Problems for Air Zimbabwe continued with reports saying the national airline was technically insolvent and was on the verge of collapse, just six months after the formation of the inclusive government.
The airline was said be planning to slash wages by 50 percent and send some workers home in a last-ditch effort to stay in business.
Air Zimbabwe’s monthly wage bill for its workforce of 1 420 was said to be US$1.2 million.
The airline’s chief executive Peter Chikumba said he needed only half the current number of workers.
Full cable:
Viewing cable 09HARARE651, ZIM NOTES 08-07-2009
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|
Reference ID |
Created |
Classification |
Origin |
VZCZCXRO0401
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSB #0651/01 2240833
ZNR UUUUU ZZH
R 120833Z AUG 09
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC 4802
RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 2364
RUEHAR/AMEMBASSY ACCRA 2975
RUEHDS/AMEMBASSY ADDIS ABABA 3091
RUEHRL/AMEMBASSY BERLIN 1520
RUEHBY/AMEMBASSY CANBERRA 2354
RUEHDK/AMEMBASSY DAKAR 2721
RUEHKM/AMEMBASSY KAMPALA 3139
RUEHNR/AMEMBASSY NAIROBI 5582
RHEHAAA/NSC WASHDC
RHMFISS/EUCOM POLAD VAIHINGEN GE
RUEHGV/USMISSION GENEVA 2269
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHEFDIA/DIA WASHDC
UNCLAS SECTION 01 OF 03 HARARE 000651
AF/S FOR B. WALCH
ADDIS ABABA FOR USAU
ADDIS ABABA FOR ACSS
NSC FOR SENIOR AFRICA DIRECTOR
STATE PASS TO USAID FOR L.DOBBINS AND J. HARMON
COMMERCE FOR ROBERT TELCHIN
SIPDIS
E.O.12958: N/A
TAGS: PGOV PREL ASEC PHUM ECON ZI
SUBJECT: ZIM NOTES 08-07-2009
———–
¶1. SUMMARY
———–
Topics of the week:
– VP Msika Dies…
– Parliament Recommends 12 for Media Commission…
– Protesting Students Arrested…
– GOZ Forms Diamond Committee…
– ZLHR Wins ABA award…
– Magistrate Acquitted…
– Women Speak Out on Political Rape…
– Hillary Who?
– Bus Company Denies Juju…
– Mayor to Get New Merc?
– Air Zimbabwe Losing Altitude…
– Zim Dollar Casts Shadow from its Grave…
– Farm Output Expected to Decline…
—————————–
On the Political/Social Front
——————————
¶2. VP Msika Dies… Vice President Joseph Msika died on Wednesday
at 85 after years of poor health. Leaders from all political
parties have issued statements praising the late Msika who has been
a leader since the liberation struggle. Msika was named a national
hero by the ZANU-PF politburo and will be buried at hero’s acre. We
believe Mugabe will appoint another Ndebele politician to replace
Msika, but there are no clear-cut favorites. See Harare 643.
¶3. Parliament Recommends 12 for Media Commission… Parliament
concluded interviews this week for the Zimbabwe Media Commission
(ZMC) and the Broadcasting Authority of Zimbabwe (BAZ), recommending
12 nominees for appointment by the President. Mugabe is bound by
law to appoint eight ZMC commissioners and a chairperson. After
former Media and Information Commission Chairman Tafataona Mahoso
received a low score and did not make the short list of nominees,
eliciting anger among some ZANU-PF stalwarts who called the process
biased. Media and human rights lawyer Chris Mhike received the
top score in the interviews. Other nominees include journalists
Nqobile Nyathi, Mathew Takaona, Miriam Madziwa, Henry Muradzikwa,
Godfrey Majonga and Wabata Munodawafa, academic Rino Zhuwarara,
pastor Useni Sibanda, Roger Stringer, academic Clemence Mabaso and
banker Millicent Mombeshora.
¶4. Protesting Students Arrested… 10 of the 14 students arrested
Wednesday at the University of Zimbabwe have been released. Four
others, including Zimbabwe National Students’ Union (ZINASU)
president Clever Bere, remain in police custody. The students were
protesting high fees at the university, which now range from
US$400-600. The University re-opened this week, and students who
have not paid fees have been barred from attending lectures and from
the library.
¶5. GOZ Forms Diamond Committee… Defense Minister Emmerson
Mnangagwa, Finance Minister Tendai Biti, Mines Minister Obert Mpofu
and Trade Minister Welshman Ncube have reportedly formed a committee
to respond to concerns raised by the Kimberley Process. This is
apparently in response to a letter the KP Chair, Namibian Bernard
Esau, sent to the government this week regarding concerns for the
safety of Zimbabweans who met with the KP delegation members during
their visit in late June.
¶6. ZLHR Wins ABA award… Zimbabwe Lawyers for Human Rights (ZLHR)
Q6. ZLHR Wins ABA award… Zimbabwe Lawyers for Human Rights (ZLHR)
received the American Bar Association (ABA)’s Rule of Law award at
the ABA’s national congress in Chicago on August 1. In her remarks,
ZLHR Director Irene Petras acknowledged the economic progress made
in Zimbabwe but decried ongoing human rights abuses.
HARARE 00000651 002 OF 003
¶7. Magistrate Acquitted… Mutare acting regional magistrate
Livingstone Chipadza was acquitted this week of criminal abuse of
duty. The State contended that Chipadza showed favor in sanctioning
the release of MDC-T Treasurer and Deputy Agriculture
Minister-designate Roy Bennett from remand prison in Mutare in
February. After allowing Bennett’s release, Chipadza was arrested
and held for several days in the notoriously overcrowded and filthy
Mutare jail before being released on bail.
¶8. Women Speak Out on Political Rape… A local NGO has published
a video featuring stories of political rape during last year’s
election violence. See: http://hub.witness.org/en/HearUs
ViolenceAgainstWomeninZimbabwe2.
¶9. Hillary Who? While press around the rest of Africa is abuzz
with news of Secretary Clinton’s ongoing visit to Africa, the
government-run local press has not mentioned her ongoing, historic
visit.
¶10. Bus Company Denies Juju… This week the government revoked
the license of Mhunga Bus Services after a head-on crash killed 40
people on August 2. Earlier this year a Mhunga bus was involved in
an accident that killed 30. Since 1995, 200 people have died in
accidents involving Mhunga’s buses. In an article in The Herald,
the company director denied that Mhunga had used juju to enhance its
business, following allegations that juju-gone-wrong had caused the
crashes.
¶11. Mayor to Get New Merc? Harare’s mayor, MDC-T’s Muchadeyi
Masunda is getting a new Mercedes at the cost of USD153,000 to the
Harare city council, according to the government mouthpiece The
Herald.
———————————–
On the Economic and Business Front
———————————-
¶12. Air Zimbabwe Losing Altitude… Local press reports that Air
Zimbabwe is technically insolvent and “on the verge of collapse.”
The airline may slash wages by 50 percent and send some workers home
in a last-ditch effort to stay in business. Air Zimbabwe’s monthly
wage bill is USD 1.2 million for its workforce of 1,420. AirZim CEO
Peter Chikumba has said he needs only half this number of workers.
The GOZ is the airline’s sole shareholder and has reportedly sought
to sell a 60-percent stake in return for a capital injection of USD
750 million.
¶13. Zim Dollar Casts Shadow from its Grave… Finance Minister
Tendai Biti has said more than once that he had put “a tombstone on
the grave of the Zim dollar,” but the public is getting different
signals from the other side of Zimbabwe’s disunited unity
government. Zimbabweans generally see the reintroduction of a
national currency as inevitable, but much depends on the timing.
Business leaders and bankers told us this week that uncertainty over
resurrection of the Zim dollar makes people nervous about depositing
their U.S. dollar balance in the banks, and that further reduces the
banks’ capacity to make loans. With Zimbabwe’s dollarized economy
now showing signs of life, lack of credit is now a universal
Qnow showing signs of life, lack of credit is now a universal
complaint within the business community.
¶14. Farm Output Expected to Decline… Production estimates
published this week by the Commercial Farmers’ Union (CFU) show
output declining in 2009 for all crops except maize and sorghum.
The CFU projects a 28-percent increase in maize output this year
over 2008 with an expected harvest of 534 tons. Production of
cotton is expected to fall to 210 tons, down 6 percent, and
flue-cured tobacco output will be down 18 percent to 40 tons. The
CFU’s annual report says production has been constrained by lack of
HARARE 00000651 003 OF 003
financing for inputs, unreliable power supply, and price controls.
—————–
Quote of the Week
—————–
¶15. “Zimbabwe welcomes foreign investment and offers immense
opportunities in the mining sector. Acquisition of a mining title
is relatively the simplest in Africa.” – Mining Minister Obert
Mpofu, speaking at the Fifth Annual Mining in Africa Conference in
South Africa on August 6.
DHANANI
(15 VIEWS)
