By ED Mnangagwa| Last week, Minister of Finance Mthuli Ncube, drawing on his vast experience as chief economist and vice president at the African Development Bank (AfDB), announced a series of measures to reform and revive our economy, and put us on the path to steady economic growth. Cognisant of the scale and urgency of the challenges facing us, our plan is bold and far reaching, and will have the desired effect.

I have read your comments and understand the difficulties many face, and Government will do all in its power to minimise them. We are already taking the lead by cutting back on unnecessary spending. The only way to a stronger economy is to restructure, rebuild and reform.

We must all be realistic. Whatever some may claim, there are no silver bullets or quick fixes. There is no need to panic, and Government is guaranteeing the availability of all essential commodities, including fuel.

We are on a shared journey to a better and more secure future. The road is long, winding and at times bumpy, but there is no other way. This is the road to a middle-income economy, and if we travel it together, with patience and purpose, we will realise our vision.

Jane Mlambo| In what appears like a desperate attempt to discourage Zimbabweans from panic buying as anticipation of further increase of prices and shortages, President Emmerson Mnangagwa has continued with his usual rants that the country is moving towards a middle income economy by 2030.

In a statement this afternoon, Mnangagwa said the new monetary measures announced by Finance Minister, Mthuli Ncube will yield desired results and the country on a path to steady economic growth.

“Last week, Minister of Finance Mthuli Ncube, drawing on his vast experience as chief economist and vice President at the African Development Bank, announced a series of measures to reform and revive our economy, and put us on the path to steady economic growth.

“Cognisant of the scale and urgency of the challenges facing us, our plan is bold and far reaching and will have the desired effect.

“I have read your comments and understand the difficulties many face, and government will do all in its power to minimize them. We are already taking the lead by cutting back on unnecessary spending. The only way to a stronger economy is to restructure, rebuild and reform,” said Mnangagwa.

He added that Zimbabweans need to be realistic that the economy will be sorted easily as there are no silver bullets.

“We must all be realistic. Whatever some may claim, there are no silver bullets or quick fixes. There is no need to panic, and government is guaranteeing the availability of all essential commodities, including fuel.
We are on a shared journey to a better and more secure future.

“The road is long, winding and at times bumpy, but there is no other way. This is the road to a middle income economy, and if we travel it together, with patience and purpose, we will realize our vision,” he added.

The MDC President, Nelson Chamisa has refuted claims in the state media that he is angling for Prime Minister post saying his call for dialogue should not be misconstrued.

In an interview with 263Chat this morning, Chamisa spokesperson Dr Nkululeko Sibanda denied Chamisa’s interest taking up the Prime Minister post saying his boss is not interested in positions as his worry is on over 90 percent jobless Zimbabweans, economic mismatch and crisis in governance.

“No, the President is not interested in positions,” said Sibanda.

“What is certainly true is that the President is concerned about the plight of the 95 percent unemployed Zimbabweans not in anything else and he has developed a five point plan to deal with that.

“Firstly the President is of the view that the economic situation and unemployment will improve if we consider a national dialogue and ultimately be sure that we will never ever have another election whose outcome is disputed because if we do not put a mechanism to safeguard the election it is the economy that pays the price,” Sibanda.

-263Chat

The MDC President, Nelson Chamisa has refuted claims in the state media that he is angling for Prime Minister post saying his call for dialogue should not be misconstrued.

In an interview with 263Chat this morning, Chamisa spokesperson Dr Nkululeko Sibanda denied Chamisa’s interest taking up the Prime Minister post saying his boss is not interested in positions as his worry is on over 90 percent jobless Zimbabweans, economic mismatch and crisis in governance.

“No, the President is not interested in positions,” said Sibanda.

“What is certainly true is that the President is concerned about the plight of the 95 percent unemployed Zimbabweans not in anything else and he has developed a five point plan to deal with that.

“Firstly the President is of the view that the economic situation and unemployment will improve if we consider a national dialogue and ultimately be sure that we will never ever have another election whose outcome is disputed because if we do not put a mechanism to safeguard the election it is the economy that pays the price,” Sibanda.

-263Chat

 

Terrence Mawawa|An MDC Alliance official has been attacked by Zanu PF thugs in Harare.

“MDC-Alliance Councillor for ward 1 has been attacked by Zanu PF youths in Hopley today.

The old dispensation claiming to be new…” said the MDC Alliance in a brief statement.

The High Court has, with immediate effect, suspended Chitungwiza Mayor Gift Tsverere and his deputy Jabulani Mtunzi pending determination of the legality of their election.

More details to follow…

Jane Mlambo|President Emmerson Mnangagwa has dashed to the defence of under fire Finance Minister, Mthuli Ncube’s new monetary measures saying there is no need to panic as his government is guaranteeing continued availability of basic commodities including fuel.

In a statement released today, Mnangagwa said the announced measures will lead Zimbabwe on a path to steady economic growth and will have far reaching effects.

Read Mnangagwa’s statement below;

Last week, Minister of Finance Mthuli Ncube, drawing on his vast experience as chief economist and vice President at the African Development Bank, announced a series of measures to reform and revive our economy, and put us on the path to steady economic growth. Cognisant of the scale and urgency of the challenges facing us, our plan is bold and far reaching and will have the desired effect.

I have read your comments and understand the difficulties many face, and government will do all in its power to minimize them. We are already taking the lead by cutting back on unnecessary spending. The only way to a stronger economy is to restructure, rebuild and reform.

We must all be realistic. Whatever some may claim, there are no silver bullets or quick fixes. There is no need to panic, and government is guaranteeing the availability of all essential commodities, including fuel.
We are on a shared journey to a better and more secure future. The road is long, winding and at times bumpy, but there is no other way.

This is the road to a middle income economy, and if we travel it together, with patience and purpose, we will realize our vision.

Jane Mlambo| Self exiled former Zanu PF politiburo member, Professor Jonathan Moyo has launched a scathing attack at the Emmerson Mnangagwa led administration over its lies that fuel shortages are being caused by panic buying, questioning if medicine shortages are also a result of panic illness.

Moyo who took to Twitter to expose the new government’s failure to contain the Economic meltdown said the widely rejected monetary measures are responsible for the current mess that Zimbabwe is finding itself in right now.

2/3 While @Zimpapers is busy with propaganda to support the inherently unworkable & painful so-called monetary measures, the one dollar paid in RTGS FCA for a #Herald copy is 0.37 cents in real money. Herald is running at a loss & has cut down its daily print run from 26K to 11K!

— Prof Jonathan Moyo (@ProfJNMoyo) October 8, 2018

Jane Mlambo| Minister of Finance and Economic Planning, Professor Mthuli Ncube has rubbished as “fake news” reports that government is planning to tax diasporans.

“There is no diaspora tax,” finance minister Professor Mthuli Ncube told a local news organisation.

Permanent Secretary in the Ministry of Information also took to Twitter to dismiss the diaspora tax plan saying government is not thinking along those lines.

“Having received many messages from the good Zimbabwean people living in the Diaspora asking about some alleged “Diaspora Tax”, I spoke to my bro Perm Secretary for Finance Mr George Guvamatanga who confirmed there is no such a tax and no thinking along those lines,” said Mangwana.

The MDC President, Nelson Chamisa has refuted claims in the state media that he is angling for Prime Minister post saying his call for dialogue should not be misconstrued.

In an interview with 263Chat this morning, Chamisa spokesperson Dr Nkululeko Sibanda denied Chamisa’s interest taking up the Prime Minister post saying his boss is not interested in positions as his worry is on over 90 percent jobless Zimbabweans, economic mismatch and crisis in governance.

“No, the President is not interested in positions,” said Sibanda.

“What is certainly true is that the President is concerned about the plight of the 95 percent unemployed Zimbabweans not in anything else and he has developed a five point plan to deal with that.

“Firstly the President is of the view that the economic situation and unemployment will improve if we consider a national dialogue and ultimately be sure that we will never ever have another election whose outcome is disputed because if we do not put a mechanism to safeguard the election it is the economy that pays the price,” Sibanda.

-263Chat

By Paul Nyathi|At least twenty informal gold miners have been brutally injured with three others reported dead in a fierce gold mine war in Gwanda.

ZimEye.com sources from the town indicated that a group of miners reportedly from Kwekwe attacked local miners with machetes and axes after they refused them to mine at the rich Vhovha disused Mine outside Gwanda town.

The sources indicated that the local Ndebele speaking miners who were over powered by the new miners from Kwekwe were thoroughly beaten for claiming that Shona speaking people are not allowed to mine in the area.

“A small group of Shona speaking miners came to the mine a week ago and were turned away by local miners claiming that they could not mine because they are Shona,” said the sources.

“The group went away only to return with reinforcements over the weekend with over thirty heavily armed collegues from Kwekwe who thoroughly assaulted and killed some of the local people,” added the sources.

The terror group is reported to have moved into Gwanda town where they harassed and attacked local people at drinking outlets before eventually disappearing from the town.

Reports are that a group of police officers on patrol at Pakamani high density suburb business centre were sent fleeing from the area by the brutal thugs when the police tried to intervene in their unruly behaviour.

A Police officer in Gwanda confirmed the incident but would not give further details indicating that investigations are still ongoing.

The injured persons are all admitted at Gwanda Provincial Hospital.

Police in Bulawayo on Monday launched a blitz targeting illegal foreign currency dealers popularly known as Osiphatheleni after Chief Justice Luke Malaba ordered their removal from the streets.

Chief Justice Malaba, while officiating at the opening of three additional court rooms at the Bulawayo High Court on Friday, expressed concern at the presence of the illegal money traders outside Tredgold Building which houses the Bulawayo Magistrates` courts.

He tasked the Bulawayo City Council (BCC) in conjunction with the Judicial Service Commission (JSC) to take osiphatheleni off the streets.

On Monday afternoon, police swooped in on the unsuspecting forex traders and arrested some of them while others managed to evade arrest.

One forex trader who spoke to CITE, said they are used to such operations and they will soon be back in business.

“They sometimes come and cause chaos but then go away after some time, next week it will be business as usual,” she said.

Illegal money changers have been accused of manipulating the parallel market forcing prices of basic goods to spiral.

The operation also left some people who wanted to change their money stranded.

“l need to send Rands to South Africa and it is urgent. We usually change our money here as there is nowhere else we can get good rates,” said one lady.

The country is facing an economic meltdown evidenced by the bond and RTGS dismally losing value against the US$.

On Monday, US$100 was trading at $250 bond notes.

Cite report

A tour of Bindura, Pednor and Chawagona prison cells in the Mashonaland Central provincial capital, has revealed that the incarceration facilities are in dire straits and need attention.

At the Chawagona and Bindura Prison, poor sanitation was noted at a time when there is a cholera outbreak.

Prisoners at Pednor farm cells have improvised as tyres have been converted to washing dishes.

However, this is the least of their worries as the prisoners explained the challenges they are facing.

The provincial prisons and correctional services do not have their own offices and have to do with renting space from the GMB.

There is also only one vehicle to transport prisoners which has led to the prison authorities hiring vehicles from CMED.

Some of prison facilities are a security risk due to poor building materials used but commitment to ensure maximum safety remains their priority said ZPCS Senior Assistant Commissioner Kenny Ndebele.

He added that the staffing currently is too low at 510 members whereas the establishment strength is 1 171 officers.

Minister of State for Provincial Affairs in Mashonaland Central Senator Monica Mavhunga assured inmates of government’s commitment to safe rehabilitation and challenged them to become shining beacons to society after release.

The Zimbabwe Prison and Correctional Services have been working with churches to improve living conditions in the rehabilitation facilities.

Land has been allocated for the construction of the provincial headquarters and other cells but logistical challenges still remain. – state media

Zimbabwe has taken a huge step towards greater co-operation with the United States after Harare agreed to a pact for extradition of criminals between the two countries.

The development comes as President Emmerson Mnangagwa spearheads a policy shift to close holes that have been a drain on Zimbabwe-US relations.

Robert Mugabe’s regime had sat on the treaty for about 21 years.

Last Friday, Government issued Statutory Instrument 199 that paves way for smooth transfer of offenders between Zimbabwe and United States.

According to the Extradition (Designated Country) United States of America Order 2018, the treaty is bound by the mutual desire to “provide for more effective co-operation between the two states in the suppression of crime”.

The agreement comes after a High Court ruling in March blocking the extradition to the US of Chris and Julius Marimbire and Andrew Tashanduka Bere for tax fraud involving $7 million.

In 2015, Zimbabwe failed to secure the extradition of American dentist Walter James Palmer, who was at the centre of killing Cecil the Lion.

Palmer’s allegedly illegal hunt was masterminded by Theodore Christian Bronkhorst, who was fined $2 300 or three years imprisonment.

The High Court last week set aside Bronkhorst’s conviction and sentence, but Palmer remains a wanted man.

Home affairs and Cultural Heritage Minister Cain Mathema said extraditable offences were those punishable under laws in both countries, carried sentences above one year, or any other severe penalty.

Minister Mathema said the regulations allowed for extradition even in cases where the person sought was a national of the requested country.

No extradition will be enforced for political charges.

Said the minister in the notice, “For the purpose of this treaty, the following offences shall not be considered to be political offences; a murder or other wilful crimes against the person of a Head of State of one of the contracting states, or of a member of the Head of State’s family;

“An offence for which both contracting states have the obligation pursuant to a multilateral international agreement to extradite the person sought or to submit the case to their competent authorities for a decision as to prosecution.

“The executive authority of the requested state may refuse extradition for offences under military law which are not offences under ordinary criminal law.”

Minister Mathema said extradition procedures and required documentation would be done through diplomatic channels.

The documentation includes detailed information on the person sought, their alleged offences and the law describing their punishment.

International relations, peace and governance academic Dr Darlington Mahuku told The Sunday Mail yesterday that the treaty was a milestone in Zimbabwe-US relations.

He said, “… United States policy since the late 1990s was very acrimonious as it partnered opposition political parties in Zimbabwe.

“So if then there is that willpower to co-operate in the extradition of criminals, it shows there is a thawing of relations and this is a positive for the New Dispensation in Zimbabwe.

“It is also tied to the Vienna Convention on Diplomatic Relations in that if a person has committed a crime and runs away, for example, from Zimbabwe to the US to seek asylum, that person can be brought back to face the law.”

Dr Mahuku the previous Govenrment had sat on the agreement for around two decades, and President Mnangagwa’s speedy resolution of the matter boded well for bilateral ties.

State Media

Media Statement|Electronic communications and transactions have been a convenient source of revenue for African governments looking to expand their tax base. In that context Zimbabwe becomes the latest African country to hike tax rates on electronic transactions. This comes after the Zimbabwean Minister of Finance and Economic Development, Professor Mthuli Ncube hiked the tax on electronic transactions from 5 cents per transaction to 2 cents per every dollar transacted electronically.

He made the announcement on 1 October 2018. In the past year alone Uganda, Zambia, Benin, Kenya and now Zimbabwe , have introduced or increased taxes on either Internet-based communications or on electronic transactions. In the past, taxation was purely an economic issue, but this has since evolved to also include the issue of digital rights.

Electronic transactions refer to most popular forms of alternative payment such as Point of Sale transactions, Real Time Gross Settlement (RTGS) transfers, and mobile money transfers on platforms such as Ecocash and OneMoney.

Electronic transactions have proved to be a robust solution to Zimbabwe’s perennial cash shortages. In other countries, consumers utilise electronic payment methods out of convenience. However, this is not the case in Zimbabwe. Zimbabwean banks have since mid-2016 been struggling to meet cash demands leaving consumers with no choice but to rely on electronic payment methods. It is estimated that Zimbabweans conducted transactions worth $65 billion electronically in the first six months of 2018 alone.

On paper, taxing electronic communications and transactions makes business sense for governments because of the popularity of these electronic communications and payment methods in African countries such as Zimbabwe. In reality, though these taxes indirectly infringe the right to free expression, access to information, and socio-economic rights.

Electronic transactions as enablers of socio-economic rights

It is an undisputed fact that most Zimbabweans now rely on various forms of electronic transactions to access or pay for basic goods and services such as food, education, and health care among others.

Under the new tax arrangement, government will now take 2% of every amount deposited or transferred into an electronic account; government will then take a further 2% from every amount transferred from that electronic account.

This will undoubtedly push up the costs of conducting electronic transactions. This increase is likely to limit the number of people who can afford to transact electronically meaning that the electronic transactions tax will take away the main method consumers currently rely on to pay for goods and services.

It becomes a violation of those people’s socio-economic rights when they do not have any other alternative than to transact electronically in order to access goods and services.

Taxation is not a solution

To help ease the costs of transacting electronically, government through the Posts and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ), reduced the costs of transacting on the Unstructured Supplementary Service Data (USSD) platform from 12 cents per transaction to 5 cents per transaction.

The hike in electronic transaction tax directly reverses any previous government efforts to make electronic transactions more affordable for the consumer. An increase in electronic transactions is actually counter-productive because it pushes transaction costs beyond the reach of most Zimbabweans who were already finding it hard to get by under the previous tax regime.

In Uganda for example, the increase in mobile money transfer tax led to a decrease in the number of transactions completed over mobile money payments. The Ugandan government acknowledged this and eventually reduced the tax imposed on mobile money transfers.

MISA Zimbabwe urges the responsible authorities to reconsider this extreme increase in electronic transactions tax because it will restrict people’s access to basic goods and services. Government must come up with alternative ways to raise revenue in ways that will not adversely affect people’s quality of life.

Source: MISA Zimbabwe

By VeritasZim|Two recent actions by the Government – the declaration of a military cantonment area on which there are mining claims and the imposition of an increased tax on electronic money transfers – have raised questions about the Government’s respect for property rights and, more broadly, its commitment to the rule of law.

What is the Rule of Law?

In our Constitution Watch 4/2010 entitled The Constitution and the Rule of Law we discussed the rule of law and pointed out that although it was an elastic concept it basically meant that people’s rights and obligations must be determined and protected by laws rather than by individuals or groups of individuals exercising an arbitrary discretion. We noted that from this basic concept several principles are derived, including the following which have a bearing on property rights:

– Principle of Legality: People must not be deprived of their rights or freedoms through the exercise of wide discretionary powers by the Executive. Rights and freedoms should be curtailed only by the ordinary courts applying the law.

– Laws must be Certain: It must be possible for people to establish relatively easily the content of the law and the extent of their rights and duties under it.

– Laws must not be Retroactive: Laws should apply only to the future and should not attempt to change rights and duties retrospectively. It is futile for anyone to find out what his or her rights and duties are under the law if a future law can nullify those rights.

Property rights are protected under the rule of law: like other rights they must not be taken away arbitrarily or retroactively, and disputes over property rights must be resolved by independent and impartial courts according to the law.

Where property rights are not respected, the rule of law is absent.

Property Rights and the Constitution

Property rights are also specifically protected by our Constitution.

Section 71(2) states:

“Subject to section 72 [which deals with agricultural land], every person has the right, in any part of Zimbabwe, to acquire, hold, occupy, use, transfer, hypothecate, lease or dispose of all forms of property, either individually or in association with others.”

The section goes on to say that no one may be compulsorily deprived of their property unless stringent conditions are met, including the payment of fair and adequate compensation and the right to contest in court both the legality of the deprivation and the amount of compensation payable.

Section 3 of the Constitution states that one of the principles of good governance, which bind the State and all its institutions, is “due respect for vested rights”, i.e. for rights that belong to a person completely and unconditionally. Government cannot ride roughshod over vested rights.

For obvious reasons the Constitution recognises that the Government can impose taxes which oblige people to pay or hand over part of their property to the State, but the Constitution limits even that power:

– Section 298(1)(b)(i) states that the burden of taxation must be shared fairly.

– Section 298(2) states that no taxes may be levied except under the specific authority of the Constitution or an Act of Parliament.

So not only should property rights be protected out of respect for the rule of law, but the Government must also respect them by virtue of the Constitution.

As stated at the beginning of this bulletin, however, two recent incidents have cast doubt on the Government’s commitment to property rights, the rule of law and the Constitution.

1. Contested Appropriation of Mining Claims

SI 145/2018 gazetted the Defence (Cantonments) Notice, 2018 (No. 51) on the 3rd August, 2018.

This notice, by the former Minister of Defence and War Veterans Affairs [Vice-President Retired General Chiwenga doubling as a Minister], declared the area of Darwendale North Farm to be a cantonment (i.e. a military camp) for the purposes of section 89 of the Defence Act. The notice means that access to the area by anyone other than Defence Force personnel requires special authorisation from the officer in command of the cantonment.

The validity of the Minister’s declaration has been challenged in a High Court application brought by RioZim Limited, a company with international connections which is the registered holder of chrome mining claims within the new cantonment area. RioZim alleges that two companies with connections to the Defence Forces and the Ministry of Defence started mining operations on its claims before the 3rd August, that these operations are continuing, and that the declaration of the cantonment followed RioZim’s refusal to enter into a tribute agreement under which one of the companies could mine the claims subject to payment of a royalty to RioZim.

The argument, in effect, is that the declaration of the cantonment is an improper attempt to exclude RioZim from the mining claims so that the two Government / Military -connected companies can exploit them. Even if that was not its purpose, the declaration resulted in the nullifying of mining claims without notice and without compensation, in violation of the Constitution and the rule of law.

2. Tax on Electronic Money Transfers

On Monday the 1st October the Minister of Finance and Economic Development delivered a statement on new fiscal measures in which he announced:

“I hereby review the Intermediated Money Transfer Tax from 5 cents per transaction to 2 cents per dollar transacted, effective 1 October 2018. I am therefore directing financial institutions, banks and ZIMRA, working together with telecommunication companies to extend the collection to all electronic transactions.”

So the tax increase was to have immediate effect even though no Act of Parliament or other law had been enacted to provide for it. Neither the Minister nor his advisers seem to have realised that the Constitution does not allow taxes to be imposed or altered by ministerial decree, or that such a decree, unsupported by any Act or statutory instrument, violates the rule of law.

Effect on Foreign Investment and Assistance

It is generally accepted that the economy is in crisis, caused by unsustainable levels of foreign and domestic debt, and that the only way out of the crisis is to attract investment and increase the Government’s tax revenues.

It is also generally accepted, by development economists if not by the Government of Zimbabwe, that good governance is the key to economic development. Good governance in this context entails respect for the Constitution, the rule of law and property rights, as well as certainty in the tax régime. Foreign and domestic investors have to know that their property rights will be respected by the Government and protected by the courts, and they must be confident, when planning their investments, that taxes will not be imposed or changed arbitrarily or without warning.

The two incidents outlined in this Bill Watch show that the Government has some way to go before it reaches the necessary standards to attract the investment we need so urgently.

Source: Veritas

FINANCE minister Mthuli Ncube’s nightmarish start at the helm of Treasury worsened at the weekend, with the Law Society of Zimbabwe (LSZ) accusing him of violating provisions of the Finance Act by introducing the new 2% tax for each dollar on electronic transactions without seeking the necessary amendment to the Act.

This came amid reports that the new tax regime was not sanctioned by the Reserve Bank of Zimbabwe, as required at law.

The LSZ, in a statement, urged Ncube to rescind the decision and follow proper procedures.

“In light of the serious financial and practical implications of the announcement to all enterprise and common persons, there has been a public outcry and calls for the minister to rescind the announcement.

The Law Society of Zimbabwe and its members support the call that the two cents per dollar tax on all transactions be rescinded because, among other reasons, its imposition is unlawful,” LSZ said.

Ncube is accused of violating sections 22G of the Finance Act, which fixes a five cents tax for each transaction exceeding $10 on which the tax is payable and this, could only be changed through an Act of Parliament and not a Government Gazette.

“As the law stands, the minister’s directive to all financial institutions, banks and Zimra (Zimbabwe Revenue Authority) working together with telecommunication companies to collect $0,02 per every dollar transacted is unlawful because it violates section 22G of the Finance Act.

The proper procedure for the amendment of a law (in this instance Section 22G of the Finance Act) is through Parliament as required by the Constitution, and not through a policy statement,” LSZ said.

LSZ said Ncube could not take a “short-cut” on this matter because the current increase in tax was a compulsory acquisition of property rights which, at law, should be conducted in strict compliance with the Constitution.

“Property rights enshrined in section 71 of the Constitution are jealously guarded.

To that end, an acquiring authority must comply with the requirements of the law to the letter.

Among those requirements is section 71(3)(c)(i) of the Constitution, which calls upon an acquiring authority to give reasonable notice before acquisition is effected,” the statement read.

It is understood that RBZ governor John Mangudya was opposed to Ncube’s new tax measures, which, instead of bringing stability to the market, triggered price hikes while putting a huge dent on financial inclusion by the central bank.

“The RBZ was not consulted on the new tax measures which it views as a major dent on its drive for financial inclusion, acceptance of plastic money and has massive impact on attracting local and foreign investors,” a highly-placed source in the financial services sector told NewsDay.

In 2016, Mangudya capped bank and money transfer charges as part of efforts to bring down costs on plastic money transactions, before Ncube last week introduced a raft of measures including the two cents per dollar for every electronic transaction.

Ncube later reviewed the new tax following a public outcry and exempted other transactions, but left middle-income earners and ordinary people heavily exposed.

The Zimbabwe Congress of Trade Unions (ZCTU) at the weekend described the new tax regime as “retrogressive” and threatened to mobilise for mass demonstrations on Thursday to force Ncube to rescind the decision.

“This extension of the collection of the intermediated money transfer tax to all financial transactions is regressive in that it negates the very essence of such platforms that were established to promote financial inclusion,” ZCTU said in a statement.

“Taxing the formerly financially excluded poor people, especially in rural and urban communities, is highly retrogressive and regressive.”

Ncube, however, insisted that the poor were covered by exempting transactions below $10.

“We have covered that bit by revising the tax regime and saying all transactions of $10 or less are exempted from the tax, we have covered the poor,” Ncube said.

NewsDay

By Paul Nyathi|ZANU-PF has overwhelmingly defeated the MDC Alliance in the Chimanimani Ward 6 by-elections held on Saturday.

The ruling party candidate Ronnie Chimbarara got 482 votes defeating his nearest rival MDC Alliance’s Chiambiro Mukombapi who got 92 votes.

Three other candidates in the by election each failed to get up to fifty votes. The other candidates were Antony Chikoshana (PRC), Tapfumaneyi Mashudu (NCA) and Muchuuro Amin (Independent).

The ward fell vacant before the July 30, harmonised elections following the death of one of the candidates vying for the local authority post.

The MDC Alliance has vowed that it will participate in all the by elections that will come up in the run up to the 2023 elections. Previously under the leadership of founding President Morgan Tsvangirai, the party declined participating in any by elections.

Jane Mlambo| Vice President, Kembo Mohadi has rallied Zimbabweans to be disciplined and corrupt free during the period the country is going through what he termed, the early stages of a radical economic transformation following a long period of economic stagnation and retrogressive development.

Mohadi made the remarks on Friday at the official launch of the pathways for peace initiative.

While the economy is choking due to a myriad of problems ranging from foreign currency shortages to price hikes, government has found the going tough as they battle to keep the country afloat.

Mohadi’s remarks seem to be government’s desperate plea for citizens to be optimistic of change in fortunes.

Most citizens have been hording basic commodities like cooking oil, flour and many others in anticipation of future shortages.

Government says civil service is top heavy and needs to shed off excess employees as part of its restructuring exercise, Transitional Stabilisation Programme (TSP) report revealed.

Finance and Economic Development Minister Professor Mthuli Ncube last Friday launched the Government’s economic blueprint, TSP, which runs from this month to December 2020.

The economic blueprint indicates that the country’s civil service needs to be restructured into a more effective public service and that the process will entail reducing the number of civil servants.

“The TSP envisages the shedding of excess staff in the public service in order to create a leaner and effective civil service.

“It is acknowledged that affected staff have skills and experience gained over the years, which should put them in good stead to transition through the change as well as contribute towards the new socio-economic development trajectory of the country,” reads the report.

The TSP report also stated that the Government would support those affected by the job cuts by providing them with tools and resources, including targeted re-skilling, re-training and re-employment programmes for them to compete in the open market.

“Those who wish to engage in productive activities will be assisted in accessing market-based financing windows, with Government providing the necessary guarantees, including tax incentives,” reads the report.

It said Government would also need to attend to issues where it has more employees in senior positions like principal directors.

-State Media

A teenager from Bulawayo allegedly stabbed a colleague to death and nonchalantly led the victim’s family to the body and thereafter ran away.

The assailant only identified as Evans (18) aka Vado from Pumula East suburb, allegedly stabbed Bekithemba Mlalazi (18) at MaNdlovu Beer Garden on Friday following a dispute over a cellphone.
Evans is alleged to have led Bekithemba’s brother Witness Mlalazi (19) to his brother’s lifeless body on Saturday morning.

The state media yesterday spoke to Bekithemba’s father Mr Stanley Mlalazi who, with the help of Witness, narrated how his son was “needlessly killed.”

“We learnt of his death yesterday (Saturday) in the morning. I was coming from Magwegwe where I had gone to buy glue as I am a cobbler. I saw Witness crying and I asked him what the problem was. He said his brother was gone, they had murdered him,” said Mr Mlalazi.

He said what pained him even more is that his son’s killer had the guts to come to his home and inform them about his son’s death before disappearing.

“He came here and woke up Witness who was still asleep. He asked if he had seen his brother. When Witness told him he had not seen him since the previous night, he then told him to follow him so he could show him where he was. The boy led him to the slain Bekithemba’s body. His body was found at Mandlovu Beer Garden, in a bushy area. My son was stabbed on the left side of his upper body,” he said.

Mr Mlalazi said he believed his son could have survived if he had been rushed to hospital soon after being stabbed.

He said Bekithemba’s killer has not been arrested although police arrested someone who was found with the knife which was used to stab him.

“He has not been arrested but it seems he escaped to Emganwini suburb where his father lives. He lived with his mother here. We have been in contact with the police who said they haven’t arrested him as he was in hiding”, said Mr Mlalazi.
Witness said Evans escaped soon after showing him Bekithemba’s lifeless body.

“He came home at about 7AM, asking if I had seen my brother. When I said no he said let’s go look for him. He led me straight to the Beer Hall where he showed me his lifeless body,” said Witness.

“I screamed in shock and as I rushed to touch his body, Vado escaped and has not been seen since. I can’t say he was a close friend to my brother but here and there they interacted. The knife he used was found with an elderly man who usually hangs around the beer garden. Police arrested him,” said Witness.- state media

Former President Robert Mugabe’s family business, Gushungo Holdings, which was recently slapped with a $174 183 default judgement in favour of a potato seed company, has successfully thwarted efforts to attach its property after a successful High Court appeal.

Gushungo Holdings was on July 2, 2018 slapped with a default judgement after failing to defend the litigation instituted by Seed Potato Co-op (Pvt) Ltd in May this year. The company then applied for permission to attach Mugabe’s property.

But through Gushungo Holdings’ representative Farai Jemwa, Mugabe’s company submitted that it never received the summons demanding the claimed amount and only read about the issue in a local paper.

Jemwa said it later turned out that the court papers had been served on a person not employed by the family’s business.

On September 26, 2018, High Court judge Justice Benjamin Chikowero confirmed the provisional order granted by the court on July 17.

According to the court papers, the default judgement against Gushungo Holdings was granted by High Court judge Justice Joseph Musakwa.

In its earlier claim, the seed company said during the period between July and September 2015, it supplied Gushungo Holdings with 12 761 pockets of potato seed worth $382 830 of which Mugabe’s firm made part payment, leaving a balance of $174 193.

Meanwhile, Gushungo Holdings recently petitioned the court claiming $712 530 compensation from Seed Potato Co-op, accusing the company of selling to it substandard seeds contrary to the parties’ agreement.

In its declaration, Gushungo Holdings said sometime in July 2015, it entered into an oral agreement with Seed Potato Co-op whereby the latter allegedly agreed to supply quality potato seeds imported from South Africa, but it later realised that it had been sold substandard seeds that failed to produce the expected harvest.

The matter is pending. – Standard

 

Terrence Mawawa|Hard-hitting political analyst Antony Taruvinga believes the economic crisis besieging the country is a direct effect of the legitimate problem in Zimbabwe.

“It’s ain’t only at the filling stations but everywhere, grocery shops inclusive. Panic buying and
speculative hording against scarce commodities simply lead us to hyper inflation, the likes of which has never been seen in the history of mankind.

We are beating the 2008 Zimbabwe hyper inflation record, unless a new government is quickly put in place.
Let’s return to legitimacy. The true winner must lead Zimbabwe, not Mnangagwa,” argued Taruvinga

Staff Reporter|A New Zealand man flew to Zimbabwe to retrieve his son who was illegally taken out of that country by his estranged wife.

James Way won a court order in a Zimbabwean court allowing him to bring his son, Nicholas, back home after he was taken to the country by his mother, Lauren Way, who’s also known as Lauren Smith.

The 11-year-old had been in Zimbabwe nearly eight months and is believed to have been enrolled in a boarding school near Harare.

Smith has been at the centre of an international manhunt since February 9 after fleeing with her son.

A warrant to arrest was issued in the Hamilton District Court in March after the 42-year-old failed to appear on an abduction charge.

Police earlier confirmed she had breached a family court order in relation to her son.

When contacted again this week, police confirmed that they “worked with the family regarding NZ law” and gave them “advice in relation to the safe return of the child”.

Way returned to New Zealand with his son on Monday, a police spokesperson said.

“Police worked closely with the family and gave them advice on their legal options.

“A court in Zimbabwe heard the matter and awarded custody to the father.”

Smith, who used to live in Tirau, South Waikato, where she owned the daycare Kids Rock, did not return and is still wanted by police.

She had been on holiday in New Zealand at the time, as she had been living in the United Kingdom, before she decided to flee with her son.

She is believed to have remained in Zimbabwe and been unaware of the operation to bring her son back to New Zealand.

James Way told the New Zealand Herald he was “happy to have Nicholas home” and wanted people to now respect his privacy.

“It’s a really hard time and we just want some private time and want to get back to normal.”

Smith’s North Island-based father, Gerald, the former president of the right-wing conservative African political party The Rhodesian Front, said he didn’t think his daughter would have had any idea of the plan to bring Nicholas back home.

He said he hadn’t spoken to his daughter due to an issue with phones but had some email contact.

Nicholas’ return home was “a bit of a shock”, he said, but he was looking forward to catching up with him on Friday when he would celebrate his 12th birthday.

As for what his daughter would do now, Smith said he was unsure.

“We just don’t know what her strategy is at the moment. We just don’t know. Until such time as I hear from her and find out how it all happened, I really don’t know. It came as a bit of a shock, that’s all.”

He earlier told the Herald his daughter was disillusioned with the New Zealand family court system and described her taking her son overseas as a “desperate move by a desperate person”.

He described her as a “strong-willed” person who was likely given advice regarding her son and acted on the spur of the moment to take him overseas.

Source: New Zealand Herald

 

Terrence Mawawa|Energy Minister Joram Gumbo has urged the nation to remain calm because the government has placed contingent measures to resolve the shortage of fuel.

” The fuel situation in Zimbabwe is set to improve after the RBZ increased forex fuel allocation by $5
million to $25 million per week following an increase in international oil prices.

As such the situation is under control and there is no need to panic,” said Gumbo.Meandering fuel are visible in major urban centres in the country.

The RBZ has issued a press statement signed by their boss, Dr John P. Mangudya indicating that there is more than sufficient fuel in the country after the bank released US$500 million to acquire fuel.

The statement is a complete opposite of what is prevailing on the groun. Long fuel queues characterised the weekend throughout all major towns in the country.

The full statement circulated on Sunday reads as follows:

The Reserve Bank of Zimbabwe (the “Bank”) wishes to advise members of the public that it has started drawing down foreign currency from the US$500 million lines of credit advised in the Monetary Policy Statement issued by the Bank last week. As advised, the purpose of the facilities is to fund the procurement of essential commodities including fuel, electricity, wheat and raw materials for the manufacturing of cooking oil and packaging.

The Bank released US$40 million for the procurement of fuel on Friday, the 5th of October, 2018 and the fuel is currently being supplied and delivered to the various filling stations and supply points across the market. The Bank is grateful to the National Oil Company of Zimbabwe for working round the clock to ensure that the fuel is delivered to the oil marketing companies across the country.

In view of these positive developments, the Bank would like to assure the public that there is sufficient fuel available in the country and therefore there is no need for panic-buying of fuel and other essential commodities.

The Bank has noted that increase of prices of certain goods has followed the spike in foreign currency parallel market rates which is being caused by some people bent to dupe the public of their hard earned income. The opportunists are manipulating foreign currency parallel market rates to cause unnecessary panic and despondency and destabilisation of the economy. Such counterproductive behaviour is unwarranted and should be condemned by all peace loving Zimbabweans.

The Bank would also like to reassure the public of that the multi-currency system will remain in use and the Bank shall continue to secure lines of credit to supplement the country’s foreign currency earnings from exports and diaspora remittances in order to support the entire economy.

Dr J P Mangudya

Governor

7 October 2018

Government is moving to engage Zimbabwean road construction firms in a major road expansion programme connecting Beitbridge and Chirundu amid indications the deal reached with Chinese firm Anhui Foreign Economic Construction Group Limited (Afecc) was running into problems.

This comes after government withdrew the tender awarded to an Austrian company Geiger International.

The project is aimed at adding more lanes to the 900km highway from Beitbridge on the border with South Africa to Chirundu on the Zambian border.

Transport minister Joel Biggie Matiza last week told journalists they are still negotiating with constructors for the commencement of the project.

Early this year, Cabinet resolved to withdraw a tender that had initially been awarded to Austrian firm Geiger International for the dualisation of the road.

President Emmerson Mnangagwa said government had become impatient with lack of construction activity along the country’s busiest highway.

After Geiger’s removal, government is yet to conclude talks with Afecc, which was controversially stopped from mining diamonds in Chiadzwa two years ago.

“Government intends to conclude negotiations on this project as soon as possible. It is paramount to note that delays in these negotiations will prompt government to engage locally,” Matiza said in a press statement.

“I believe as a country, we can implement this project through our own resources and manpower.”

Noting that the Beitbridge-Chirundu road is important to the country as it is the economic artery, Matiza said the project will commence as early as possible.

“The Beitbridge-Harare-Chirundu Road Dualisation Project, being part of the North-South Corridor, is key to regional development and trade facilitation.

“I have started engagement with various stakeholders including the Reserve Bank of Zimbabwe governor, CMED (Pvt) Ltd and Zimbabwe National Roads Administration (Zinara).

“In the meantime, as agreed in Cabinet, my ministry will maintain government’s terms of reference as published in the initial bidding process.

“These address our challenges and carry us forward, so it is critical at this juncture, that government continues to engage the private sector through Public-Private Partnerships (PPPs) for the development of such infrastructure.”

This comes as government has embarked on its most ambitious infrastructure investment programme ever, entailing construction of new roads, upgrading of some facilities and the rehabilitation of others.

Over $2 billion is being touted as having been budgeted for on road construction.

Local firms have missed out on lucrative contracts, scooping a meagre portion of the total value of awarded contracts with the rest going to foreign firms mainly from China.

One local contractor said they had the capacity to build the roads but  blamed the government for raising their demands on firms during tendering of projects like requiring experience on big projects, which many lack, due to decades of under-investment in the sector.

In the past, some contractors gave the sector a bad name through project delays, shoddy work that frayed soon after completion and diversion of project funds.

Matiza said his ministry is committed to ensuring that the highway is resurfaced as CMED is currently working on a programme that is expected to make a massive contribution towards road rehabilitation.

“I am pleased to note that CMED (Pvt) Ltd is working on a programme which will see the entity procuring new equipment and rehabilitating some of the existing equipment for road construction,” he noted.

“This equipment will go a long way in capacitating the nation, particularly my ministry in carrying out its mandate of transport infrastructure and services provision,” he said.

The dilapidated highway, which is old, narrow and heavily infested with potholes, has been responsible for many fatal accidents over the years.

Matiza noted that government is constrained in the mobilisation of resources for road maintenance and construction and in a bid to make sure that all roads, particularly the major ones, are catered for — Zinara has established new toll gate locations some of which are now operational.

The minister urged motorists to contribute towards road rehabilitation through adhering to road user requirements which entail them to pay tolling fees.

“Government notes the actions of some citizens who have a tendency of by-passing tolling points. This has an impact on the rest of the abiding citizens,” he said.

“These are advised to desist from such actions and assist the government in the maintenance and construction of the nation’s road network. I urge us all to take pride in our nation and build it together.”

Plans to refurbish the Beitbridge-Chirundu highway have been on the table for nearly two decades before the government struck a deal with Geiger International in 2016.

After winning the contract, the Austrian contractor was seemingly delaying the dualisation process over “unconvincing” reasons, till government decided to terminate the contract.

Following the abortion of Geiger’s contract, government engaged Afecc, which came second in the bidding process won by Geiger.

-Daily News

HARARE – Zanu PF youths have declared war on illegal traders and ruling party bigwigs suspected of being behind the country’s thriving foreign currency black market.

Their warning comes as bond notes continue to crash precipitously against the United States dollar — causing mayhem in mainstream business and resulting in panicking shoppers rushing to hoard basic goods.

Zanu PF youth league secretary Pupurai Togarepi yesterday said that illegal money changers and their “bosses” had a week to leave the streets or face the consequences.

“While patience is a virtue, this should never be misconstrued for docility.

“We have watched in horror and dismay so-called money changers holding this nation to ransom and we cannot continue to let these greedy and corrupt individuals continue to bleed this great nation which is on an economic rebound and a new political trajectory under the able leadership of President ED Mnangagwa just to line their pockets.

“We will not hesitate to take the money and hand it over to the Reserve Bank of Zimbabwe in a transparent and accountable way,” Togarepi warned.

This comes as the country is gripped by a critical shortage of foreign currency which has impacted the economy very negatively.

Togarepi, who is also the Zanu PF chief whip in Parliament, also said they would “smoke out” party bigwigs whom they accused of fuelling the illegal currency trading.

“Let those behind these crooks who are hoarding our monies know that we have the means to smoke them out and we will only give them seven days to shape up or ship out.

“The youth league, as the vanguard of the country, will not tolerate this nonsense any further and very soon we will descend on the robbers who are masquerading as money changers.

“This stern warning also applies to foreigners who have hijacked our retail sector … we are not against investment but we abhor this practice by foreigners of mopping up forex and externalising it to their home countries,” the Gutu South MP said.

Zimbabwe is in the grip of a mega economic crisis which has led to company closures, severe job cuts and price increases on the back of foreign currency shortages.

The government’s recent attempts to revive the economy have suffered setbacks as weary Zimbabweans accuse authorities of piling more taxes on them instead of assisting them.

On Monday, Finance minister Mthuli Ncube introduced a raft of measures aimed at breathing life into the country’s sickly economy— including a two cents per dollar transaction tax which has backfired spectacularly after being rejected by angry Zimbabweans.

Militant labour unions have warned that they are preparing to go on strike — to protest the tax.

Despite Ncube’s later revision of his measures, the situation has blown into a full-scale crisis, as businesses have hiked goods prices, raising fears that inflation will spiral out of control.

“We have the means. We are the ruling party and we have the law on our side.

“We say it is unacceptable that a foreigner or anyone for that matter lives with millions of US dollars under their mattresses. At the lapse of the seven days we are going to name and shame the thieves posing as investors.

“We will strip them bare and ask relevant authorities to deport them from Zimbabwe. Our people yearn for tangibles and we, as the future of this country, will not allow a few miscreants to stop this beautiful dream whose time has come,” Togarepi thundered further.

“We are also aware that some saboteurs are hell bent on causing artificial shortages of commodities like cement for speculative purposes.

“This will only end badly for them because we as the youth league will ask government to revoke their licences.

“We have the capacity and we will make sure the good of the people is respected.

“This also applies to kombis. We have the names of foreigners who are in the transport business and we know that they are also behind money changers,” he said further.

-Daily News

President Emmerson Mnangagwa’s silence in the face of accusations by opposition leader Nelson Chamisa that he rigged the July 30 elections is not a sign of weakness, his spokesman has said.

Mnangagwa’s spokesperson George Charamba told The Standard in an exclusive interview that there was a false narrative that the Zanu PF leader’s legitimacy depended on Chamisa’s endorsement.

“We hope that maturity will visit him [Chamisa] some day and he realises that winners do not win on the goodwill of losers,” he said.

“So, the silence of Mnangagwa is not a weakness. He is a man of steel and wool, depending on which side you tickle him.”

“This narrative that the legitimacy of the president is made through acceptance of defeat by the opposition leader is a false narrative.

“If it did, we will not need the Zimbabwe Electoral Commission or the courts.

“We would need the say-so of the opposition, but there is no human being who confers legitimacy on a person who won the plebiscite.

“It means you are placing yourself above courts, and all this prattling is to us prattle of an undersized political child.”

Charamba also described reports of a rift between Mnangagwa and Vice-President Constantino Chiwenga as part of a strategy to drive a wedge between the two.

“Maybe because of the experiences of pre-November where there was tension within the presidency, the media industry has grown to believe that an abiding feature of the presidency must be conflict,” he said.

“That notion has spilt over from pre-November and was motivated by the G40, and that thinking still lingers in your newsrooms, which are looking for validity in changing circumstances —and so there must be conflict, and if it is not there, it must be invented so that the theory of conflict continues and you (media) say who is more likely to be an adversary of the president and you think it must be Chiwenga.”

Charamba also denied reports that when he was Information ministry secretary he used state media to prop up Chiwenga in order to overshadow Mnangagwa.

Standard

The government has refuted reports that it is planning on introducing a “Diaspora Tax” which will be targeting Zimbabweans who live outside the country. The purported tax was reported in some online publications and on social media platforms. Dismissing the reports, Permanent Secretary in the Ministry of Information, Publicity and Broadcasting Services, Ndavaningi Nick Mangwana said,

Having received many messages from the good Zimbabwean people living in the Diaspora asking about some alleged “Diaspora Tax”, I spoke to my brother Permanent Secretary for Finance Mr George Guvamatanga who confirmed there is no such a tax and no thinking along those lines…There is always someone out there keen on generating Fake News, I guess…Countries come up with different tax regimes. An example is US taxes it’s external citizens. Eritrea also has such. So there was a need to check if our Ministry is entertaining such thinking.

An excerpt from one report about the purported diaspora tax is as follows:
THE cash-squeezed government of Zimbabwe has found a way out of its financial quagmire… taxing its more than four million citizens in the Diaspora. Senior government sources revealed this week that the government has started working on modalities after Finance Minister presented his budget review last week to make sure that each member of the Zimbabwean Diaspora community pay between US$25 to US$100 per month depending on where they are based.

Those in the SADC region would pay US$25, those on the rest of the African continent would pay US$50 and those based overseas would pay US$100 in presumptive tax per month. This is expected to generate at least US$200 million for the government every month. “Other countries do it (taxing their citizens based abroad)”, the official said. “If they can send $2 billion home a year, it means they can surely afford to pay slightly more for the good of their country.”

Jane Mlambo| Finance Minister,Professor Mthuli Ncube has noted that Zimbabwe’s economy is bigger than previously thought amid indications that the annual gross domestic product had grown to $25 billion from $18 billion.

In an article published in the Financial Gazette, Ncube said the data adjustment had boosted annual gross domestic product to $25.8 billion (20 billion pounds) from around $18 billion.

Ncube said the new calculations took into account the large informal sector for the first time and had turned Zimbabwe into a lower-middle income nation.

“Our economy is bigger than we think,” said Ncube.

Former president Robert Mugabe’s son-in-law Simba Mutsahuni Chikore is reportedly wanted by police on allegations that he detained a former Zimbabwe Airways employee against her will.

This emerged during yesterday’s court appearance of Chikore’s alleged accomplice Simbarashe Mutimbe, a security guard, who reportedly helped Bona Mugabe’s husband to detain former ZimAirways employee Bertha Zakeyo during a dispute.

According to the prosecutors, Chikore is still at large.

Mutimbe (34) was not asked to plead when he appeared before Harare magistrate Rumbidzai Mugwagwa, who remanded him to October 22 on $30 bail.

Prosecutors said on June 7 this year, Mutimbe unlawfully deprived Zakeyo of her freedom after he refused to let her leave ZimAirways premises in Harare after she had been fired by Chikore.

Chikore, who was the ZimAirways boss, allegedly clashed with Zakeyo after he accused her of selling company secrets.

ZimAirways purchased three planes, two of which were delivered to Zimbabwe from Malaysia and were grounded in Harare before they were flown back for maintenance.

Zakeyo was then caught in a purge of senior staffers who Chikore allegedly accused of being disloyal.

She was allegedly detained in a bid to force her to sign a dismissal letter after she had refused to do so.

Zakeyo allegedly told her alleged assailants that she could only sign the documents in the presence of her lawyer.

Chikore allegedly locked the office and called the police saying there was a person who was causing trouble at the company.

A local businessman has accused former Information Communication Technology minister Supa Mandiwanzira of arm-twisting him to seize control of the now-defunct Rainbow Airlines.

Frank Humbe, who is suing Mandiwanzira for $350 000 over the failed business partnership deal, told the High Court last week that the Zanu PF MP had destroyed his dreams.

Humbe said he founded Rainbow Airline in 2013 and acquired an air service permit which was followed by an air operator’s certificate from the Transport and Infrastructure Development ministry and Civil Aviation Authority of Zimbabwe.

“To start operations, I approached financial institutions and some individuals for funding, but unfortunately it was very difficult because the economy was not doing well,” he said.

“Sometime in May 2016 I had a meeting with Mandiwanzira at his radio station’s ZiFM offices in Newlands after being introduced to him by a friend.”

Humbe said the former minister expressed interest in the project after he told him about his dream.

“We needed $600 000 to kick-start the project since most of the work had been done and he agreed to provide the money,” he said.

“I offered him 40% shareholding, but he argued that as a cabinet minister he wouldn’t like to be seen as a junior partner in the project and he proposed to have 50% shareholding and he was with one Gilbert Muponda, who was introduced as a business partner and would stand in for the minister during negotiations.”

Humbe said he acceded to Mandiwanzira’s demands because he was desperate for the project to take off.

“Mandiwanzira’s team fronted by Muponda started to be too aggressive against me, piling a lot of unreasonable accusations and he demanded more shares and threatened that they were not going to put more money if I refused to give him another 20% shares,” he alleged.

“I had no funds at that time, no investor and I was left with no option, but to accept. Muponda then prepared an addendum for the new agreement and they would pay me $150 000 cash for the extra 20%.”

Humbe said after signing the new agreement, Mandiwanzira took all the documents to his office, and after four weeks he was surprised when he was allegedly given “forged documents of the agreement with different terms”.

“When I raised my displeasure over the forged contract, Mandiwanzira, who was with his brothers Richard and Robson, and Muponda, came to me fuming, saying he would use his political muscle to grab the project,” he claimed.

“Mandiwanzira told me he would take me to the cleaners and was not going to change anything. He said even if I went to court I would never win the case.”

Humbe said when he eventually cancelled the agreement through his lawyers, he started receiving death threats.

Standard