We have a new wave of attacks targeting human rights defenders and civil society in 2019 in Zimbabwe as the first post-Mugabe government seemingly is following its predecessor’s playbook, despite the real hopes of the population in the wake of Mugabe’s removal from power. The case of the seven activists is a major litmus test for the direction Zimbabwe will go in 2020 and beyond. We call on the authorities to quash the charges immediately,” Anderson said.

GWERU residents have threatened to boycott paying rates after the council started implementing a $1,8 billion budget which was allegedly smuggled to the Local Government ministry without their consent.

BY BRENNA MATENDERE

Residents have threatened to resist paying bills until council justifies how it came up with a $1,8 billion budget — a massive jump from last year’s $46 million — and why it has started implementing it before approval by the parent ministry.

The 2020 budget has already seen services being hiked sharply with burial fees having been scaled up from $80 to $1 097 while council-owned two-roomed houses in Mkoba where tenants were paying $40 per month now have to fork out $600. Occupation certificate fee for home seekers was raised from $30 to $5 000 while beacon relocation costs went up to $9 000 from $150.

A fuel service station licence that is renewed annually rose from $3 000 to $84 000. Yearly licence fees for surgeries are now $40 000. Taxi licence fees rose from $85 to $1 419 per year.

In a letter addressed to acting town clerk Vakai Chikwekwe dated January 20, Gweru Residents and Ratepayers’ Association (GRRA) director, Cornelia Selipiwe, demanded an explanation on how the council arrived at the figures.

The letter obtained by Southern Eye yesterday, was copied to Midlands Provincial Affairs minister Larry Mavhima.

“We request justification for tariffs figures in the budget and detailed breakdown of expenditure items for 2020 budget statement,” wrote Selipiwe.

He also asked the acting town clerk to justify exclusion of revenue incomes that will be received by council from different institutions like the government.

“We note the failure by council to identify income from other sources, for example capital expenditure grants from common sources eg Zinara, government grants, public private partnership deals and loans from banks that the council will access. We demand justification for the exclusions and a possible explanation as to whether the council is not expecting anything,” the letter read.

The GRRA leader also took Chikwekwe to task over implementing the budget before it its approval by Local Government minister July Moyo.

“We request justification of implementing the proposed budget statement eg the ongoing levying of trading and health licences before its (budget) approval which is in contravention of the Urban Councils Act (Chapter 29:15) Section 288.”
Contacted for comment yesterday, council spokesperson, Vimbai Chingwaramusee said: “The council held budget consultative meetings with stakeholders and residents so that they can give their input. So that is what came out of the budget consultation meetings. We adjusted the budget in line with the prevailing economic situation.”
However, Selipiwe said the residents never agreed to the high figures in the budget.

“Our worry is also that council did not reveal income from its sources such as grants and money it will get from its premises like residential flats that it is leasing. Also the budget sent to the minister with high figures . . . is not the one which was presented to us during pre-budget consultations in wards,” he said.

A LEGAL battle between Old Mutual, the South African-based pan-African investment, savings and insurance group, and its chief executive officer Peter Moyo has dominated news headlines in the country for the past eight months.

The drama has involved vitriolic public attacks, numerous court cases and claims and counter claims from both parties. It is seldom that such extensive publicity is given to the dismissal of a chief executive of a listed company and to the inner conflicts in a company. These matters are usually resolved internally.

The publicity given to the Moyo saga has brought to the fore some important lessons that should be noted by company directors. The first is about what it says about directors disclosing conflicts of interest. The second is about how tricky it is to reinstate a director once they have been dismissed. In my research I found a few cases where courts have indeed reinstated executive directors. But the process is complicated because relationships have invariably turned sour.

The other useful lesson is what the Old Mutual events tell us about the role of directors – even after they have been fired. Based on my research findings I argue that directors still owe certain duties to the company, such as loyalty, even after they are fired. And that sticking to company policies on engagement with the media is the wise thing to do.

How the saga unfolded

In the middle of last year Old Mutual dismissed Moyo as its CEO because of a breakdown of trust and conflict of business interest. The action was taken because of questions around a dividend payment by an investment firm co-founded and partly owned by Moyo.

A month later a judge ordered Moyo to be temporarily reinstated. But Old Mutual refused to allow him access to his office pending its appeal of this decision. Moyo then launched an application to hold the Old Mutual board in contempt of court.

Early this year a full bench of three judges held that Moyo had been properly dismissed.

The sorry saga isn’t over yet. Moyo is insisting on his reinstatement and is appealing the judgment. He is also continuing with an application for contractual and reputational damages, a contempt of court application and an application to declare the entire Old Mutual board delinquent.

The lessons

The Moyo saga highlights the importance of a director’s duty to disclose any conflict of interests. The Companies Act sets out the rules relating to the disclosure of a director’s personal financial interests in the company’s business.

Directors are in a fiduciary relationship with their company. This means that they must act with loyalty and in good faith. They must not put themselves in a position where their personal interests conflict with their duties to the company. If they have personal interests in a particular matter, they must disclose them to the board. And after disclosure they must not take part in board decisions relating to that matter.

Failure to comply could have serious consequences. For instance, it could render the entire transaction invalid.
Another lesson to be learned from the Moyo saga is that it’s complicated to reinstate executive directors. I did find cases in my research where courts had indeed reinstated executive directors. But the close relationship between a board and an executive director makes it tricky.

The position of a chief executive of a company requires a special relationship of trust and confidence. Old Mutual said that it had lost trust and confidence in Moyo because of his conflict of interest. Moyo in turn said that he lost trust and confidence in the chairman and the directors. He said publicly that he was taking action to have the entire Old Mutual board declared delinquent.

Because of the clear breakdown in trust and confidence, the court said that there was no realistic prospect of Moyo ever being reinstated.

In another case the Constitutional Court also did not reinstate two directors who had been unlawfully dismissed by the Minister of Defence and Military Veterans because it found that their relationship had disintegrated beyond repair.

A court will not readily order the reinstatement of a director where the relationship with the board has broken down. If directors wish to be reinstated after leaving, they must demonstrate that their relationship with the company is still viable.

The dos and don’ts, even after leaving

The other reason Old Mutual cited for losing trust and confidence in Moyo was that he had given public interviews to the media after his suspension in which he criticised Old Mutual. The company said these negative statements breached its media policy and harmed its reputation. It also said that Moyo acted against its interests and that he had not acted according to the standards expected of a chief executive, even though he had been suspended.

Negative publicity about a company can discredit it, and harm the directors’ reputation. It can also affect the company’s share price. The negative publicity suffered by Old Mutual caused its share price to drop by as much as 9,3%.

As fiduciaries, directors must act in good faith and in the best interests of the company. South Africa’s corporate governance code — King IV — recommends that directors should act ethically, beyond mere legal compliance, and that directors should set the tone for an ethical organisational culture.

As I found, even after a director leaves his company, he still owes certain fiduciary duties to the company, such as the duty of loyalty.

Directors should be careful not to breach their company’s media policy — if there is one — even after they leave the company. They should exercise caution in the public statements they make about the company. Making negative statements can lead to the relationship breaking down even further, making their reinstatement impossible. It could also limit their chances of being appointed to other boards because of the fear that they may again harm the company’s reputation.

Rehana Cassim is an associate professor in company law, University of South Africa. This article first appeared on The Conversation.

THE Zimbabwe Revenue Authority (Zimra) says it surpassed its net revenue target by 24,65% to register $23,19 billion in the 2019 fiscal year, largely as a result of inflationary pressures.

BY BUSINESS REPORTER

Zimra had originally targeted net revenue collections of $18,6 billion for 2019. However, the continued devaluation of the Zimbabwe dollar (ZWL) has brought back hyperinflation.

The tax collector’s 2019 annual report says during the fourth quarter, the authority collected net revenue amounting to $11,71 billion against a net revenue target of $7,95 billion which was 47,27% above target.

“On a cumulative annual basis, the authority collected net revenue of $23,19 billion against a target of $18,60 billion for the year ending December 31, 2019 (24,65% above target). The net revenue to GDP (gross domestic product) ratio for the year 2019 stood at 18% against a regional average ratio of 15%. The authority will continue to implement voluntary and enforcement compliance strategies in order to increase this ratio,” Zimra board vice-chairperson Josephine Matambo said.

“The net revenue collected in quarter four of 2019 grew by 651,29% in nominal terms compared to the same period in 2018. In real terms net revenue collections during quarter four of 2019 grew by 11,44% from the same period last year. Generally, all revenue heads recorded growth in nominal terms which is a reflection of both inflationary pressures and the authority’s revenue collection and enforcement strategies.”

With the Zimdollar continuously devaluing due to insufficient foreign currency and weak market confidence, businesses are raising prices constantly to preserve the value of their goods or services.

This has seen Zimra seemingly benefitting as a result due to the higher margins.

The major tax heads for 2019 were excise duty which contributed 17,75% to net revenue collections, gross VAT sales (16,14%), individual tax (14,8%), and company tax (13,74%).

Matambo said the positive revenue performance was also partly attributed to several revenue enhancement measures that the authority implemented throughout the year.

These measures include a compliance management programme, registering 5 400 new taxpayers, which increased the tax base to 172 497, intensified debt recoveries and special revenue projects strengthening risk-based industries and sector audits on specific tax heads.

“Revenue performance remained positive throughout the year, surpassing revised targets despite the volatile operating environment. With the anticipated GDP growth of 3% in 2020, the authority is optimistic that the annual target of $57,58 billion for 2020 will be surpassed,” Matambo said.

GOVERNMENT and the European Union (EU) have launched a project that will see Zimbabwe access 80% of goods from the EU with no tariffs, making them cheaper.

BY TATIRA ZWINOIRA

The EU has set aside €10 million to support the implementation of the project called the Zimbabwe Economic Partnership Agreement Support Project (Zepa) which was launched yesterday. The agreement comes as trade with the EU forms only about 5% of Zimbabwe’s total trade.

“The EU has liberalised all exports, there is a duty-free, border-free access to all Zimbabwean produce to enter the European market. But, the WTO (World Trade Organisation) also demands reciprocity which means that Zimbabwe also needs to liberalise its market for European imports,” EU Ambassador to Zimbabwe Timo Olkkonen told NewsDay Business shortly after the launch of Zepa.

“And, the 20% imports relate to the amount of protection that Zimbabwe can have as establishing tariff lines, so Zimbabwe over the years will liberalise 80% of its trade and 20% of imports will be protected. So, with imports from the EU, 20% can be protected with tariffs and then 80% can be liberalised. This is not a demand that comes form the EU but from the WTO.”

He added: “Zimbabwe has a huge, huge, trade deficit. But, in fact, the trade between the EU and Zimbabwe is in favour of Zimbabwe. So, Zimbabwe is exporting more than it’s importing from the EU. It is not huge amounts, but horticulture is growing. If I remember correctly, the trade balance is around €150 million positive for Zimbabwe for 2017 or 2018”.

The overall objective of Zepa is to enhance Zimbabwe’s integration into the regional and international trading system and to increase the volume of exports between the EU and Zimbabwe. Through the €10 million grant, the EU will support Zepa through supporting policy improvements, improved trade facilitation and competitiveness and export capacity for small to medium enterprises.

A 37-YEAR-OLD Wedza man is battling for life at Parirenyatwa Hospital in Harare after he was accidentally shot on the neck by a police officer who was driving away imbibers from a beerhall at the weekend.

BY JAIROS SAUNYAMA

Fungai Madziro was rushed to Mt St Marys Mission Hospital in Wedza where he was immediately referred to Harare after his condition deteriorated.

According to a computed tomography scan report shown to NewsDay, the bullet entered “zone 2, anterior neck and exited above the scapula on the left side”.

Witnesses said at around midnight on Sunday, some police officers were on patrol when they entered Gehena Beerhall at Wedza Centre and ordered the patrons to leave as it was late into the night. It is alleged that chaos erupted before a police officer identified as Chief Inspector Ndodzo snatched a pistol from his colleague and shot randomly, injuring Madziro who was already outside the building.

Ndodzo is the officer-in-charge at Wedza Police Station.

The matter was reported at Wedza Police Station under CR101/01/20.

Efforts to get an official comment from police in Mashonaland East were fruitless, but sources said the top cop accidentally discharged the firearm, resulting in Madziro being shot.

Madziro’s cousin Tendai told NewsDay that police had not been helpful since the shooting incident.

“I am the one who is running around and the police are not even helping at all, let alone admitting that their boss shot my brother. The bullet ripped through his neck and we are in dire need of financial assistance. He is critical and no one is coming to our aid,” he said.

NEW kid on the political scene, the People’s Party (PP) fronted by former Tourism minister Walter Mzembi has been dealt a body blow after one of its top executives, Vince Musewe, pulled out hardly a month after the formation of the opposition grouping.

BY BLESSED MHLANGA

Musewe, who had been appointed as the party’s secretary for research and economic affairs, resigned just a few weeks after his appointment, saying the risk benefits were not worth his while.
Party secretary-general Lloyd Msipa confirmed the fallout which he said was driven by Musewe’s desire to get paid for holding the post.

“We are looking for membership not mercenaries; this is a people’s project and we could, therefore, not pay him for belonging to the party,” Msipa said.

The party alleged that Musewe indicated that he would be taking a huge risk being the only member in senior leadership representing the party from Zimbabwe and therefore, wanted an allowance for the risk he was taking.

“He said he was going to be vocal and this would affect his other sources of income, therefore, he needed to be paid. The party is not about that, so we parted ways, but it’s important for me to note that it was him who came to us expressing interest in holding that position.”

Musewe confirmed he had left the party, but denied allegations that he had demanded payment.

“Please note, I have withdrawn my membership from PP. The risk benefits are not worth my while at this stage,” he said.

Mzembi, who was part of the Zanu PF G40 faction ousted from power and the party through a military coup in 2017, formed the party in exile with the hope of pushing the current leadership of President Emmerson Mnangagwa out of power in 2023.

THE catastrophic situation in public health facilities has played out for too long with no plausible solution in sight, well until the Higher Life Foundation offered an olive branch albeit for only six months. For over four months, patients were turned away as the facilities grappled to stay open in the absence of doctors.

Incapacitation/ downing tools

On September 3 last year, doctors affiliated to the Zimbabwe Hospital Doctors Association (Zhda) led by Peter Magombeyi downed their tools citing incapacitation brought about by a myriad of grievances which included remuneration.

In a letter, the doctors said, “This letter serves as a notice that starting from the 3rd of September this year, doctors at Mpilo, Bulawayo United, Parirenyatwa Group, Harare and Chitungwiza Central Hospital are not going to report for work. We simply do not have the means to continue coming to work because the salary is not sufficient.”
However, the government tried to negotiate with doctors offering a 60% pay rise but they notified their employer of their intention to embark on a job action after rejecting the offer which they termed meagre and unable to cater for their basic needs.

This was to mark one of the longest industrial actions ever carried out by medical personnel in the country. It not only exposed government’s weak commitment to its workers, but also drove the public health facilities further into the doldrums.

What were their issues?

Besides having their salaries pegged in US dollars, the doctors were also unhappy about their working conditions. For years they soldiered on with meagre resources and equipment. As the situation deteriorated, the hospitals no longer had basic drugs like painkillers, latex gloves and even bandages.

In a meeting with Health minister Obadiah Moyo, the doctors narrated how they were watching patients die as they could no longer contain the situation. Horrifying tales of babies dying and used bandages being re-used were told, but the government did not step up and finally the doctors said they could no longer come to work .
Doctors have been downing tools for years over the same issues and each time the health delivery system was further compromised with the patients bearing the brunt of the standoff. This perennial situation has caused what many are now terming a “soft genocide” with one unfortunate incident where a woman died together with her child while in labour at Parirenyatwa Group of Hospitals.

Government’s response?

However the situation remained basically the same, with largely the army and some retired doctors stepping in to assist with services.

The government, with regards to the strike and the dire situation, has not been very forthcoming. It went as far as using repressive State means to try and repress the strikes. Government imposed a ban on the strike by nurses amid reports they were State agents who would call and threaten doctors that in case they went ahead with the strike they would face the wrath of the employer but should instead accept whatever increment they were being given.

The Health Services Board was ruthless in its approach and went as far as firing all the striking nurses and doctors, accusing them of not being patriotic enough.

In-between, there was the usual threats, and the dramatic abduction of the doctors leader Magombeyi. All this was done to cower the doctors into submission, but they remained resolute.

Higher Life Foundation offer

Then the Higher Life Foundation offered to help. Initially the doctors rejected the offer citing government interference. This clearly showed the level of mistrust which is detrimental to any form of development.

Government has earned a bad reputation of either backtracking or totally refusing to accept responsibility. Which is exactly why this situation repeats itself over and over.

But now the doctors have gone ahead to accept the six months fellowship offer which was put on the table again by the Higher Life Foundation.

With over 900 doctors applying for the fellowship, this has exposed the government’s failures to come to terms with its employees.

According to Econet Wireless founder, Strive Masiyiwa the fellowship was focused on ensuring sustainable and resilient communities and that could only be achieved through doctors offering quality healthcare to patients.
The offer stipulated that senior consultants for a duration of six months would acquire a non-negotiable monthly subsistence allowance of $10 000 and junior consultants also for the same period would get a non-negotiable monthly subsistence allowance of $7 500.

Other benefits consisted of a VAYA carpool voucher for use on normal working days and would help with easy access to hospitals while on call. This offer comes in as a bridging gap to try and reconcile the doctors with their employers.

Post-fellowship?

However, this is a period where government is supposed to come up with sound policies on how to restore the health sector as its arrogance will ensure that this opportunity will be in vain.

After six months then what? The situation may improve for now and offer respite to patients, but this is just a charade because the underlying causes will still be there come end of fellowship.

What is very apparent to all is that there is need for massive funding to the health sector, which is one of the critical areas in the country. Not many people can afford international medical care like the government officials.
Prioritising expenditure will also save a lot of resources which can be re-directed to critical sectors like health.

The government also needs to drop its arrogant and militant response to the grievances by health workers, and employees in general, which are all pertinent – and solve the crisis once and for all.

 Lorraine Muromo is a journalist. She writes in her personal capacity.

RENOWNED filmmaker Manuel Matsinye of Megacom Pictures has partnered Jibilika Dance Trust to boost the filmmaking classes that he introduced last May in a move that will see interested individuals paying US$5 or an equivalent amount in local currency per month.

BY TAFADZWA KACHIKO

The classes, which pay particular attention to acting, have been branded Megacom/Jibilika Film Classes and will incorporate production, directing, editing and scriptwriting.

Matsinye told NewsDay Life & Style that although learners would be paying, there was high probability of benefiting financially from class projects whose funds would be sourced by Jibilika while the facilitators would also be paid.

“We are now expecting participants to pay a nominal commitment fee of US$5 which is payable to Jibilika. Our aim is to produce 20 youths annually who will make waves not only in Zimbabwe but even beyond. We don’t want deadwood.

There will be different classes but our major focus will still be acting,” he said.

“The two-year contract I have signed with Jibilika will see us embarking on funded projects where participants will benefit financially. The projects will be shaped by Jibilika’s focal areas.”

Lessons, which have been taking place at Life Long College in Harare, will now be held at Batanai Gardens every Tuesday, Thursday, Friday and Saturday from 5 to 7pm.

Matsinye described the 2019 classes as a success as he managed to groom a lot of artists that include Tyra “Madam Boss” Chikoko.

ORGANISERS of the Intwasa Arts Festival KoBulawayo early this week held a consultative meeting in preparation for this year’s fest slated to run from September 20 to 27.

BY SHARON SIBINDI

Stakeholders concurred during the meeting that the festival needed to rope in quality acts that will add value to the fiesta and come up with standards that all participating artists should adhere to.

Speaking on the sidelines of the meeting, festival administrator, Runyararo Mutandi , said they were happy with the feedback they received.

“We will continue to engage with more stakeholders throughout the year as we plan for the 2020 edition of the festival. Some of the keynotes we got included the need to grow audiences, have diverse programming that will attract diverse audiences, encourage international or acts from outside Bulawayo to network with local artists so as to share experiences,” she said.

Mutandi said there was also need to have more community engagement programmes.

“There is need to increase visibility of the festival, more marketing and publicity and further develop the schools programme. We also need to revive the main stage (City Hall car park) as it’s the nerve centre of the festival,” she said.

Patience Phiri, one of the stakeholders, applauded the organisers for setting up the meeting.

”Intwasa Arts Festival 2020 promises to up the notch, should resources be available. Fingers are crossed for a funny and exciting Intwasa experience,” she said.