Zesa has fired eight top managers, demoted two and suspended three while the other is serving three months’ notice pending dismissal over malpractices picked up in the forensic audit published last year.

A number of other managers are set to be transferred to posts in other provinces.

The Herald understands that those that have been fired are Zimbabwe Power Company (ZPC) operations director Engineer John Chirikutsi, ZPC finance director Mr Hubert Chiwara, ZETDC managing director Engineer Julian Chinembiri, ZETDC finance director Thokozani Dhliwayo, Zesa Enterprises (Zent) managing director Mr Tererai Mutasa, plus two Zent managers identified as Tichivangana and Dafana.

ZPC general manager Mr Washington Mareya has been given three months notice.

Suspended are Zesa head corporate services Mr Rufaro Pasipanodya, Zesa public relations manager Mr Fullard Gwasira and Mr Obson Matunja from the audit department, all suspended pending investigations into possible personal use of Zesa vehicles or a potential fuel coupon scam involving $18 000.

Others suspended last week include section engineer metering Engineer Leonard Chitsina, and Mr Freeman Chikonzo, senior manager Information and Technology pending investigations on a potential fraud involving a local electrical company.

More bosses could be fired once other disciplinary hearings have been concluded while several survivors are said to have been “strongly warned”.

Efforts by The Herald to get a comment from the power utility were fruitless as acting spokesperson Ms Prisca Utete asked for questions in writing but had not responded since Monday.

Zesa board chairman Dr Sydney Gata declined to comment.

ZETDC acting managing director and commercial manager Engineer Ralph Katsande has been demoted.

He had been acting managing director since 2018.

After the forensic audit, he appeared before a disciplinary hearing and it was recommended that he should be demoted, and is likely to assume the general manager’s post for the Southern Region.

Another top official, Engineer Robson Chikuri, has been effectively demoted to become ZPC Bulawayo Power Plant manager. He was acting ZPC managing director.

“Engineer Milton Munodawafa, who was the general manager for Harare has been moved to Bulawayo and will be general manager for Western Region.

Other senior staff have been moved up the ladder to take over key posts in acting capacities.

The post Zimbabwe: Zesa Fires Managers appeared first on Zimbabwe Today.

The National Social Security Authority (NSSA) has been dragged to court by United Arab Emirates’s Smart Link for failing to pay a debt amounting US$220 000.

The debt, according to the firm, arose back in 2018 after the two parties entered into a contract following the awarding of a tender to Smart Link to develop and implement a self- service portal for NSSA.

The total cost for the project was US$221 250.

In papers now before the High Court, the parties then entered an addendum for additional works and Smart Link was contracted again for the designing and integration of the self-service portal with banks and telecommunication companies to facilitate on-line payments.

“It was a further term for the contract of the work quoted plaintiff (Smart Link) would charge USD234 000 and it was agreed that the quoted price would be paid as follows; one hundred percent upon signing of the agreement, 60 percent being payable to Smart Link bank account in Dubai and the other 40% payable to the local account in the name of Global Smartlink,”reads part of the company’s declaration.

The total amount in terms of the tender and the addendum agreement to be paid by NSSA was US$435 250 but NSSA only managed to pay US$225 250 and to date, has failed to settle the debt.

“Plaintiff proceeded to carry out its obligations in terms of the agreement to the satisfaction of the defendant (NSSA). The defendant paid US$225 250 and an outstanding balance of US$210 000 remains unpaid to date.

“Despite numerous demands, the defendant has failed and or neglected to pay the plaintiff the outstanding amount, notwithstanding acknowledging the debt.

“Plaintiff has taken all necessary steps in engaging the defendant through mutual consultations as provided for by the agreement, but all efforts have been futile,” said Smart Link.

The company now wants an order that it be paid the balance of $210 000 and interest at the rate of 2 percent per month calculated from July 2018 to date of final payment and pays for the cost of suit on attorney client scale.

NSSA is yet to file its appearance to defend on the case.

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In discussing business opportunities more often than not people discuss business lines that generate foreign currency. Mining features prominently especially gold mining as well as gold buying and selling. This article focusses on buying gold and selling it to Fidelity Printers and Refiners (“FPR”).

FPR is a wholly owned subsidiary of the Reserve Bank of Zimbabwe. Its main business includes security printing and gold buying and refining.

In Zimbabwe all gold won from mining activities should be sold to FPR. FPR is the sole authorised gold buyer in the country.

All large scale miners, small scale miners and holders of gold buying permits should sell their gold to FPR. FPR then handles export of the yellow metal.

Many people are interested to know how they can lawfully buy gold and sell it to FPR, at a profit. One needs a gold buying permit from FPR. The proposed criteria for issuance of gold buying permits issued by FPR in January 2020 give guidelines explained below.

There are basically two categories of licensed gold buyers, namely:

Non custom millers or elution plant owners and

Custom millers and elution plant owners.

Non custom millers or elution plant owners

This category is made up of people or entities that are not involved in the operation of custom mills or elution plants. Custom mills are used to mill or crush ore for further processing to win gold otherwise known as bullion. The elution plant is part of the gold recovery process.

In order to be considered as prospective gold buying agents applicants in this category should meet the following criteria:

Police clearance for individual buyers or company directors or agents,

Propose under the current licence or make commitment of gold quantities one can buy per month,

Companies to provide a company profile and directors names and their physical addresses,

Passport size photos for the principal licence holder and company directors,

Current tax clearance certificate for companies.

Custom millers and elution plant owners

This category is made up of operators of custom mills and elution plants. For consideration prospective buyers in this category should submit:

Current licence for the custom milling plant and/ or elution plant issued by the Ministry of Mines and Mining Development and

Current tax clearance certificate

According to the said guidelines all custom millers are FPR’s gold buying agents in terms of section 3 of the Statutory Instrument 178 of 2005.

In addition to the above criteria, a prospective gold buyer under either category should submit a survey showing prospective sellers of gold to the prospective gold buyer and the following must be met:

Quantities that a seller is willing to sell to the prospective buyer per week or per month,

Identity documents and phone numbers of such prospective sellers of gold to the prospective buyer,

The prospective sellers must countersign.

How one makes a profit

For gold delivered by the licensed gold buying agent FPR pays prices which are set from time to time relative to the international gold price.

In order to make a profit the cost of gold bought by the agent and attendant operating costs should be lower than the price paid by FPR. FPR’s payment structure is reviewed from time to time as to the split between foreign and local currency.

Gold buying centres

For convenience FPR has gold buying centres around the country as more fully appears on the company’s website.

This simplified article is for general information purposes only.

For further information please contact Fidelity Printers and Refiners or your investment advisor.

Godknows Hofisi is a legal practitioner, chartered accountant, corporate rescue practitioner, and consultant in deal structuring and tax. He writes in his personal capacity. He can be contacted on +263 772 246 900 or [email protected]

The post Zimbabwe: Gold Buying As an Agent of Fidelity Printers and Refineries appeared first on Zimbabwe Today.

Residents of Stoneridge Park in Harare have apologised to Zesa Holdings for contracting a former employee of an approved contractor to make illegal electricity connections at their houses in a bid to cut costs.

The residents, through their committee, apologised in a written statement yesterday after meeting Zesa officials and their contractor, Ethood Electrical Engineering Company, operating as Luckstone Concrete.

The illegal connections are believed to have been done by Peni Jaison (31), who was once employed by the Harare company.

A $25 000 reward has since been offered to anyone with information that might assist police in arresting Jaison whose whereabouts remain unknown.

“We write to apologise on behalf of Stoneridge Residents Association for subcontracting unqualified personnel and using substandard material in pursuance of the contract to Ethood. We apologise for the illegal connections.

“This was done to try and get the work done at a lower cost with no real intention to breach the contract,” reads part of the statement.

In an interview, Luckstone managing director Mr Melvin Gwishiri said they had also taken into consideration the plight of residents who were struggling to have their area electrified, considering the losses they have made in a challenging economic environment, and agreed to continue working together.

“The residents have also apologised to ZETDC and they have registered their desire to continue working with Ethood Electrical Engineering. We intend to hit the ground running immediately and complete this project within the shortest possible time,” he said.

On Monday last week, Zesa disconnected over 1 500 households in Stoneridge Phase 1, Harare South, after discovering the offence.

His former employer had the contract, but residents thought the costs were too high and hired Jaison, who was cheaper since he allegedly used the company’s poles and cables without paying.

Jaison has since gone into hiding and efforts to locate him have been fruitless as police and Zesa Loss Control officers are keen to question him in connection with the alleged offence.

People with information can contact their nearest police station or Zesa Loss Control offices or call 0772 816 606 and 0717 418 485.

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The state-owned National Railways of Zimbabwe has spent more than US$319 000 on six luxury cars for top managers, amid allegations the money was diverted from a purse meant for the refurbishment of locomotives, sparking outrage from workers who are owed salaries dating a year back.

Nkululeko Sibanda

The vehicles comprise a Toyota Land Cruiser, three Toyota Fortuners for the line directors and two Toyota Hilux double cabs for other senior managers. Sources said the Land Cruiser has already been delivered to Bulawayo.

Locomotives are seen as a major component of the NRZ’s operations. One of the company’s corporate clients, Zimasco, recently complained that the rail transporter lacks the locomotives to adequately ferry its goods. Zimasco has had to hire two locomotives from South Africa on behalf of the incapacitated NRZ.

The development comes as reports from the railway operator suggested that six locomotives were due to be refurbished before management allegedly re-directed the resources to the purchase of the luxury vehicles.

“The directors and the general manager are getting new cars very soon. The vehicles were procured from Toyota South Africa. The payment was signed off by the director of finance as well as the general manager. It was a highly confidential matter but we have come to know that this is what they have done as workers,” a source said.

Information supplied to the Zimbabwe Independent showed that general manager Lewis Mukwada had selected the latest edition of the Land Cruiser for himself.

Interestingly, Mukwada is said to be on a short-term contract after his initial tenure at the helm of the NRZ is said to have come to an end in 2019. It is understood Mukwada, a former director of technical services, had his tenure extended up to the end of this month by the parastatal board.

“Regulations in place state that anyone on a short-term contract does not deserve a new vehicle. There are questions as to how Mukwada, whose term as general manager comes to an end at the end of the month, deserves a new vehicle altogether — a vehicle as expensive as a Land Cruiser,” queried a source.

Toyota South Africa sells the cheapest version of the Land Cruiser for R1 107 900 (US$55 400). The landing price would have shot up considerably, factoring in import duty and transportation.

“The other directors have bought themselves Toyota Fortuner vehicles, three of them. All those vehicles cost in excess of R6 million. There are two other twin cabs that have been bought, we understand, alongside the other vehicles. All this is happening when the six locomotives are awaiting refurbishment,” the source said.

Another source told the Independent said:

“Transport Minister Joel Biggie Matiza asked the board to ring changes in the management and bring in new blood and fresh ideas.

We have to ask whether these cars are being bought for legitimate reasons or there is a deliberate intention to include the cars in the managers’ exit packages,” a source said.

Sources also revealed that the purchase of the vehicles happens at a time the broke company is in salary arrears dating back 17 months.

“Some NRZ workers are owed salaries for the last 17 months. The company is quiet about this. But you have some people buying vehicles,” the source said.

Contacted for comment, the NRZ was coy on the matter, with management claiming that the parastatal bosses were entitled to the vehicles.

In a statement approved by Mukwada, the NRZ management said it deserved new cars because the current ones were now “dilapidated and old and were becoming a source of embarrassment.”

“NRZ senior and executive management are issued with company vehicles in terms of their conditions of service. The type of vehicles issued is governed by a circular issued by the Office of the President and Cabinet,” read the NRZ response in part.

“As part of the conditions of service, NRZ management were supposed to be issued with the vehicles in 2011/2012. However, due to cash-flow challenges the organisation was facing, it was not in a position to procure the vehicles. The managers were requested to continue using the vehicles they had been issued during the period 2006-2009,” the statement added.

“The situation reached a point where the vehicles being used by the managers were now dilapidated and were now a source of embarrassment when dealing with customers and other stakeholders. Authority was sought from the board, the ministry, and the Office of the President and Cabinet to procure new vehicles, as is procedural, and the permission was granted,” the statement added.

The NRZ revealed that it has spent US$319 000 on the new vehicles.

However, the parastatal’s workers are questioning why management had seen it fit to splurge on vehicles now, given the current state of NRZ’s finances.

The post Zimbabwe: NRZ Splurges U.S.$319k On Vehicles appeared first on Zimbabwe Today.

The Reserve Bank of Zimbabwe (RBZ) has moved to place the country’s mobile money platforms under strict surveillance by compelling them to join the Zimswitch platform.

In a statement Thursday, central bank governor John Mangudya announced the new directive which he said must be completed within the following month.

“In accordance with the provisions of the National Payment Systems Act (Chapter 24:23) and the Mobile Banking and Mobile Money Interoperability Regulations, Statutory Instrument 80 of 2020 , the RBZ wishes to advise the public that it has designated Zimswitch as a national payment switch with immediate effect,” he said.

Zimswitch is the sole national electronic funds switch and clearing house specialising in processing domestic card-based ATM and POS and EFT transactions amongst member financial institutions in real time online.

It facilitates the common utilisation of industry infrastructure.

The system enables easy tracing of payment sources and recipients which makes it easier for the central bank to track down illicit financial dealings.

The current mobile money transfer systems used by platforms like Ecocash does not easily give access for the regulator to effectively monitor transactions.

Under the new regulations, all mobile money transmission providers and mobile banking providers are supposed to be connected to Zimswitch as provided for by section 4 of the regulations.

“To ensure seamless integration, all money transfer providers must complete the necessary installation or deployment or commissioning of infrastructure connection protocols, credentials and documentation for connection to Zimswitch by no later than August 15 2020,” Mangudya added.

Zimbabwe is currently battling to contain spiralling exchange rates on the parallel market which rose to around 1:120 against the US dollar last month.

Authorities in the banking sector levelled the blame on mobile money transfer platforms, accusing them of not thoroughly monitoring the systems which were taken advantage of by illegal foreign currency dealers.

Market watchers have suggested the setting up of one national switch for all transactions in order to curb the market discord.

The post Zimbabwe: RBZ Places Mobile Money Platforms Under Strict Zimswitch Surveillance appeared first on Zimbabwe Today.

Acting Petrotrade chief executive officer Godfrey Ncube says the liberalisation of the fuel sector was the best way the country could deal with endless fuel shortages that have seen motorists queue for days for the precious liquid throughout the country.

Giving oral evidence before parliament’s Energy and Power Development Committee Thursday, Ncube said the current situation could only be solved if suppliers and retailers could be allowed to buy and sell the product in US dollars.

“Let me just be clear here, I did not specifically say government should now let companies do what they want, buy fuel whichever way they can.

“All I said was that under these circumstances, the model that can also be adopted and can work is that the sector can be liberalised and companies allowed to look for their own fuel.

“Companies are in business and if they are told to look for their own fuel, they will look for that money.”

Ncube warned his proposal could however result in hiking of prices of goods and services as usually happens when there are increases in prices.

He added: “However, prices will rise and that is not favourable for government and it will be difficult, government is still subsiding fuel.

“If the situation continues to deteriorate like this, it will be better that government adopts a liberalised system, liberalised in terms of procurement.

“… As far as procurement is concerned, you will realise that you would have liberalised the pricing of it.”

Ncube told the Joel Gabuza chaired committee that the Reserve Bank of Zimbabwe’s (RBZ) foreign exchange auction was failing to benefit fuel dealers who were being forced to charge prices that could mean most of them were running losses.

Zimbabwe has been facing intermittent fuel shortages since the scrapping of a multi-currency system by government in 2019.

The system had been sustained since 2009 when government officially dumped the national currency for a basket of foreign ones.

Not all suppliers are allowed to trade in US dollars while those granted licenses to do so can only sell at particular filling stations.

The post Zimbabwe: Govt Urged to Liberalise Fuel Sector to End Shortages appeared first on Zimbabwe Today.

The Movement for Democratic Change Alliance (MDCA) is pinning its hope on the scheduled 31 July demonstration that President Emerson Mnangagwa will be ousted from office.

The party’s youth assembly spokesperson, Stephen Chuma said the demonstration is certainly going to mark the end of Mnangagwa’s short but ‘brutal dictatorship’.

“In his short spell as the President albeit through stealing elections, Mnangagwa has presided over untold suffering, repression and oppression that has never been witnessed before in this land,” said Chuma.

The MDCA youths spokesperson accused president Mnangagwa of misruling the nation and human torture of citizens by the uniformed forces.

“It was under Mnangagwa when we first witnessed senseless butchering with live ammunition of defenceless citizens by rogue soldiers,” he said comparing him to his predecessor, the late president Robert Mugabe.

He said that the hope is on the 31st of July that if masses go into the streets the President will be chunked out of the office.

“The people are going to stop at nothing to make sure he is gone. Nothing, nothing and I repeat nothing at all is going to save this man whose corrupt and murderous regime is responsible for the worst economic crisis since the lapse of GNU,” said Chuma.

He also accused Mnangagwa of masterminding alleged abductions of opposition and civil society members as there has been an increase in those cases since he came to power including the recent alleged abduction and torture of three MDCA women your leaders Cecilia Chimbiri, Netsai Marova and Joanna Mamombe.

He added, “It is under Mnangagwa that a new phenomenon called ‘catch and release’ mushroomed to habour corrupt cabinet criminals like his clansman Obadiah Moyo.

“We, the citizens have run out of patience and we just can not afford another day with Emmerson Mnangagwa as the President. 31 July must be the last straw for Mnangagwa!”

Meanwhile, citizens and other political parties are supporting the Transform Zimbabwe initiative to demonstrate against Mnangagwa.

However, fears are that the government will try to stop the protest after remarks by Permanent Secretary in the Ministry of Information, Publicity and Broadcasting Services, Nick Mangwana hinted that Harare and Bulawayo may be totally shut down following a sharp rise in coronavirus cases.

Information Minister Monica Mutsvangwa also urged political party leaders to consider the health of the masses considering the way coronavirus cases are shooting the roof.

The government has previously responded with sheer force to massive protests.

Posting on his twitter handle Mangwana said: “Harare has the vast majority of Covid-19 cases. Yesterday (Tuesday), Bulawayo recorded 30 of the 53 positive cases. If there is any scaling up of containment measures, a more surgical approach is better. It means full-scale lockdown should only apply to Harare and Bulawayo.”

The country has been in a total lockdown since March 30 to contain the spread of the virus, but later eased and most businesses have been allowed to re-open.

The post Zimbabwe: ’31 July the Last Straw for Mnangagwa’ appeared first on Zimbabwe Today.

The Reserve Bank of Zimbabwe (RBZ) has directed all mobile money service providers to cross over to Zimswitch Technologies (Pvt) Ltd as their national payments switch with immediate effect.

It remains to be seen whether Econet, which enjoys a lion’s share of the mobile money market and is locked in endless tussles with the authorities, will abide by the directive or challenge it in court.

Zimswitch is a payments technology company founded in 1994 through a collaboration of several local banks. According to Zimswitch’s website, the company has a membership of 24 participants which include banks, mobile network operators and third-party payment systems.

“In accordance with the provisions of the National Payment Systems Act [Chapter 24:23] and the Banking (Money Transmission, Mobile Banking and Mobile Money Interoperability) Regulations, Statutory Instrument 80 of 2020 (the Regulations), the Reserve Bank of Zimbabwe (the Bank) wishes to advise the public that it has designated Zimswitch as a national payment switch with immediate effect,” said RBZ governor John Mangudya, in a statement on Thursday.

“All mobile money transmission providers and mobile banking providers are hereby directed to be connected to Zimswitch as provided for by section 4 of the Regulations.”

He added: “To ensure seamless integration, all money transmission providers and mobile money providers must complete the necessary installation or deployment or commissioning of infrastructure and connection protocols, credentials and documentation for connection to Zimswitch by no later than 15 August 2020.”

The banks that formed Zimswitch are Beverley (now CBZ Building Society), Barclays (now First Capital Bank), CABS, Founders Building Society (later renamed Intermarket Building Society that was bought by ZB Financial Holdings), Stanbic Bank Zimbabwe, and ZB Bank.

CBZ Bank and Time Bank joined in 1995 and 1997 respectively.

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The  Grain Marketing Board (GMB) has dragged a local company Reapers (Pvt) Ltd to court demanding payment of US$200 000 for groundnuts exported to South Africa in 2018.

GMB is seeking leave to execute a High Court ruling directing the company to pay the government grain US$200 000.

Court papers show parties had entered into an agreement for Reapers to export the groundnuts.

However, the company is now contesting paying US$199 684, 24 and wants to return groundnuts that were not exported out of 232 188 metric tonnes.

The court heard in January 2018, the parties entered into an agreement to jointly supply shelled groundnuts to a South African registered company called Casmara (Pvt) Ltd (Casmara).

This was followed by an addendum signed on January 30 which duly amended some of the terms of the agreement.

GMB then approached the court seeking payment of 80 percent of the proceeds received or due by Casmara (Pvt) Ltd together with payment of US$199 684, 24 as its pro rata share of the sold ground nuts.

This was after the parties had failed to agree on the implementation of the agreement and GMB further sought an order to uplift 232 188 metric tonnes of groundnuts from Reapers Rusape depot which was 80 percent of the unsold groundnuts.

The court heard Reapers opposed the claim stating that GMB’s contribution amounted to 53, 87 percent of the value of the receipts and not 80 percent.

The disputes resulted in a High Court order being granted in favour of GMB for Reapers to pay 80 percent of all proceeds received and due from Casmara subtracting what had already been paid.

“The applicant is entitled to 80 percent of the 290 235 metric tonnes of the groundnuts which had not been exported and that respondent deducts 156 727 metric tonnes already collected by applicant,” read the said order.

“In the event that the respondent is unable to render specific performance in respect of the groundnuts which were not exported, the respondent shall pay the applicant, the value of the groundnuts at the rate which Casmara bought them.”

However, on May 20, Reapers noted an appeal against the judgement in the Supreme Court.

GMB says the appeal is incompetent.

“The appeal filed by the respondent is an abuse of the court process and a dilatory tactic aimed at delaying the performance or execution of the judgement of this court and in particular the delivery of the groundnuts which were not exported, as ordered by the court,” said GMB chief executive officer Rockie Mutenha.

The matter is pending.

The post Zimbabwe: GMB, Partner Row in U.S.$200k Groundnut Deal Gone Wrong appeared first on Zimbabwe Today.

United Bulawayo Hospitals (UBH) Acting Chief Executive Officer, Narcisius Dzvanga has bemoaned the depleting number of nursing staff at the hospital due to coronavirus induced absenteeism.

This comes after 18 nurses who had been attending a Covid-19 infected patient recently tested positive for the global pandemic and have been forced to go on quarantine.

Dzvanga, who is also Clinical Director, said the number of his staff members kept decreasing because of this tragic event.

“We find ourselves hit hard by the Covid-19 pandemic, this time affecting our members of staff which has been happening all these months,” said Dzvanga.

He was addressing the media Thursday during the hand-over ceremony of two ventilators donated to the health facility by the Zimbabwe Red Cross Society.

He added: “This is the first time we have had such a large number of staff all testing positive at once and that impacts heavily on service delivery.

“The patient and every member of staff who was working in the ward at the time all had to go on quarantine and that means we have to scout for replacements from other wards.”

Dzvanga said what was surprising was that the 18 nurses who tested positive were from Ellis Ward, a place where people who are traumatised as a result of road traffic accidents and other injuries are taken care of.

He also encouraged those visiting the hospital to wear Personal Protective Equipment (PPE).

“All the members of staff, visitors and patients must wear maximum PEP requirements.

“We continue to train our staff so that they remain conscious of the hazards of the pandemic but we still have to find out how it happened that so many numbers came up from one ward,” he said.

The post Zimbabwe: UBH Boss Bemoans Depleting Nursing Staff Due to COVID-19 Quarantine appeared first on Zimbabwe Today.

Zimbabwe’s real gross domestic product (GDP) is projected to contract by between 7,5% and 8,5% this year due to a fall in production as a result of the outbreak of the Covid-19 pandemic, the African Development Bank (AfDB) has said.

In its African Economic Outlook 2020 Supplement Amid Covid-19 report, the regional banking institution said the country is unlikely to achieve previously projected growth which was expected to reach 4,6% this year and 5,6% next year, due to challenges posed by the pandemic.

The country had projected to achieve real GDP growth of 4,6% in 2020 and 5,6% in 2021 if corrective measures were taken to stabilise foreign exchange supply and avoid excessive money creation.

Recovery was expected in agriculture and mining, backed by increased and well-targeted investment.

“But production is now expected to fall in both sectors, largely due to the outbreak of the pandemic and associated shocks and policy actions to limit the infections.

And reductions in tourism earnings will exacerbate foreign exchange shortages,” AfDB said in its report.

“As a result, the economy is projected in 2020 to contract by between 7,5% if the pandemic subsides by July (baseline) and 8,5% if it continues through December (worst case), with modest recoveries in 2021,” it said.

AfDB said the fiscal deficit was expected to remain above 5% due to the negative effects of the tax relief measures and weak business activity.

The Zimbabwe Revenue Authority has reported that the Covid-19 pandemic has greatly affected revenue collection with targeted revenues likely to be missed.

In April 2020 (the first month of the lockdown), its revenues were about 6,9% below their target for the period, a trend expected to continue.

Although the Reserve Bank of Zimbabwe adopted accommodative monetary policy to ease market liquidity constraints, AfDB said the effect was likely to be offset by carryover structural weaknesses, including shortages of foreign exchange and lack of confidence in the Zimbabwean dollar.

“Inflation is therefore projected to average 217% in 2020 (worst-case scenario), amplified by the Covid-19-induced shocks. Since the unpegging of the exchange rate from the US dollar in February 2019, the exchange rate depreciated from ZW$2,5 to ZW$25 (over $70 in parallel market) per US dollar in May 2020,” it said.

“The deterioration of the trade balance and secondary income account will push the current account to a deficit territory of 2,0% of GDP in 2020 (baseline) which could widen further to 2,7% (worst case), wiping out a surplus of 1,1% posted in 2019.”

AfDB, however, said Zimbabwe can emerge from the current health and economic crisis strongly.

“The country’s vast natural resources, public infrastructure still in relatively good condition, and a skilled labour force give the country an opportunity to join supply chains in Africa and increase trade within the context of the African Continental Free Trade Area,” it said.

“Coupled with policy responses to restore stability in the foreign exchange market and control inflation, the economy could modestly recover in 2021,” AfDB said.

The post Zimbabwe: AfDB Revises Zim Economic Outlook appeared first on Zimbabwe Today.

Seventy percent of foreign currency on offer at each Tuesday auction will be allotted to winning bidders paying for imports listed as priority level 1 on the import priority list, with the remaining 30 percent allotted to successful bidders for goods and services set at priority level 2, the Reserve Bank of Zimbabwe has announced.

Bids now have to be submitted through the bidders’ banks by 3pm on the business day before the auction, normally a Monday unless the Monday is a public holiday.

In the first three auctions, bidders had until 9am on the auction day to submit.

Restating the rules for the foreign exchange auctions yesterday, with extra details and modest amendments, RBZ Governor Dr Mangudya said the first three auctions had been conducted successfully since June 23.

But to “enhance transparency and efficiency in achieving the primary objective of price discovery” the bank had decided to restate and reset the operating rules.

Bids are being rejected for non-compliance with rules, with the main problems reportedly being multiple bids, bidders who have not cleared the paperwork for their own exports, and bidders who have cash in their nostro accounts and have not explained why they need more.

The nostro balance issue has now been made more precise so bidders with such balances can only bid if their nostro balances are less than what they need.

These restated rules are now as follows.

l Bids remain between a minimum of US$50 000 and a maximum of US$500 000 and must be in US dollars.

l Bidders can submit only one bid for each auction, and if there is more than one then all bids by that bidder will be rejected.

l Bids submitted by bidders who have overdue export receipts or who have not acquitted their foreign payments will be rejected.

l Bids from bidders in with positive nostro balances equal to or greater than the bid amount will be rejected.

l Bids must be submitted through authorised dealers, that is banks, by 3pm on Monday or, if Monday is a public holiday, the business day before the auction.

l Bidders must “provide in their bids sufficient details of the purpose of funds and description of goods or services to be paid for”.

l Foreign currency will only be allotted for the purpose laid out in the bid and using it for any other purpose will not be permitted.

l Foreign currency will be allotted to winning bids according to the import priority list (70 percent priority level 1 and 30 percent priority level 2)

The post Zimbabwe: RBZ Allots 70pc of Auction Currency to High Priority Imports appeared first on Zimbabwe Today.

Genius Kadungure’s gas company, Piko Trading, was yesterday fined $36 000 and ordered to pay $2 512 149,80 that it owes Zimra in taxes after it failed to pay Value Added Tax (VAT) between February 2009 and May 2016.

Harare regional magistrate Mr Crispen Mberewere also fined Piko Trading, which was represented by Kadungure, $9 000, and ordered it to pay $355 559 in outstanding company taxes that it failed to pay after recording sales amounting to $24 187 026.

The firm was ordered to pay the fines immediately and settle the outstanding amounts by August 31, 2020.

Piko Trading, through its director Kadungure, admitted to the two offences.

In sentencing the gas firm, Mr Mberewere noted that the money could have added value to the fiscus had it been paid on time considering the inflationary environment has been prevailing from the time the offences were committed.

The company was cleared of charges of smuggling gas into the country and Kadungure, who was being charged in his personal capacity, was found not guilty of failing to declare income returns to ZIMRA.

In his judgment, Mr Mberewere expressed dissatisfaction over the State’s failure to properly investigate allegations that Piko Trading was smuggling gas into the country.

Mr Mberewere said the Act governing the importation and sale of gas were very clear and the charges against the company would have fallen off if the prosecution had handled the matter properly.

“I am baffled by the level of investigations and if the investigating officer was competent enough, he would have checked the Act,” he said. “A mere check of the Act would have saved time.”

Mr Mberewere said Kadungure had shown just cause why he failed to declare the income returns to ZIMRA when he said he was living outside the country and thought he was not obliged to pay the tax.

The State led by Mr Andrew Kumire had alleged that Piko Trading between January 2015 and March 2016 smuggled about 5 289kg of liquefied petroleum gas into the country, and did not pay $672 533 in taxes.

Further, the State had alleged that Kadungure in his personal capacity failed to submit documents about his income to the Commissioner of Taxes from January 2010 to December 2015 as required by the Income Tax Act, giving rise to the charge of failing to pay $119 860,93.

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A person usually loses culture because of a change in environment.

Such a change may be due to immigration and when an individual attempts to merge many different cultures into one, the individual ends up with no culture at all. The culture of a people is their identity as it affords them due recognition.

It has been found that there is a positive relationship between the local family structure and the foreign culture. In sub-Saharan Africa, people and culture are inseparable since there is no denial of the fact that what makes any human society is its culture; a Latin word which was derived from “colore” meaning to practice or cherish. A society must be cultural and therefore, society and culture are intertwined.

In the same vein, going by the theory of environmental determinism, the culture of any society is largely dictated by its geography. Put in another way, there is conspicuous sociological interplay among the concepts of culture, nurture, and nature.

Zimbabweans in diaspora are comforted by the thought that one day, they will send their children back home to learn and understand the Zimbabwean culture. Many have cultivated the thought of sending their children to Zimbabwe for cultural lessons as a noble idea.

In this thought, the reality from Zimbabwe is disappointing. It cuts through the soft spots of the heart giving a sharp pain of disappointment.

Zimbabweans back home are losing their identity, their culture and values. It seems those who remained in the country have failed to hold fort and they are giving more value to everything from the West more than our own.

It is painful that modernisation is now ruining our culture. Culture is the identity or feeling of belonging to a group. It is part of a person’s self-conception and self-perception and is related to nationality, ethnicity, religion, social class, generation, locality or any kind of social group.

Cultural (and ethnic) identity is a subset of the communication theory of identity that establishes four ‘frames of identity’ that allow us to view how we build identity.

Mika Shumba of Milton Keynes, the United Kingdom said: “I was horrified during the burial of the late national hero Oliver Mtukudzi that a Zimbabwean dancer offended our culture by her raunchy dance style in honour of Mtukudzi.”

Some songs played on national radio stations are vulgar.

A tradition is a belief or behaviour passed down within a group or society with symbolic meaning or special significance originating in the past. Common examples include social norms such as greetings.

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Local banks have significant financial capacity to lend to corporates that require working capital to support recovery from the Covid-19 pandemic, recent economic research findings have revealed.

The latest available banking sector statistics show the sector has potential to play a key role in supporting the recovery of the corporate sector from the impact of Covid-19, the Zimbabwe Economic and Policy Research Unit (Zeparu) said.

“At 38,82 percent against a benchmark of 70 percent, the loan-to-deposit ratio suggests that banks have room to increase credit for those companies that may need working capital,” Zeparu said in its Economic Barometer Volume 21.

The capital adequacy ratio is more than three times the regulatory requirement of 12 percent. The liquidity ratio (75,59 percent) is also high, more than double the regulatory requirement of 30 percent.

Further, Zeparu said non-performing loans are also under check at 3,23 percent against a benchmark of 5 percent, although they might increase due to the economic slowdown from Covid-19.

As at end of December, total banking sector assets were $53,7 billion, total loans and advances stood at $10,2 billion, while total deposits were pegged at $34 billion.

The Covid-19 pandemic is projected to severely impact on the global economic growth from 2,9 percent in 2019 to minus 3 percent in 2020.

Countries have had to incur huge costs to protect human lives and allow health care systems to cope.

Further, measures to contain the spread of the pandemic have required isolation, national lockdowns, and widespread closures, thereby slowing economic growth across the globe.

Global growth forecast is still characterised by uncertainties although the initial forecast for 2021 is a growth of 5,8 percent.

In 2021, growth of big economies in the region like Nigeria and South Africa is expected to recover from -3,4 percent to 2,4 percent and from minus 5,8 percent to 4 percent respectively.

The post Zimbabwe: Banks Have Capacity to Lend Corporates appeared first on Zimbabwe Today.

Revelations this week by industrial leaders and confirmation by the tax authorities of potential loss of customs duty revenue amounting to nearly US$1 billion annually through smuggling and exploiting loopholes within customs processes call for urgent action and solutions to stop the haemorrhage.

The fact that Treasury could be losing so much money shows just how much faster Zimbabwe could advance.

Government should upgrade many of its services by simply addressing border security issues, holes in the customs systems processes and infrastructure deficiencies. With more tax money a lot more can be done

Corruption by some Zimbabwe Revenue Authority officials and agents manning our entry points has to be checked because all the smugglers are seen by someone or their free movement is actually facilitated.

Captains of industry and commerce said apart from prejudicing Treasury of resources needed for essential Government programmes, duty and tax evasion compromised the viability of businesses that abide by all customs requirements.

Taxes are a cost, a necessary one, and those who escape paying them can undercut the legal businesses.

This smuggling should be stopped forthwith because it overburdens law abiding good corporate citizens who continue to be saddled with the responsibility of contributing towards national development while others enjoy the facilities for free.

Deliberate tax and duty evasion is a common practice across the world, but while the phenomenon is known and not peculiar practice to Zimbabwe, efforts must be made to stop or reduce it because it has serious financial implications to national development.

The Zimbabwe National Chamber of Commerce has since called on Government to give Zimra the resources needed to deal with problem issues regarding administration of customs processes and border security deficiencies.

Zimra said while it was difficult to give credible estimates of potential customs duty lost to illegal imports and actions designed to evade or suppress duty, smuggling remained rampant despite the measures it has instituted to curtail the vice.

So in a way it means the measures Zimra is putting in place do always work as well as hoped, or that some are deliberating helping the evaders.

Amid changing global trends business leaders say the Government through Treasury should urgently allocate funds towards improving efficiency of border control systems and modernise the infrastructure at the ports of entry.

Given that issues of border surveillance involve a number of State agents, including the security forces, efforts must be made to ensure that all stakeholders work closely with the customs officials to plug leaks from smuggling, infective customs and porous national borders.

It is heartening to know that efforts are underway to rope in security forces such as the military to effectively monitor and carry out surveillance in remote and dangerous places such as parts of the Eastern Highlands of Zimbabwe, which may have landmines in certain places, but resources needed to acquire appropriate vehicles are a stumbling block.

Importantly, Government needs to ensure that all State agents work hand-in-glove to address issues stifling efficient customs systems, effective border controls and giving way to unrestrained smuggling.

Tax authorities have indicated that resources were standing in the way of planned programmes like border surveillance of water boundaries such as Kariba and Zambezi River, which needs to be looked into without further delay.

Notably though, discussions are underway with security establishments and the aviation authorities for use of regulated equipment such as drones for border and airport surveillance, and we applaud these efforts as they will help enhance the security of border areas and curb illegal activities.

Commendable is also the fact that efforts are underway to counter the incidence of rampant smuggling, with Zimra recently saying focus was now on implementing a new US$10 million tax and revenue management system, which is funded by the African Development Bank.

The post Zimbabwe: Upgrades Will Plug Smuggling, Loopholes appeared first on Zimbabwe Today.

Mashonaland Central is set to become the centre of economic activities following yesterday’s commissioning of the $16 million Pembi Bridge in Mvurwi by President Mnangagwa to boost road transport.

The commissioning set the tone for the province’s enhanced tapping into its rich mineral, agriculture and tourism resources in line with Vision 2030.

Pembi Bridge replaces the old low lying single-carriage bridge constructed around 1974 that was making road transport very difficult and effectively unfriendly to investment.

In a speech read on his behalf by Vice President Kembo Mohadi, President Mnangagwa stressed that the provision of modern infrastructure was essential in facilitating the country’s economic growth and drive to become a middle income economy.

The bridge and its road approaches was constructed from Government resources between August 2017 and September 2019 and links various districts in the province as well as other areas in the country.

“Modern and appropriate infrastructure remains a key enabler to accelerated economic growth and development as well as achievement of our National Vision 2030.

“Hence completion of this bridge is a notable impact on the accessibility of this area and enhance the safety of road users,” President Mnangagwa said.

The old bridge was a high accident spot with 47 accidents being experienced there in the past years.

The President said Government would continue prioritising allocation of resources for infrastructure projects with many roads and bridge construction ventures already underway in various areas across the country.

Such projects include the Mvurwi-Kanyemba road to speed up the development of a new town in Kanyemba and subsequent links to Zambia, Mozambique and the DRC.

The President also challenged various districts connected by the new bridge to use it for their development and improve the province’s GDP.

“You should never permit a situation where you are mere spectators to development. Be active participants.

“Rest assured that Government under my leadership will continue to facilitate an environment where you can succeed.

“The prosperity and achievement of higher standards of living for our people, no matter where they live, is important to my administration,” President Mnangagwa said.

He implored rural district councils to facilitate participatory development and carry out projects that benefit local communities and trigger broad-based development.

Transport and Infrastructure Development Minister Joel Biggie Matiza said they were implementing various projects countrywide in line with the President’s vision saying such developments were necessary in reducing cost of production in the economy.

The event was also attended by Mashonaland Central Provincial Affairs Minister Monica Mavunga, Home Affairs and Cultural Heritage Minister Kazembe Kazembe, several MPs and senior Government officials.

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Transport shortages in Harare are forcing desperate commuters to pay bribes ranging from $15 to $25 to urban Zupco bus crews to jump the long queues and get a seat without a hassle.

Since March 30 when lockdown started, private commuter operators were pushed off the road leaving Zupco to enjoy monopoly of ferrying urban commuters to and from the city centre.

Zupco, which has a limited fleet, now appears overwhelmed, a development that is now fuelling corruption at bus terminuses.

The bribery also involves touts who control queues and those who sanitise passengers at various bus ranks in Harare and Chitungwiza.

Such corrupt activities are rife along Chitungwiza routes during peak hours when most commuters would be jostling to board the few available conventional buses.

Pirate taxis and other private motorists illegally ferrying passengers in Chitungwiza charge between $40 and $65 to get to the city centre and commuters are finding it cheaper to pay $20 bribe plus the heavily subsidised $6 to Zupco.

Those who pay bribes end up paying a total of $26, which is much cheaper than boarding private vehicles.

During week days, passengers start queuing for the ZUPCO buses as early as 2 pm.

Investigations by The Herald recently revealed that commuters spend close to three hours in a queue due to inadequate buses to ferry them to their destinations.

Bus crews and some touts working in cahoots with the bus crews, collect bribes at Pick n Pay shop near Charge Office bus rank.

Travellers state where they want to go before paying the bribe to the touts.

When the buses come, those who would have paid bribes are allowed to enter ahead of those in the queues.

A bus gets into the rank with at least 10 special passengers who would have paid bribes.

There are also known regular clients who do not join the queues but wait for the buses near Pick n Pay.

Drivers just pick them up before they get into the rank to ferry those in the queues.

Such regular clients pay the bribes inside the buses.

They also pay between $15 and $25 each, excluding the $6 official ZUPCO fare.

Asked to comment on the corruption, Zupco acting chief executive officer Mr Everisto Madangwa professed ignorance before vowing to take disciplinary action against any bad apples in the company.

“Please furnish me with an example so we take disciplinary action,” Mr Madangwa responded.

This writer went undercover to expose the rot.

He disguised as a desperate traveller outside Pick n Pay shop at Charge Office where buses were dropping passengers.

Though a considerate number of buses plying Chitungwiza route were picking some people outside the rank, several attempts by the reporter to board buses at TM entrance were fruitless as conductors preferred dealing with their regular clients.

It was only after the writer approached one of the drivers and asked for a favour to be allowed into the bus ahead of those in the queue, that he managed to get in.

He was asked to pay $25, which he handed over to the driver.

He was asked to join the other 10 “special passengers” who were already seated in the Zengeza-bound Zupco contracted bus.

While inside the bus, the driver then collected money from the other 10 passengers before ferrying other commuters in the queue.

Tickets were issued out by the conductor later on.

Some commuters who were standing in the queue grumbled demanding to know why some 10 people were already in the bus but the conductor rubbished them saying they were “staff members”.

The post Zimbabwe: Desperate Passengers Swindled By Zupco Drivers, Conductors appeared first on Zimbabwe Today.

Churches have spoken strongly against the planned July 31 demonstrations by desperate opposition parties in the country saying such actions ignore the threat posed by Covid-19 and disregard existing conflict resolution platforms.

Zimbabwe is presently witnessing a spike in the number of Covid-19 cases with 20 deaths and more than 1000 positive cases, leading experts to call for a tightening of the current lockdown measures to curb the spread of the virus.

Already, the Government is mulling a raft of measures to help curb the spread of the flu-like disease that presently has no cure.

Addressing the media yesterday, the Zimbabwe Amalgamated Council of Churches (ZACC) patron Mr Jimayi Muduvuri said from past experiences, opposition parties often organised violent demonstrations that ended up with the destruction of private properties and also infringe on the rights of other citizens.

“We therefore condemn unreservedly this wanton propensity towards unbridled and thoughtless public demonstrations in the name of constitutional rights. As the leadership of ZACC, a coalition of churches that come from different backgrounds and theological positions, we are a living demonstration and example of peaceful co-existence and tolerance for differences”.

Although President Mnangagwa has set up a platform where political parties can ventilate their grievances, and has vowed to clamp down on corruption with tangible results, the country’s opposition parties are planning a demonstration, ostensibly to register disquiet over corruption but really to subvert a constitutionally elected Government.

“We know that our responsibility as churches is to preach peace, love and unity as commanded by the Almighty God and we pledge ourselves to continue promoting the values of peace and unity and national development. We are concerned that there are people who still believe that public protests and demonstrations are a viable method to resolve perceived national problems,” he said.

Mr Muduviri said there was no evidence that encouraging people to go onto the streets would diminish the support for the President and the ruling party because all demonstrations thus far led by the opposition have only resulted in public disorder and with noon taking responsibility.

Destiny for Africa leader Reverend Obadiah Msindo said the planned demonstrations, that involve some prophets and pastors of doom, are not only ill-timed but also will not succeed.

“Everyone in Zimbabwe who has the interests of Zimbabwe should never support anything that could degenerate into violence. As was noted in previous demonstrations the opposition organises violent demonstrations. We witnessed destructive events from the so-called demonstrations. Anything that infringes on the rights of people should not be entertained. We must maintain peace so that we solve the problems that we face as a country. The church should refuse to be used by people with their own agendas, this has nothing to do with people’s interests. I have seen some pastors, the paid pastors, who are making money out of it, this is a money making project. All this effort of trying to remove the Government will not work of no use. Lastly why would a responsible opposition call for demonstrations when the country and the world is fighting Covid-19, this is unheard of,” said Rev Msindo.

Apostolic Christian Council of Zimbabwe president Archbishop Johannes Ndanga castigated some church leaders who are also planning the demonstrations saying at this point in time dialogue is the answer.

“What exactly do they want to solve. Churches should not engage in desperate moves which create tension in the country thereby destroying other people’s properties. We should move from old ways of doing things. We should focus on engaging, instead of plotting against the Government. We will not participate in any demonstration to fulfil the agenda of those who are power hungry.

“We have a different approach. We want to engage the Government, civic organisations and all political parties to ensure peace prevails in the country,” said Bishop Ndanga.

Although the country’s opposition, that is fading into political oblivion due to infighting, has often employed dirty tactics to subvert a constitutionally elected Government, the peace loving Zimbabweans have often snubbed the machinations.

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