Though members of the Movement for Democratic Change had criticised the government for years for spending money on luxury cars, they couldn’t say no when they were offered new US$50 000 E280 Mercedes Benz cars.
Only Education Minister David Coltart turned down the offer.
And the excuse for taking up the offer!
“I have not bought any cars for anyone… We either had to leave them to rot or sell them, and get half their value. It was cheaper to keep them. It was a matter of practicality,” Finance Minister Tendai Biti, said:
Full cable:
Viewing cable 09HARARE285, ZIM NOTES 04-03-09
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|
Reference ID |
Created |
Released |
Classification |
Origin |
VZCZCXRO8923
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSB #0285/01 0931322
ZNR UUUUU ZZH
R 031322Z APR 09
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC 4330
RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 2261
RUEHAR/AMEMBASSY ACCRA 2760
RUEHDS/AMEMBASSY ADDIS ABABA 2882
RUEHRL/AMEMBASSY BERLIN 1328
RUEHBY/AMEMBASSY CANBERRA 2147
RUEHDK/AMEMBASSY DAKAR 2503
RUEHKM/AMEMBASSY KAMPALA 2930
RUEHNR/AMEMBASSY NAIROBI 5371
RUEHGV/USMISSION GENEVA 2049
RHEHAAA/NSC WASHDC
RHMFISS/EUCOM POLAD VAIHINGEN GE
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHEFDIA/DIA WASHDC
RUEAIIA/CIA WASHDC
UNCLAS SECTION 01 OF 04 HARARE 000285
SIPDIS
AF/S FOR B. WALCH
ADDIS ABABA FOR USAU
ADDIS ABABA FOR ACSS
NSC FOR SENIOR AFRICA DIRECTOR MICHELLE GAVIN
TREASURY FOR D. PETERS
STATE PASS TO USAID FOR LDOBBINS AND JHARMON
COMMERCE FOR BECKY ERKUL
E.O.12958: N/A
TAGS: PGOV PREL ASEC PHUM ECON EFIN ZI
SUBJECT: ZIM NOTES 04-03-09
———–
¶1. SUMMARY
———–
Topics of the week:
– WhereQs the Money
– QTsvangirai Blasts West
– New Mercedes for All
– Parliament forms Committees
– QBlowQ to U.S. Sanctions
– Journalist Abducted in Gweru
– Anglican Church Feud Boils Over
– No QHell HoleQ Here
– Exam Council Corruption
– Labor Struggles
– Two Staffdels on Their Way
– Family Planning Contributing to Health Success
– King of Pop Supports GOZ
– Scoping Mission for Donor-GOZ Needs Assessment
– Prices Falling for the Masses
– Biti Gets Tough with Tax Evaders
– A Whiff of Recovery on Local Exchange
– Deloitte Mired In Controversy
– Quote of the Week
—————————–
On the Political/Social Front
—————————–
¶2. WhereQs the Money… SADC last week in Swaziland approved an
economic recovery plan of US$10 billion for Zimbabwe and agreed that
US$2 billion was needed urgently. SADC will next look to donors.
Concretely, South Africa agreed to provide US$30 million over three
months for budgetary support and a US$50 million line of credit.
See Harare 278
¶3. QTsvangirai Blasts WestQ… On his first day back in the office
following bereavement leave after the tragic death of his wife
Susan, Prime Minister Morgan Tsvangirai said he saw Qno reason why
everyone should doubt [ZimbabweQs] reforms.Q The Herald twisted his
words into a negative blast at U.S. sanctions. A headline on Friday
in the inside of The Herald declared QWest doesnQt want Govt to
succeed,Q and again attacked the U.S. on sanctions. ZANU-PF,
through its mouthpiece The Herald, has apparently declared at least
a temporary truce with its partner in government, and is focusing
its ire on the West and the U.S. in particular.
¶4. New Mercedes for All… Education Minister David Coltart is the
lone MDC minister to turn down a new US$50,000 E280 Mercedes Benz.
This comes despite years of MDC criticism of government expenditures
on luxury vehicles. Finance Minister Tendai Biti told the press
this week that the vehicles were purchased last year but never
distributed. Separately, Reserve Bank Governor Gideon Gono told
parliamentarians this week that their second-hand vehicles will be
replaced with new cars as soon as Minister Biti Qgets money.
Senate president Edna Madzongwe (ZANU-PF) proposed that new MPs be
given priority.
¶5. Parliament forms Committees… This week parliament finalized
several important committee structures, including the legal
committee, responsible for reviewing constitutionality of proposed
legislation and the portfolio committees, which serve as an
oversight mechanism on the executive. Additionally, Parliament
constituted a select committee on the constitution, which will
direct the constitutional draft process. See Harare 281
¶6. QBlowQ to U.S. Sanctions… This week John Bredenkamp, a
businessman on the EU and OFAC sanctions lists who has backed the
Qbusinessman on the EU and OFAC sanctions lists who has backed the
HARARE 00000285 002 OF 004
regime, won an interim order from the High Court in Johannesburg
preventing South AfricaQs Standard Bank from shutting down his
accounts. The bank tried to close them citing concerns about its
own reputation and that clients might think that Standard BankQs
accounts Qcould be used to facilitate unlawful or unethical acts.
¶7. Journalist Abducted in Gweru… Kudzai Musengi, a freelance
journalist, was abducted on March 31 and held for 24 hours by
unknown assailants. He had been working on a story about land
invasions in the area when he was abducted. He was driven into the
bush where he was interrogated and threatened. He was eventually
released near his home.
¶8. Anglican Church Feud Boils Over… The contentious relationship
between the head of the Anglican Church in Harare, Bishop Sebastian
Bakare, and his deposed and excommunicated predecessor, former
Bishop Kunonga, became violent on March 28 when police disrupted
Anglican services and wounded a bystander with an errant shot.
Police used tear gas and riot police to prevent Bakare supporters
from holding services at Anglican churches, in support of KunongaQs
claim that those properties now belonged to him. While KunongaQs
diocese has abandoned him, he retains strong ties to Police
Commissioner Chihuri, who has directed his department to support
Kunonga. The two Home Affairs ministers met with both men this week
and, while expressing dismay at the heavy-handed police action,
deferred the matter to the Attorney GeneralQs office. See Harare283
¶9. No QHell HoleQ Here… South Africa-based SABC-TV3 aired QHell
HoleQ this week, a horrifying documentary on prison conditions
across Zimbabwe. Footage, taken over three months using smuggled
cameras, showed overcrowded, filthy prison cells, starvation among
prisoners, and interviews with prisoners who described appalling
conditions and bodies left rotting for days in prison cells. In
response, Justice Minister Patrick Chinamasa said, QSABC is lying.
We do not allow cameras into our prisons. We have made
investigations and found out that the footage is not from Zimbabwe.
Prison officials where the footage was taken are now reportedly
under investigation for Qcompromising state security.
Nevertheless, the government recently agreed to allow the
International Committee of the Red Cross to assist with improving
prison conditions.
¶10. Exam Council Corruption… Education Minister Coltart has
uncovered corruption in the marking of O and A level exams by the
Zimbabwe Schools Examination Council (ZIMSEC). He found ghost
markers and irregularities that will cause further delays both in
the payment of markers and in the release of the long overdue 2008
exam results.
¶11. Labor Struggles… Unemployment, dwindling wages, conflicting
laws, splinter unions, and internal squabbles have eroded the
Zimbabwe Congress of Trade UnionQs influence. For a detailed
QZimbabwe Congress of Trade UnionQs influence. For a detailed
analysis see Harare 275 and 276.
¶12. Two Staffdels on Their Way… Over the next two weeks post
will host congressional staff delegations from the Senate Foreign
Relations Committee and from the House Committee on Foreign Affairs.
¶13. Family Planning Contributing to Health Success… Preliminary
results from a yet-to-be-released study indicate that ZimbabweQs
maternal mortality rate is now about 715 per 100,000 births, about
2,700 deaths annually. This is an increase from a 2005/2006 survey,
and constitutes an increase of about 30% since 2000. Interestingly,
the new data show that only 6% of maternal deaths are due to
post-abortion complications Q 4 to 5 times lower than in other
developing countries in Africa. Since the number and timing of
HARARE 00000285 003 OF 004
pregnancies affect the reproductive health risks for women, it may
well be that high levels of contraceptive prevalence in Zimbabwe are
contributing to the low numbers of abortions and post-abortion
complications, without which the maternal mortality rate in Zimbabwe
could well have been 24% higher. The same data indicates perinatal
mortality in Zimbabwe is 29 per 1,000, about 10,800 infant deaths
per year. Other developing countries with similar child mortality
rates often have perinatal mortality of around 40 or 45. The
reduced rate in Zimbabwe may also be related to high levels of
contraceptive use. In sum, the 58% prevalence of modern
contraceptive use among married women in Zimbabwe appears to be
saving lives. If so, USAIDQs continuing investments in family
planning are a significant contributor to that preventive health
success story.
¶14. King of Pop Supports GOZ… On April 1, the government
mouthpiece The Herald reported that Michael Jackson was coming to
Zimbabwe to sustain the QmomentumQ from last weekQs Tourism
Stakeholders Conference, confirm Zimbabwe as a safe tourist
destination, and donate money to Zimbabwe. On April 2, the
newspaper confirmed it was all an April FoolQs joke.
————————–
Economic and Business News
————————–
¶15. Scoping Mission for Donor-GOZ Needs Assessment… The World
Bank, AfDB, UNDP, and the EC, in coordination with the Ministry of
Finance, will undertake a scoping mission from April 6-17 to lay the
groundwork for a sectoral-based needs assessment in May. The
mission will clarify the role of the donors and government in the
needs assessment, agree on a timeline and framework, identify team
composition, and establish key sectors and priorities to be
reviewed. The needs assessment will cover six sectors, including
economic growth, social protection, infrastructure, agriculture
recovery, basic services, and government. As a joint donor-GOZ
effort, it will be the basis for recovery and development programs.
¶16. Prices Falling for the Masses… With the introduction of
dollarization, PricewaterhouseCoopers has resurrected its monthly
cost of living survey. For February 2009, it determined a 14.44%
drop in the monthly cost of living for low-income earners. For
high-income earners the index actually rose 7.62%, driven by
increases in domestic employee salaries, telephone bills, school
fees, and vehicle maintenance.
¶17. Biti Gets Tough with Tax Evaders… In his review of the 2009
Budget, Finance Minister Biti directed the Zimbabwe Revenue
Authority to strictly enforce tax laws including seizure of assets
of tax evaders and auctioning them to recover lost revenue. Stiff
penalties are intended to instill discipline among tax payers who
had grown accustomed to evading taxes in recent years.
¶18. A Whiff of Recovery on Local Exchange… The Zimbabwe Stock
Exchange recorded its first notable increase in volume this week
QExchange recorded its first notable increase in volume this week
since re-opening two months ago. Market capitalization (shares
times their price) recovered to US$1.588 billion after having hit a
low of US$1.275 billion in mid March.
¶19. Deloitte Mired In Controversy… At an Extraordinary General
Meeting of wireless provider Econet last week, auditor Deloitte
appears to have inflated the total ballots cast while disregarding
key proxy votes. The irregularity boosted the vote in favor of a
resolution to enter into a US$93.9 million installment sale
agreement with Econet Wireless Global, a Strive Masiyiwa investment
vehicle. Threats of suits and countersuits abound. Econet/Masiyiwa
is also a key shareholder in the disastrous merger last year of
Kingdom Bank and Meikles Africa which has also ended up in the
HARARE 00000285 004 OF 004
courts over allegations of misdoings.
¶20. Quote of the Week:
QI have not bought any cars for anyone… We either had to leave
them to rot or sell them, and get half their value. It was cheaper
to keep them. It was a matter of practicality.Q –Finance Minister
Tendai Biti on the ministersQ Mercedes Benzes.
MCGEE
(20 VIEWS)
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