BY FIDELITY MHLANGA /TAFADZWA MHLANGA

PRESSURE to finance the importation of grain, electricity, fuel and agricultural inputs is expected to push the government to print money to buy foreign currency and increasing money supply, a stock broking firm has said.

The southern African nation is in the throes of its worst economic crises in a decade with biting shortages of foreign currency, grain, fuel and rolling power cuts that last up to 20 hours a day.

Last June, authorities ended the 10-year use of multi-currency regime by reintroducing the Zimbabwe dollar, the sole legal tender, which is fast-losing value since then.

In its 2020 economic outlook report, Morgan & Co said it envisaged the parallel market rate to continue moving northwards.

“Our assessment is that controlling money supply growth will be a mammoth task given a number of economic realities. Firstly, foreign currency shortages continue to loom and there is a high propensity of imports among economic agents, government included,” the stock broking firm said in a research note.

“Secondly, the drought in Zimbabwe will require Treasury to create new money. Finally, the government still has strong appetite for foreign currency given the need to finance agriculture, farming inputs, energy imports (fuel and electricity). This huge appetite or demand will likely to push the parallel market exchange rates ($70 to US$1) and this will have a pass through effect on pricing and inflation. Given the shortages of foreign currency in the broader economy, we contend that the RBZ (Reserve Bank of Zimbabwe) will be forced to print money so as to finance foreign currency purchases.”

Money supply as of July 2019 increased 62% year-on-year to $17 billion driven by profits or realised foreign exchange gains.

“The formal exchange rate has moved from 1 to 17. The redenomination of the foreign currency positions into local currency resulted in inflated balances, hence the increase in money supply,” the firm said.

Morgan and Co firmly believes Zimbabwe is following the steps of Venezuela, a situation that might worsen the former’s economy.

“Venezuela unveiled the Sovereign Bolivar to tackle hyperinflation in 2018, with two coins and paper denomination ranging from 2 up to 500 Sovereign Bolivars. The continuous economic decline in Venezuela has resulted in the country issuing new 10 000, 20 000 and 50 000 bills to make payment ‘more efficient’ and ‘facilitate business transactions’. Zimbabwe on the other hand, introduced the bond note in 2016 which was pegged 1:1 against the US dollar. However, the deteriorating macro-economic environment has resulted in the parity being disbanded in February 2019.”

The research firm said the long-standing hyperinflation in Venezuela also triggered expectations of higher inflation in Zimbabwe in 2020 given the strong similarities.

“We note that the main difference between Zimbabwe and Venezuela has been that monetary authorities in Zimbabwe have been tightening money supply or liquidity and this phenomenon has also contributed to wide spread poverty. The strategy has been to maintain the growth of money supply between 8 and 10% thus anchoring inflation pressures,” it said.

The company added that the inflationary pressures being experienced in Zimbabwe and Venezuela were being caused by the depreciating currencies in both countries.

“Depreciating currencies in both Zimbabwe and Venezuela have led to inflationary pressure. In September 2019, Venezuela’s annual inflation rate topped 39 113,8%. Meanwhile the International Monetary Fund (IMF) projects a rate of over 200 000% for 2020. We note that Venezuela’s hyperinflation woes are hinged on the performance of the price of the oil. Oil accounts for 96% of the country’s exports and the collapse of the crude oil prices in 2014 resulted in a foreign currency crisis,” it said.

“Further, the introduction of a currency peg, installation of the import controls, the nationalisation of other industries and the establishment of subsidies for food and consumer goods were also driving factors in the country’s inflation problems. Similarly, Zimbabwe’s output increased the country’s dependence on imports.”

BY NIZBERT MOYO

Communities in Matabeleland North province have partnered with government to construct health infrastructure, with 12 clinics already built in Binga South.

Matabeleland North provincial medical director Purgie Chimberengwa confirmed the development on Monday, saying 12 clinics have been built in Binga South and these would soon be handed over to the Health ministry.

“It is, however, a good gesture for communities to actively participate in the delivery of health through infrastructure development. As the Ministry of Health and Child Care, we will partner the communities to deliver quality and equitable health,” he said.

Binga South legislator Gabbuza Joel Gabuza (MDC Alliance) said villagers contributed cash, material and labour towards the project.

“We started the construction of clinics in two phases, whereby villagers contributed $5 each. After realising that the idea of cash contributions was no longer viable, villagers mobilised materials and moulded bricks in phase two,” he said.

“I chipped in with the other building material using Constituency Development Funds, which (were) given in three phases.’’

Some of these clinics are Simbala, Malaria, Mupambe, Lubanda and Munde.

“Clinics are a major challenge here because some villagers travel more than 60km or even more to reach the nearest clinics. We want to close that gap and hope to create employment in the health sector,” he said.

BY NQOBANI NDLOVU

DETHRONED Chief Nhlanhlayamangwe Ndiweni of Ntabazinduna, Matabeleland North, has left the country for the United Kingdom for a cataract operation, Southern Eye has heard.

Cataract surgery is a procedure to remove the eye lens and, in most cases, replace it with an artificial or a clear synthetic version.

The operation is carried out to clear the clouding of the lens inside the eye which causes blurred vision.

Ndiweni, who recently underwent eye surgery in Bulawayo, left for the UK on Saturday on the advice of doctors, his spokesperson Nothiwani Dlodlo said yesterday.

“Yes, he left for the UK on medical grounds. His doctors said he needs an urgent cataract surgery,” Dlodlo said.

In earlier tweets, Ndiweni confirmed undergoing surgery in the city last week, adding he will also use the time to write President Emmerson Mnangagwa a short letter.

“Thank you all for the prayers and support! As I lay in surgery and grappled with the likelihood of losing my sight, I thought of all the things I should have done with it. One of those things, which, thanks to God’s mercy, I will do now is write a short letter to @edmnangagwa,” Ndiweni tweeted.

“Yes, recently my doctors advised that there is nothing more they can do for my sight in http://Byo. At the insistence and expense of some Ntabazinduna villagers and colleagues I am en-route to UK for an emergency operation.”

Ndiweni is challenging his removal as Ntabazinduna Chief by the Local Government ministry which has claimed that his chieftainship was being contested by his elder brother, Joram who says he is the heir apparent.

The ministry also stripped Ndiweni of all benefits accruing to him.

The government, through Local Government permanent secretary Zvinechimwe Ruvinga Churu, has filed a notice of opposition challenging Ndiweni’s application, arguing that his removal was lawful.

The matter has not yet been set down for hearing.

BY BRENNA MATENDERE

BULAWAYO High Court judge Justice Martin Makonese has described some lawyers as incompetent and unethical in the manner they prepare litigants’ cases, thereby causing miscarriage of justice.

Speaking at the official opening of the first term of the Gweru High Court circuit on Monday, Justice Makonese said some lawyers deliberately caused delays in the completion of cases by continuously making requests for postponements.

“I must also publicly make it known to all that some of the delays in the finalisation of cases particularly civil cases is caused by litigants and legal practitioners who set down cases for trial, only to postpone them on the day of trial,” Justice Makonese said.

“The reasons normally given for requests for postponements are that lawyers have just assumed agency and are not ready for trial. In other instances, litigants with hopeless cases pretend to seek time to settle the matter out of court, only to indicate that they are not amenable to a settlement.”

He warned that judges would soon be forced to approach the Law Society of Zimbabwe to complain over the conduct of some lawyers. “It is unethical and unprofessional for a legal practitioner to appear in court unprepared. In some cases, lawyers appear in court without taking adequate instructions from their clients. This practice is not fair to the litigants and to the court. In appropriate circumstances, judges shall report cases of unethical conduct to the Law Society of Zimbabwe for appropriate action,” Justice Makonese said.

He lauded the Hwange High Court for diligently handling last year’s cases.

“At the Hwange High Court circuit, a total of 39 cases were referred for trial during the year 2019.

“Of these, 20 matters were finalised. The remaining pending cases will be handled during 2020. In general, therefore, the disposal rate of cases at Hwange High Court circuit is fairly satisfactory,” the senior judge added.

BY DESMOND CHINGARANDE

A HARARE transport operator, Ephraim Mujawo, has approached the High Court seeking release of his seven 30-tonne trucks which were impounded by police last month after being suspected to have been stolen.

Mujawo claimed that the State withdrew the case on January 21 for lack of evidence, but police have refused to release the vehicles.

In his urgent chamber application to the High Court, Mujawo cited one Detective Sergeant Muuya and Mukura, officer-in-charge Vehicle Theft Squad Nzirawa, Police Commissioner-General Godwin Matanga and Home Affairs minister Kazembe Kazembe.

Mujawo, through his lawyer David Ngwerume, said the police had no legal basis to continue holding onto his trucks after failing to prove that they were stolen property.

He added that the continued seizure of the trucks was financially bleeding his company.

He claims that after failing to prove the alleged theft, police on January 14 advised that they would continue holding onto the vehicles.

The matter was initially handled by Harare magistrate Barbara Mateko under case number CRB03/20 before the State withdrew the charges before plea, but police refused to release the trucks, according to Mujawo’s lawyer.

The police are yet to respond to the application.

BY CHARLES LAITON

Zanu PF secretary for legal affairs, Munyaradzi Paul Mangwana and his wife Pauline have approached the High Court with an application seeking to file an additional affidavit in the on-going matter in which they were dispossessed of a Glen Lorne property after paying US$260 000 for it.

The couple’s claim to the property, known as stand number 2157 Glen Lorne Township 30 of Lot 30 of Glen Lorne, which they acquired through the Sheriff of the High Court, recently came under scrutiny after Justice Clement Phiri cancelled the sale and allowed the original property owners, David and Kumbula Chiweza, to lodge their objection to the sale in terms of the law.

“I submit that in the interest of justice and for the benefit of the court applicants (Munyaradzi and Pauline Mangwana) be allowed to file a further affidavit in HC10007/19. My submission is premised on the fact that, at the time of filing of the notice of opposition, the fourth respondent’s (sheriff) ruling was not in existence and as such could not be incorporated therein. The ruling was only served on applicants after the notice of opposition and opposing affidavits had been filed,” Mangwana said in his founding affidavit.

“In light of the above, applicants contend that they ought to file a further affidavit to address and alert the court of the fourth respondent’s decision which has a bearing on the proceedings under case number HC10007/19 and same will assist the court in making a judicious decision.”

According to court papers, prior to the sale, the house belonged to the Chiwezas whose company, Watson Investments (Pvt) Ltd, had loan issues with CBZ Bank amounting to US$207 203.
When the bank took the Chiwezas to court, judgment was entered against the couple leading to the property being surrendered to the sheriff for sale.

Apparently, when the sheriff conducted the sale, David and his wife were not advised and could not lodge an objection. It was only after the house had been sold that the couple became aware of what had transpired.

The Chiwezas said the sale was glaringly irregular. Justice Phiri then ruled in their favour, but Mangwana argues that the Chiwezas’ application for review in HC3113/17 was heard in
default.

“Following the granting of the application for review the first and second respondents (David and Kumbula Chiweza) complied therewith by lodging with the sheriff their request to set aside the sale in execution as directed by the court,” Mangwana said, adding they duly opposed the same and thereafter both parties appeared before the sheriff for oral submissions and ruling was reserved.

On January 15, 2020, the Chiwezas filed and served their answering affidavit and heads of argument for which the Mangwanas also sought leave to file an additional affidavit.

BY DESMOND CHINGARANDE

THREE Harare City Council (HCC) employees have been arrested for allegedly defrauding their employer of US$765 000 after selling State land to unsuspecting home seekers in Kuwadzana high-density suburb.

Believer Mupawaenda (46), Rudo Chigocha (45) and Margaret George (31) appeared before magistrate Rumbidzai Mugwagwa, who remanded them to March 3 on $1 000 bail each.

Mupawaenda and Chigocha are attached to the department of housing and community services, while George is with the department of works.

Allegations are that between 2017 and 2018, the trio hatched a plan to defraud the City of Harare after identifying open spaces in Kuwadzana 3, 4, 5 and 6.

They allegedly created fictitious paying schemes and originated fake layout plans before they fraudulently connected water for the purpose of selling the 150 stands to home seekers.
The State alleges that a total of 150 stands were sold by the accused persons to homeseekers without council’s approval.

To cover up their tracks, the accused persons allegedly generated fraudulent provisional allocation letters and files for each stand.

The alleged forged documents were recovered from Chigocha.

The State further alleges that old, cancelled stand numbers were used to illegally allocate the said stands and George illegally connected water supplies to the stands.

A whistleblower blew the lid off the scam, leading to the arrest of the trio on January 27 this year.

The State alleges that as a result of the trio’s actions, the council was prejudiced of US$765 000, being the value of the 150 residential stands.