President Robert Mugabe cannot fire central bank governor Gideon Gono because he knows where the Zimbabwe African National Union- Patriotic Front skeletons are buried.
This was said by the United States embassy in Harare after Finance Minister Tendai Biti increased pressure on Gono by demanding that he should be kicked out of a cabinet meeting.
Biti had only been in office for two months.
He argued that important donor nations such as the US and Britain would not fund a recovery while Gono remained at the helm of the Reserve Bank.
A cable released by Wikileaks says Mugabe, however, showed no inclination to fire his loyal banker who has been the lynchpin to ZANU-PF currency manipulation and corruption schemes, and knows where the ZANU-PF skeletons are buried.
Full cable:
Viewing cable 09HARARE192, ZIM NOTES 03-06-2009
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|
Reference ID |
Created |
Released |
Classification |
Origin |
VZCZCXRO3913
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSB #0192/01 0681203
ZNR UUUUU ZZH
R 091203Z MAR 09
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC 4145
RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 2221
RUEHAR/AMEMBASSY ACCRA 2679
RUEHDS/AMEMBASSY ADDIS ABABA 2800
RUEHRL/AMEMBASSY BERLIN 1266
RUEHBY/AMEMBASSY CANBERRA 2068
RUEHDK/AMEMBASSY DAKAR 2424
RUEHKM/AMEMBASSY KAMPALA 2848
RUEHNR/AMEMBASSY NAIROBI 5276
RHEHAAA/NSC WASHDC
RHMFISS/EUCOM POLAD VAIHINGEN GE
RUEHGV/USMISSION GENEVA 1969
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHEFDIA/DIA WASHDC
UNCLAS SECTION 01 OF 04 HARARE 000192
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 E.LOKEN
COMMERCE FOR ROBERT TELCHIN
SIPDIS
E.O.12958: N/A
TAGS: PGOV PREL ASEC PHUM ECON ZI
SUBJECT: ZIM NOTES 03-06-2009
———–
¶1. SUMMARY
———–
Topics of the week:
– Pressure Rises on Gono…
– Tsvangirai Urges West to Move Towards Lifting of Sanctions…
– Cabinet Reveals Loyalties and Priorities…
– Permanent Secretaries to Go?
– NGO Report Exposes Diamond Industry and Abuses…
– PM Tsvangirai Skips Party and Mugabe Reaffirms Land Reform…
– Mukoko Out, Bennett Still In…
– Cholera Update…
– USAID adds US$2.2m to Health Interventions…
– ZIMSEC Begins Marking 2008 Exams…
– UZ Fees Reduced…
– Civil Servants Get U.S. Dollar Allowances…
– Food Security Update…
– Food Security Update Continued…
– Tobacco Production Dropping…
– Cost of Food Continues to Fall…
– Prices Tumble on Stock Exchange…
– Zimbabwe Dollar Steady on the Parallel Market…
—————————–
On the Political/Social Front
—————————–
¶2. Pressure Rises on Gono… Finance Minister Tendai Biti escalated
pressure on Reserve Bank of Zimbabwe Governor Gideon Gono by
demanding his ouster in a Cabinet meeting this week. Biti argued
that important donor nations such as the U.S. and the UK would not
fund a recovery while Gono remained at the helm of the Reserve Bank.
Mugabe, however, shows no inclination to fire his loyal banker who
has been the lynchpin to ZANU-PF currency manipulation and
corruption schemes, and knows where the ZANU-PF skeletons are
buried… See Harare 184.
¶3. Tsvangirai Urges West to Move Towards Lifting of Sanctions… PM
Tsvangirai made his inaugural address to Parliament on March 4 where
he urged the international community to observe Zimbabwe’s efforts
and progress and move towards a lifting of sanctions. (The Herald
on its front page trumpeted Tsvangirai as calling for the West to
lift sanctions.) He also called for national healing, media freedom
and an end to political violence. On the same day, President Obama
renewed the U.S.’s targeted financial sanctions against Zimbabwe for
at least one additional year. The full text of Tsvangirai’s speech
is available on his newly-launched website,
http://www.zimbabweprimeminister.org/
¶4. Cabinet Reveals Loyalties and Priorities… The MDC and ZANU-PF
picks for cabinet seats reflect both Mugabe’s and Tsangirai’s
priorities and strategies. See Harare 180.
¶5. Permanent Secretaries to Go? On February 24, President Mugabe
unilaterally appointed permanent secretaries – the leading
bureaucrats in each ministry that can make or break a minister’s
ability to make things happen. PM Tsvangirai and Deputy PM Arthur
Mutambara protested the action, averring that the Interparty
Political Agreement and Amendment 19 required consultation and
agreement. Mugabe responded that he had the power to make the
appointments. Nevertheless, after a meeting with Tsvangirai and
Mutambara, all permanent secretaries were asked to submit their CVs
to Tsvangirai on the 27th in what may be a retreat by Mugabe.
¶6. NGO Report Exposes Diamond Industry and Abuses… NGO
Q6. NGO Report Exposes Diamond Industry and Abuses… NGO
Partnership Africa Canada released a report on March 4 on human
rights abuses surrounding Zimbabwe’s diamond fields. The report
HARARE 00000192 002 OF 004
calls on the Kimberley Process to suspend Zimbabwe until it can
ensure Zimbabwe’s diamonds are all mined and processed under a
controlled system. For the full report, see: http://www.pacweb.org
/e/images/stories/documents/18_zimbabwe
-diamonds_march09-eng.pdf
¶7. PM Tsvangirai Skips Party and Mugabe Reaffirms Land Reform…
After Prime Minister Morgan Tsvangirai failed to attend President
Mugabe’s 85th birthday party on February 28, the government
mouthpiece The Herald took the unusual step of running a front page
clarification that Tsvangirai didn’t attend “upon realizing it is a
party program. It is not a snub.” Mugabe used the occasion to
reaffirm his commitment to land redistribution and to call on the
remaining white farmers to leave. On Tuesday the High Court ruled
that the SADC tribunal’s decision that over 70 white farmers could
keep their seized property was illegal. On Thursday evening, the
president of the Senate, Edna Madzongwe and a group of 20 supporters
went to one of the farms, brandishing a copy of The Herald’s report
on the decision. Madzongwe demanded that work at the farm cease
immediately.
¶8. Mukoko Out, Bennett Still In… Deputy Agriculture
Minister-designate Roy Bennett is still in a Mutare prison, due to a
decision by Supreme Court Judge Paddington Garwe to allow the State
to appeal a previous High Court ruling granting bail. The MDC
accused Justice Minister Patrick Chinamasa and Attorney General
Johannes Tomana of unlawfully blocking Bennett’s release.
Separately, of the 32 people abducted at the end of 2008, 16 are now
out on bail, 6 remain in custody pending hearings on Friday March 6,
1 escaped, and 9 are still missing. Importantly, human rights
defender Jestina Mukoko was granted bail on Monday March 2. Nine of
those on bail had to pay a whopping (by Zimbabwe standards) US$600
for their release. See Harare 182.
¶9. Cholera Update… With deaths exceeding 4,000 out of about
88,000 cases, cholera still ravages Zimbabwe. The UN World Health
Organization reports an overall case fatality rate (CFR) of 4.5
percent, and its revised “worst-case scenario” shows the epidemic
peaking between 81,000 and 115,000 cases. Since CFR peaked at 5.7
percent on January 21, WHO has reported a continuing decline at
treatment centers, likely due to improved case management and
programs emphasizing early treatment.
¶10. USAID adds US$2.2m to Health Interventions… In addition to
its HIV/AIDS assistance, USAID this week released an additional
US$2.2 million for health programs in Zimbabwe. UNICEF received
US$300,000 for its measles vaccination campaign and John Snow
International received US$1.7 million to expand the capacity of the
national medical supply logistics system, ensuring that drugs and
commodities are properly coordinated, managed, and distributed. Two
hundred thousand will be spent on anti-malarial spraying. These
programs will help shore up the rapidly deteriorating health
Qprograms will help shore up the rapidly deteriorating health
infrastructure.
¶11. ZIMSEC Begins Marking 2008 Exams… The Zimbabwe Secondary
Examination Council (ZIMSEC) began grading 2008 national exams this
week after the Ministry of Education appealed to the RBZ for over
US$4 million to pay for transportation, lodging, food, and stipends
for test graders. June 2008 results that were supposed to be
available last August were released on Tuesday, and November 2008
exam results, which were supposed to be available by January, will
be ready by the start of April. Students cannot proceed to the next
level of schooling without passing national examinations.
¶12. UZ Fees Reduced… After the University of Zimbabwe Vice
Chancellor announced that second semester fees would range from
US$1,000-1,800, Minister of Higher Education Mudenge went into a
rage and cut them to US$200-600. He further claimed that no student
would be turned away for inability to pay, but instead would be
HARARE 00000192 003 OF 004
encouraged to join a “cadetship” program, bonding the student to the
GOZ in exchange for fees. The Zimbabwe National Student Union
(ZINASU) continues to condemn any forex fees, asserting that an
education should be free for those who cannot afford it.
———————————–
On the Economic and Business Front
———————————-
¶13. Civil Servants Get U.S. Dollar Allowances… The GOZ began
paying government employees a US$100 monthly allowance in February
in the form of vouchers to top up their (worthless) Zim dollar
salaries. Putting the brakes on abuse of the voucher printing
press, controlled by RBZ Governor Gono, Finance Minister Biti
announced that starting this month the GOZ would pay allowances
directly into employees’ bank accounts. Not all civil servants got
their vouchers and some banks could not pay out the full value for
lack of foreign exchange. See Harare 183.
¶14. Food Security Update… USAID’s Famine Early Warning Systems
Network reported greater food availability in February 2009 than in
January 2009 due to increased imports by commercial operators and
humanitarian agencies. These groups plan to assist close to 7
million people this month, up from aound 5 million in December
¶2008. Zimbabwe’s population may have decreased from 11.6 million at
the time of the 2002 census figure, to only 8 or 9 million
currently. For the full report, see: http://www.fews.net
/docs/Publications/Zimbabwe_2009_
02%20final.pdf.
¶15. Food Security Update Continued… A January 2009 Zimbabwe
Vulnerability Assessment Committee urban assessment showed that 33
percent of urban households were food insecure compared to 24
percent in November 2006. Surprisingly, the proportion of urban
household reporting income from remittances fell from 28 to 19
percent. In spite of all difficulties, 64 percent of urban
households (30 percent of food insecure ones) support other
households financially or with food. For the full report, see:
http://ochaonline.un.org/OchaLinkClick.
aspx?link=ocha&docId=1106327.
¶16. Tobacco Production Dropping… Zimbabwe’s publicly-listed
tobacco company TSL forecast 2008/09 production at between 35-40
million kg, although a report in The Herald (03/05/09) stated that
output will decline by 50 percent on last year’s figure of 45
million kg. The crop was adversely affected by input shortages and
sub-economic prices in 2008.
¶17. Cost of Food Continues to Fall… The EU Delegation estimated
that the cost of its 18-item low-income food basket for a family of
six fell by 3 percent on the week from US$220 to US$213. On a
related note, mobile network provider Econet is running a promotion
that effectively reduces rates by 20 percent to increase usage.
¶18. Prices Tumble on Stock Exchange… Trading on the Zimbabwe
Stock Exchange remains volatile as the market continues to look for
the true value of shares in foreign currency terms. Although
volumes have risen since the Exchange re-opened, the market
Qvolumes have risen since the Exchange re-opened, the market
capitalization of most counters has declined significantly. The
proposed introduction of two more levies by the Securities
Commission will raise transaction costs and discourage foreign
investment.
¶19. Zimbabwe Dollar Steady on the Parallel Market… The Zimbabwe
dollar has held steady at Z$6 trillion (Z$6 revalued) against the
U.S. dollar since the introduction of foreign exchange licensed
shops in October 2008, confirming the currency’s demise as a medium
of transaction. Oddly, only the old Z$50 billion note remains in
use, but solely by commuter bus operators who had been holding onto
HARARE 00000192 004 OF 004
the notes when demand for the local currency collapsed.
—————–
Quote of the Week
—————–
¶20. “I am still in control and hold executive authority, so nothing
much has changed.” — President Robert Mugabe, addressing a crowd of
2,000 at his 85th birthday party in Chinhoyi on February 28.
¶21. “Brutal suppression, wanton arrests and political persecution
impede our ability to rebuild our economy… I therefore urge the
international community to recognize our efforts and to note
progress in this regard, and to match our progress by moving toward
the removal of restrictive measures.” — Prime Minister Morgan
Tsvangirai, addressing Parliament on March 4.
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