ZIM NOTES 11-16-2009

UNCLAS SECTION 01 OF 03 HARARE 000901 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 11-16-2009 -------------- ¶1. SUMMARY -------------- Topics of the week: Bennett's Lawyers Challenge Judge's Impartiality... Magistrate Who Jailed Prosecutor Forced Out... Outreach Campaign Focuses on Child Protection... Prison Guards Deny Medical Treatment to Abductee... MDC-T MP Acquitted of Rape Charges... Court Throws Out Charges Against ZCTU Leaders... Grain Marketing Board Tries to Borrow... Watchdog Unearths Massive Looting of State Assets... Old Mutual Slammed for Stake in Zimpapers... Loan from Meikles Saves Kingdom Bank... -------------- On the Political and Social Front -------------- ¶2. Bennett's Lawyers Challenge Judge's Impartiality... On November 12, the trial of Roy Bennett was further delayed as his lawyers filed a motion challenging Judge Bhunu's impartiality in handling the case. Bennett's lawyers argued that while hearing the bail application of Bennett's alleged coconspirator Peter Hitschmann's May 2006, Bhunu remarked that the evidence against Hitschmann was "overwhelming. Judge Bhunu will decide on November 16 if he will recuse himself. Harrison Nkomo, a member of Bennett's defense team, believes Bhunu will jump at the opportunity to avoid dealing with the politically-sensitive case. Hitschmann was acquitted and the prosecution now wants him to testify against Bennett on the basis of a confession which state security agents allegedly extracted through torture. ¶3. Magistrate Who Jailed Prosecutor Forced Out... Chioniso Mutongi, the magistrate who jailed prosecutor Andrew Kumire for contempt of court during the trial of human rights lawyer Alec Muchadehama, has been forced to resign. The Herald reported that Mutongi resigned on November 3, citing interference and intimidation by the Attorney General. Mutongi said that subsequent to her ruling she "had a torrid time and was entirely abused and harassed'' by the prosecution, but did not receive any protection from the Chief Magistrate, Hlekani Mwayera. ¶4. Outreach Campaign Focuses on Child Protection... Over two million Zimbabwean children country-wide will benefit from a multi-media awareness campaign on child protection put together by Children First, in partnership with Population Services International (PSI) and USAID. The campaign will feature a weekly radio-drama program broadcast on Radio Zimbabwe as its centerpiece. Broadcast over 26 weeks, the radio program will focus on children's rights and what they can do if their rights are violated. The radio drama will be complemented by distribution of exercise packs that educators can use to guide discussions with children's groups. The program was unveiled in two phases: The first was on October 21 in Harare and the second was on November 5 near Bulawayo. Programming will be in both Shona and Ndebele. ¶5. Prison Guards Deny Medical Treatment to Abductee... MDC-T Transport Manager Pascal Gwezere has still not received his QTransport Manager Pascal Gwezere has still not received his court-ordered medical treatment because of resistance by prison officials. Gwezere was abducted by state security agents on October 27, and according to his lawyers, has been subjected to severe torture during his ongoing detention. ¶6. MDC-T MP Acquitted of Rape Charges... The MDC-T MP for Kwekwe, Blessing Chebundo, was acquitted this week of charges that he had raped a 14-year old girl. The MDC had argued that ZANU-PF was politically persecuting a number of its members, including Chebundo, HARARE 00000901 002 OF 003 on trumped-up charges. Chebundo defeated the notorious Defense Minister Emmerson Mnangagwa (ZANU-PF) in the March 2008 elections. Separately, Thamsanqa Mahlangu (MDC-T),an MP serving as the Deputy Minister of Youth, was acquitted of charges that he stole the cell phone of war veteran's leader, Joseph Chinotimba. ¶7. Court Throws Out Charges Against ZCTU Leaders... On November 12, Victoria Falls-based magistrate Richard Ramaboea threw out charges against Zimbabwe Congress of Trade Unions President Lovemore Matombo and four staffers. The five labor leaders were arrested by the police on November 8 for violating the Public Order and Security Act (POSA) by not notifying the police of their intention to hold a public meeting. The police detained the unionists for four days, before eventually charging them on November 12. Magistrate Ramaboea berated the police and reminded them that the law did not cover trade unions. -------------- On the Economic and Business Front -------------- ¶8. Grain Marketing Board Tries to Borrow... In an attempt to raise USD 2.5 million to purchase grain, the GOZ's former grain monopoly is trying to borrow directly from the market by auctioning three-month bills. Bankers have told us they expect little demand for GMB paper, mainly because the state-owned enterprise is broke and does not have a business plan that makes sense. An implicit GOZ guarantee behind GMB bills probably will not help much, since the GOZ is also broke. The GMB currently quotes prices for corn that are significantly above world market prices. After years of buying high and selling low, the GMB can no longer pay its employees or its creditors. ¶9. Watchdog Unearths Massive Looting of State Assets... In a special report for the first quarter of the 2009 financial year, Zimbabwe's Comptroller and Auditor General (CAG) highlighted massive looting of state assets across a number of ministries. The report notes the recruitment of 10,277 youths who were added to government payroll in 2008 without following proper procedures, costing the state large amounts of money in wages. The CAG also found that about 44 motor vehicles out of a large pool donated by Reserve Bank Governor Gono disappeared with top level officials in various ministries under unclear circumstances because of lack of documentation. The same happened with regard to computers, laptops, and fax machines bought by Gono in a clear case of patronage. ¶10. Old Mutual Slammed for Stake in Zimpapers... Old Mutual Zimbabwe, the local arm of South Africa's insurance and finance giant, has come under fire for its 18 percent stake in Zimpapers, the GOZ-controlled publisher of The Herald and other Mugabe-friendly publications. From what we see in the press, the controversy began in South Africa, where human-rights organizations and trade unions have accused Old Mutual of "directly supporting the Mugabe regime." Qhave accused Old Mutual of "directly supporting the Mugabe regime." Old Mutual's holding in Zimpapers date back to before independence, when the firm held shares in the Rhodesian Printing and Publishing Company. ¶11. Loan from Meikles Saves Kingdom Bank... The recent demerger of Kingdom Financial Holdings (KFH) from Kingdom Meikles Africa Limited has potentially negative consequences for Kingdom Bank in the medium to long term. A managing director of one of the subsidiaries of KFH told us that the group only managed to satisfy the Reserve Bank of Zimbabwe's minimum capital requirements courtesy of a loan from Meikles Africa. Apart from mobile telecom leader Econet Wireless and Meikles Africa, which moved their accounts out of the KFH group, the bank had reportedly not experienced any massive outflow in deposits. But following the resignation of eight executives this month, clients may start moving their money out, which could trigger a run on the bank. HARARE 00000901 003 OF 003 -------------- Quote of the Week -------------- ¶12. "Mutambara and the MDC-M are an extension of ZANU-PF. What kind of party president would fail to garner more than 300 votes during last year's elections in Chitungwiza? He is not worthy to be deputy prime minister." MDC-T Secretary General Tendai Biti addressing a rally at Chibuku Stadium in Chitungwiza on November 8. RAY