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NATIONAL ASSEMBLY HANSARD 25 October 2016 43-08
PARLIAMENT OF ZIMBABWE
Tuesday, 25th October, 2016
The National Assembly met at a Quarter-past Two O’clock p.m.
(THE ACTING SPEAKER in the Chair)
ANNOUNCEMENT BY THE ACTING SPEAKER
2016 PRE-BUDGET SEMINAR
THE ACTING SPEAKER (HON. MARUMAHOKO): I have
to remind the House that all Hon. Members are invited to the 2016 prebudget seminar to be held at the ZITF Grounds from 2nd - 6th November 2016. All members were required to have confirmed their participation at the seminar with the Public Relations Officers by Monday 24th
I also have to advise that only Hon. Members from Manicaland,
Mashonaland East, Mashonaland Central, Mashonaland West and Harare Province will fly from Harare to Bulawayo. The rest will drive to Bulawayo.
HON. ENG. MUDZURI: Hon. Speaker Sir, I rise on a point of order as per Section 68 (d) of the Standing Rules and Orders. Our
Constitution provides in Section 106 on the conduct of Vice Presidents,
Ministers and Deputy Ministers. Section 106 demands that an Act of
Parliament must be provided on the code of conduct for Vice Presidents, Ministers and Deputy Ministers. We have not had this Act of Parliament coming to Parliament and we have gone so many months and years into the year.
Section 119 of the Constitution defines the role of Parliament as in sub-section 1, 2 and 3. Section 119 (2) reads; Parliament has power to ensure that the provisions of the Constitution are upheld and that the State and all institutions and agencies of Government at every level act constitutionally and in the national interest. Section 119 (3) says; for the purpose of subsection (2), all institutions and agencies of the State and Government at every level are accountable to Parliament.
I am bringing this in line with Section 106 sub-section (2c) which talks of the use of positions by or any information by Deputy Ministers, Vice Presidents and Ministers on any information entrusted to them to enrich themselves or improperly benefit or any other reason. We have observed that in the country there has been serious abuse of state funds and nothing has come to Parliament. Parliament has not reacted to the dishing out of land in terms of this Section –[HON. MEMBERS:
THE ACTING SPEAKER: Order Hon. Members, we want to
hear the Member in silence please. This is your own man, your own Vice President and you are making noise.
HON. ENG. MUDZURI: There is nothing that has come to this Parliament in terms of what has happened to some Ministries who abuse funds. In terms of Standing Rules and Orders Section 63 which reads; “In addition to Standing Order No. 26, a Minister who is unable to attend the sittings of Parliament under Section 107 (2) of the
Constitution shall make an application for leave of absence in writing to the Speaker. A Minister who fails to attend Parliament without leave having been granted in terms of suborder (1) shall be in contempt of Parliament”.
Mr. Speaker, I am reading this as the duty of Parliament to ensure that Ministers, Deputy Ministers and Vice Presidents are accountable to this Parliament in that there is a section which talks of Ministers not responding to Committee reports. There is a section which talks of them responding within ten days. All these are a series of things that I am reporting to you that it is your duty to ensure that Ministers and Deputy Ministers respond to the Constitution and the Standing Rules and Orders which sometimes the Speaker says we have not read.
I have not seen a single day when a Minister has come to represent responds on Committee Reports. We have had so many Committee Reports put across and none of them have been responded to to date yet the Standing Rules and Orders demand that they come here within ten days after you have done it in writing. Can you rule what should happen when we have had two to three years without any response on any
Committee Reports and also the corruption that has been taking place?
THE ACTING SPEAKER: Order please. Hon. Mudzuri, I think last week if you recall, there was something from the Chief Secretary on the subject that you spoke about – the conduct of Ministers and Deputy Ministers; this is being attended to.
Secondly, it would be very unfair to say that Ministers are not responding to Committee Reports. Let us say some Ministers because some have been here and we have congratulated them as Parliament that they have come to respond. It is not all of them but the Office of the Speaker has written to the Chief Secretary to inform the Hon. Ministers that they should respond to all Committee Reports. It is all in order; it is being pursued.
HON. ENG. MUDZURI: I want to read this to you Mr. Speaker
–[HON. MEMBERS: Inaudible interjections]- Section …
THE ACTING SPEAKER: Order!
HON. ENG. MUDZURI: Mr. Speaker, Section 26:2. I want it in verbatim so that it is quoted properly. “A Vice President or Minister must, in all cases,” not some “provide a comprehensive response to matters raised in a report of a Select Committee, within 10 sitting days after having been notified of the report, failure of which will constitute contempt of Parliament.” For you Mr. Speaker to tell us that ‘some’, it is in all cases. So, I am saying it is not enough for the Speaker to say we have written to them. What we need is to say this Parliament must be more serious and do proper business as per the rules which demand us to
THE ACTING SPEAKER: Order! Hon. Mudzuri, there is no contradiction here. I appreciate your concerns and I am sure you are right to have those concerns, but this has been said before like I alluded to earlier on that the Speaker’s Office is handling that and has already communicated with the Chief Secretary. Some action is being taken.
*HON. ZWIZWAI: Thank you Mr. Speaker. My point of order is that, when you gave a ruling on the issue that was brought before you by Hon. Eng. Mudzuri, you said it does not concern all Ministers because some of them are responding but others have not responded within the 10 sitting days. They maybe two, three or five, the number does not matter but our Standing Orders state that if they do not respond within
10 sitting days after being notified of the report, they are in contempt of Parliament. Contempt of Parliament means it is a crime. So, we want to know Mr. Speaker which measures you are taking on those Ministers who are not attending these sittings and are belittling this House. Contempt of Parliament is similar to smoking in the National Assembly or whatever other activities that might be done in this House. We want to know what measures you are putting in place or taking as Parliament to ensure that these Ministers are brought to book.
*THE ACTING SPEAKER: Thank you Hon. Zwizwai. I will reiterate what I said – [HON. MEMBERS: Inaudible interjections] – Hon. Mutseyami, how can you raise a point of order when I am talking.
Order please, order! Hon. Zwizwai, this is the same issue that we are talking about. What I was expecting from you is that we expedite the process than for you to repeat what was already said. We have heard your point and we will ensure that this administration and the Office of the Chief Secretary will take the necessary measures. I thank you.
RATIFICATION OF A LOAN AGREEMENT BETWEEN THE
GOVERNMENT OF ZIMBABWE AND OPEC FUND FOR THE
First Order read: Adjourned debate on the motion on loan agreement between the Government of Zimbabwe and OPEC Fund Question again proposed.
HON. MATUKE: I move that the debate do now adjourn.
HON. KWARAMBA: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 26 October, 2016.
PRESIDENTIAL SPEECH: DEBATE ON ADDRESS
Second Order read: Adjourned debate on motion in reply to the
Question again proposed.
HON. CHIRISA: Mr. Speaker, the President touched on a number of issues, but I want to say it is nothing to write home about as there was nothing new, hence you find that it is very difficult for people to want to stand and debate this speech.
He touched also on the alignment of laws with the Constitution. However, Mr. Speaker Sir, by now the realignment of laws could have been done if we were serious as a House and it seems there is no political will. We feel the Executive is benefiting from existing laws in the current form at the expense of the constituents, especially women and children who are always affected by situations. There are more than 400 laws to be realigned, I think we have only done 100 or so. We are looking at our period in this House and we will be asked what we would have done by the end of our term.
The President also touched on the growing incidents of drought in
Zimbabwe, but he did not highlight what the Executive, through the Government, is doing in terms of mitigating the situation. We expected the President to give disaggregated statistics of how many millions of people are suffering from the El Nino induced drought. The number of women and number of children, the disabled men who have been affected by the current drought and also the areas that are severely affected, but this was not done in that speech.
While the international community has been providing humanitarian aid, Mr. Speaker Sir, it is not everyone who is affected that is benefiting and the food has been distributed along political lines. This is unacceptable. We are all Zimbabweans and everybody has to benefit in times of need and I think this, from the President, should have been clear to tell his subjects what to do in terms of distributing relief food.
The discrimination will tarnish the image of our country and the Government might shoot itself in the foot as this will then force humanitarian aid organisations to close all avenues of aid due to the discriminatory distribution of food. Even the Food for Work
Programme is very selective. It is only benefiting the communities that are aligned to certain ruling parties. Chiefs and headmen who are supposed to be protecting their subjects are the major culprits in leaving out some of the people in their areas who are also in severe need of the food.
Mr. Speaker Sir, the issue of denying people food because of their political affiliation is not acceptable and the relevant Ministries should look into this issue because this is not the first time that this has been said. People have been complaining that food is being distributed along party lines and we would want to see the Ministries involved making sure that everybody receives food. Here, I am talking of the Ministry of Public Service, Labour and Social Services, which is the parent Ministry of this particular programme, the Ministry of Women’s Affairs, Gender and Community Development, to make sure the women in need also receive food and also the Ministry of Health and Child Welfare to look into the issue of children, especially now that there is a lot of feeding programmes happening in schools, to make sure that every school gets this programme regardless of area and of political affiliation.
Mr. Speaker Sir, the President in his official opening, talked about the Bills to be tabled in Parliament in this Session and about ratifying some of the protocols, among them the Paris Agreement and the Nagoya Protocol that Hon. Minister Muchinguri presented here. However, this is a long process and it might take long. What is needed at the moment is to source for more food aid to make sure every Zimbabwean is not left out as everybody is suffering.
On the economy which is facing a lot of challenges, we really expected a detailed analysis of the performance of the economy, the possible solutions to the challenges and to talk about the bond notes in detail, to make sure people are not having doubts, to make sure people are satisfied and to ensure people are educated or understand better the issue of bond notes and remove fear of the unknown from the people, but the President’s speech did not do that, instead it highlighted what we always hear about and what we already know.
The report talks of the implementation of the ZIM ASSET, but does not give details on what has been achieved in the sectors in the different Ministries. In Zimbabwe, we know there is the issue of ease of doing business reforms which have been the talk of town and which also does not elaborate on what the Government is doing except to say a new Act will be tabled in Parliament. Knowing our Executive, Mr. Speaker Sir, this may be even tabled in the last Session of the Eighth Parliament because in the Ministers’ vocabulary, there are no such words as speed up things and this is a concept they do not use in the Executive.
The one-stop-shop which the President highlighted has been on the cards for a long time and it seems the Ministers do not have respect for the Presidential Speech and for the implementation of highlighted issues. What pains us most, especially us as women, is that the delays in implementing planned programmes and projects affect the ordinary women, children and differently abled and other vulnerable people. As a Government, these vulnerable groups should be the first priority in any given programme.
Mr. Speaker Sir, I also want to highlight issues where women are concerned. Women are a group of invisible actors in the economy but they are not taken seriously. The President did not mention women in his minus plus four pages and yet women work more than men and are paid less. The informal slogan of our decade of women is that women do two thirds of the world work, receive 10% of the world income and own 1 % of means of production – [HON. MEMBERS: Inaudible
THE ACTING SPEAKER: Order! I can allow the Hon. Member
to refer to her notes and not to read her speech. You may proceed.
HON. CHIRISA: I am referring Mr. Speaker Sir. Women farmers in Zimbabwe are not recognised fully yet they shoulder more and more of the burden of providing food in many parts of this country as they plant, plough, fish, gather firewood and make sure the families are well off but they are not recognised Mr. Speaker Sir.
I just want to remind the Government that we are part of the global village and have signed a lot of international and regional protocols promoting women’s rights hence there is need to take the situation of women seriously especially that of the rural women whose situation need to be improved to ensure food security and reduce the number of undernourished people especially children.
Although the women are the main actors in feeding the nation, they also fight hunger and malnutrition but they have very little or no access to land. They have no access to resources and lack control of those resources. They are not given credit facilities, they are not trained and there is a lot of new technology but women farmers are not part of the new technology in terms of farming. Very little attention is paid to alleviating women’s plight in the rural areas.
Without secure land rights, women are often denied access to credit or benefits of membership in cooperatives, farmers’ associations as well as ownership clubs are mostly given to male…
HON. HOLDER: On a point of order. The Hon. Member on the
floor has not been referring to her notes but reading – I do not know who did the speech for her, maybe one NGO. If she could refer to her notes, it will be better for us.
THE ACTING SPEAKER: Hon. Member you may resume your
debate but I have already warned you not to read your notes. You may refer to your notes.
HON. CHIRISA: Ndazvinzwa Mr. Speaker Sir, but there are
issues that I want to stress especially on women farmers in the rural areas and sometimes I need to refer to my notes regularly. This is a women’s issue I am talking about and they should know because Holder is one of those who comes from a rural constituency. He must take cognisance of the fact women are being denied all these things especially in his constituency.
HON. HOLDER: On a point of order. Thank you Mr. Speaker Sir, the Hon. Member has referred to Holder instead of Hon. Holder.
THE ACTING SPEAKER: Please refer to him as Hon. Holder.
HON. CHIRISA: Let me just wind up and say, I hope the issues I have mentioned will form the basis for the Government to act and come up with programmes and projects to make sure that women’s farmers are supported. I thank you.
*HON. MATANGIRA: I want to add my voice on the speech that
was delivered by His Excellency, the President of the Republic of Zimbabwe, Cde R. G. Mugabe. No other better information will come than what he said in his speech where he called upon all of us
Zimbabweans to unite and come up with strategies that have the support of all of us for the development of our nation. He did not leave out the fact that right now we are experiencing a drought that has been caused by El Nino and not by political parties but sanctions which affect us such that we can no longer engage in farming.
The President of Zimbabwe is not the one who brings the rains but the hunger that is here is because of El Nino. What is pleasing is that he said that no one in Zimbabwe will die of hunger. I think we should give him a round of applause for this. Truthfully speaking Mr. Speaker Sir, I stayed in Binga, Hwange, Tsholotsho, Masvingo and Manicaland – there are no people who are not getting any food aid up to today. I want to say that the Hon. Member who was talking of food hand-outs being given along party lines – everyone is allowed to dream and that is not the case. What I want to say is that primary school children from where I come from and other areas are being given food supplements. The question that I want to pose to the Hon. Members in this House is that… Hon. Cross having passed the Chair without bowing was reminded
to do so.
…instead of just crying foul that the Government is not this and that, the President is not addressing these issues, we should ask ourselves what we as individuals are doing to help the people in our constituencies who voted for us. Are we also going to monitor the food that is being given to people in communities and schools to see if children are being fed. We need to go and monitor whether distribution is being done efficiently. The Hon. Member also said that whoever is distributing food is from a particular political party, when we are here in Parliament we are civil servants. We are not partisan. We are like the village heads. We are not different from the traditional leaders. The chiefs do not rule over a certain group of people belonging to one party only. What we are saying here is that we are not partisan and that is why the ruling party keeps progressing because we are not segregating. Hunger does not choose whether you are MDC or ZANU PF. There is no segregation that is taking place.
The President also said that even the Opposition that we have in this country is being ruled by President Mugabe because of democracy. The opposition should therefore accept that those who are distributing food are people who are appointed by God as village heads and chiefs – the traditional leaders.
Mr. Speaker Sir, if we consider in all countries that we know, the opposition began long back. God Himself and his angels was ruling both in heaven and on earth. Satan was also there and he wanted to make himself God - to take over the throne. That is where opposition began. Opposition will never see anything positive although it is positive. Even if things improve and development takes place, the opposition will never see any positive developments.
The Government of President Mugabe is leaving no stone unturned in sourcing for food to give to the people of Zimbabwe and not to ZANU PF people only. The Government does not segregate and what I have realised in this House is that, the opposition has realised that they do not have any room and opportunity.
HON. HOLDER: Thank you Madam Speaker. I forgot to
mention that I would like to thank you for putting a new carpet in this
House -[HON. MEMBERS: Inaudible interjections]- At least hon.
members can come now.
THE HON. DEPUTY SPEAKER: Order Hon. Members. Hon.
Holder, do you think we can disturb someone who is debating so that you can comment on the carpet?
HON. HOLDER: It was very important Madam Speaker to take
note of this.
THE HON. DEPUTY SPEAKER: Hon. Member please take
*HON. MATANGIRA: President Mugabe is saying in his speech,
let us join hands and work for the development of our nation. You are called upon to help develop the nation for the economy to recover. The economy of this country is based on agriculture and those who died in the liberation struggle died for the land and now that we have the land and the President is saying let us go and engage in command agriculture, let us go and farm to resuscitate our agriculture so that we resuscitate industries and also for our economy to start functioning. However, you will find that all those who are in the opposition, linked to where Satan was in heaven saying this is not right. The hon. MP who debated saying women have no collateral and the moment, that we start pointing fingers, and then you know that we are in trouble as we would be now siding with the Queen. Yes the Queen is a woman and we give her respect.
How can a woman not be given collateral? - [HON. MEMBERS:
THE HON. DEPUTY SPEAKER: Order, order. Hon. Members,
we want to hear what the Hon. Member is saying. You cannot continue heckling and heckling. What is wrong with you? He is debating and if you feel like debating, you stand and we give you the chance to debate.
I do not want to send someone outside.
*HON. MATANGIRA: When you are debating, we listen to you.
So, when we are debating, we also expect you to listen as well. Madam
Chair, what I am saying is - the President is saying, let us work together. The development and resuscitation of this economy will be done by you and me. What part have you played? ZIM ASSET says that we need to resuscitate our agriculture and that means we all have work to do. Command agriculture has come and both men and women should stand up to the challenge. We should go and work to ensure that our country has food security. Why should you continue seated and expect the President to come and give you food?
Madam Speaker, the issue is that we will never have another leader who is like the President Mugabe. The road network is being resurfaced while we are under the sanctions. Right now, we preparing for the coming agricultural season and we are ready for the command agriculture. We are being given inputs and everything is going on well. Those with irrigation equipment, their crops are about to mature now. We are happy and we pray that God gives us the spirit of discernment to understand that we might be black in colour but, we are one together with the whites. The white man will come and tell you that the person who is in power is not the right person. Where should the right person come from? We are saying that we need to sit down and have a round table and come up with strategies as to how we can resuscitate our economy. That is what the President’s speech was based on.
I will proceed saying that, what we have as we struggle in Zimbabwe is quite a lot. We have not heard of any reports of a person dying of hunger. People might say time is passing, yes but, President Mugabe is there and has done a good job, where will you get another leader him? Where will you get such a good leader who allows the opposition to say whatever they want? The President is saying, come let us unite and come up with strategies to develop our nation as
Zimbabwean people so that we work together, but they are saying that people are distributing food along party lines. There is nothing of that sort.
The other issue that the President mentioned was on the issue of corruption. He urged people to stop engaging in corrupt activities. Where would you get such a leader who denounces corruption in the councils and even amongst us or wherever? Even amongst us as MPs, there is corruption because your secretary in your constituency is your relative and that corruption.
President Mugabe said that we should stop corruption and even us as hon. members, we should stop engaging in corruption. The Bible says do not see the speck in someone else’s eye before you remove the log in yours. It is also good that President Mugabe denounced corruption. It is now up to us as hon. members to sit down and do the right thing. We pray to God to bless us with rain, then we will engage in agriculture. I equate the opposition to Satan because Satan tempts the Christians. So, I am appealing to the opposition to give us less temptations and let President Mugabe do his work.
*HON. ZWIZWAI: On a point of order Madam Speaker. My point of order is that, the Hon. Member who was speaking said that the Opposition in Zimbabwe is similar to Satan. I do not know the size of the paper he is using to smoke some substance, because he is drunk. We do not view these as good words. The Satan we know does not comb his hair, is a scary human being, smokes toxic drugs and is quarrelsome. I therefore request that the Hon. Member withdraws his statement that we are similar to Satan. Satan was seen walking in Norton.
HON. MATANGIRA: Thank you Madam Speaker. I did not say those words but they are being placed into my mouth. I said – [HON. MEMBERS: Inaudible interjections.] - let me speak in English maybe they will be able to understand. Can I speak in vernacular? I said, in heaven, where God resides, before creation, God was ruling in the company of angels. However, another angel called Lucifer desired to be like God, that is when opposition started in heaven – [HON.
MEMBERS: Inaudible interjections.] –
THE HON. DEPUTY SPEAKER: Can we have order in the
House. Hon. Members on my right, order.
*HON. ZWIZWAI: Thank you Madam Speaker. We take the
issue of being belittled and labelled, that the opposition is similar to
Satan with the condemnation it deserves. What I am requesting you
Madam Speaker is that the Hon. Member’s speech has been recorded. What he just said now is not the same as what he said earlier on. We still stand by our point of order and we do not allow the Hon. Member to abuse his privileges here by scolding us. If the recording of this debate is published, we ask that he be charged with contempt of Parliament.
THE HON. DEPUTY SPEAKER: Order Hon. Members, you
asked for a point of order and I asked the Hon. Member to explain what he said. Before I gave a ruling, you stood up for another point of order. You did not give the Chair the chance to give a ruling, of which I think it is not appropriate.
HON. MATUKE: Madam Speaker, I move that the debate do now adjourn.
HON. NDUNA: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 26th October, 2016.
RESTORATION OF THE MOTION ON THE FIRST REPORT OF
THE PORTFOLIO COMMITTEE ON SMALL AND MEDIUM
ENTERPRISES AND COOPERATIVE DEVELOPMENT ON
OPERATIONAL ENVIRONMENT IN ZIMBABWE ON THE ORDER
HON. MANGAMI: I move that the motion on the First Report of the Portfolio Committee on Small and Medium Enterprises and
Cooperative Development on the Operational Environment and Economic Contributions of Small and Medium Enterprises and the informal sector in Zimbabwe which was superseded by the end of the Third Session of the Eighth Parliament be restored on the Order Paper in terms of Standing Order No. 73.
HON. KWARAMBA: I second.
Motion put and agreed to.
Before the Fourth Order of the Day was read, Hon. Wadyajena was asked to approach the Chair.-[HON. MEMBERS: Inaudible
THE HON. DEPUTY SPEAKER: Order! -[HON. MEMBERS:
Toda report iyoyo. Tiri kuida. Tirikuda kui debator. Takapedza semamembers ecommittee iyoyo. Wadyajena usaende gara pasi.
Hazviite. Report iyoyo yakatomirirwa na President na Vice President.]- – Order, order please. Can we have order in the House? Hon. Members, you have been calling for the report of Hon. Wadyajena –[HON.
MEMBERS: Yes!]- There are some corrections which we ….. –[HON.
MEMBERS: Aaah! Takapedza kudhara nereport iyoyo.
HON. TOFFA: On a point of order, that report was collected last week. They stopped it last week and they cannot stop it this week, no!
HON. SITHOLE: Mirai nditaure ndini seconder.
THE HON. DEPUTY SPEAKER: Are you refusing me the right to explain what is taking place. Hon. Members, the Hon. Member is going to present his report tomorrow –[HON. MEMBERS: No, no, no!]. -[HON. ZWIZWAI: Inokorekitwa nani pasina Committee iri kusitter tomorrow. Nobody has the right to temper with our report]-[AN HON.
MEMBER: Chokuda haafanirwe kupinda mupolitics uyu.] – [HON.
ZWIZWAI: Toda report izvozvi. Musade kudzvanyirira mwana.
Mangwana zvinofuma zvonzi Wadyajena aurawa.] –
Hon. Zwizwai, please take your seat. We have procedures that we follow in this House. We have procedures and so we have to follow procedures.-[HON. ZWIZWAI: Procedure ndeyekuti kana tapedza seCommittee tapedza.] –
HON. NDEBELE: On a point of order Madam Speaker, in terms of Section 68 (d) of our Standing Rules and Orders, I am allowed as a member of this House to stand up and say what I feel like. I think you are clearly in contempt of parliamentary procedure and we are not ready to accept you turning this into a ZANU PF meeting –[HON.
MEMBERS: Hear, hear]- -[AN HON MEMBER: Tipei report.
Irikubuda nhasi. We want to hear that report.]-
*HON. CHINOTIMBA: On a point of order Madam Speaker. My point of order is that the President and the ruling party are not corrupt people and neither do they promote corruption. We realise that in other countries like South Africa, people like Zuma are having to account for the corrupt activities they did. We as ZANU PF or you as the Chair are not supposed to protect a person engaged in corruption from being brought to book –[HON. MEMBERS: Hear, hear!]. A person should face the consequences of his actions - [HON. MEMBERS: Inaudible interjections] - Madam Speaker, I am not through with my point of order. The men and women who fought in the liberation struggle did not go to war so that one person could benefit.
What we want in this august House as Hon. Members, …
*THE HON. DEPUTY SPEAKER: Order Hon. Members. Hon.
Chinotimba is speaking well but if you are making noise, how do we hear him.
*HON. CHINOTIMBA: Let me finish off. I want to finish off Madam. We asked the Leader of the House on what the policy says concerning corruption and he said that no one is above the law. So, if no one is above the law, then let those corrupt people be brought to book and speak for themselves. What we do not want when we leave this august House is to be accused of protecting our people. We do not want to hear that we are protecting corrupt people. If I am the one who has engaged in corrupt activities, if Chinotimba has been corrupt, then let the nation know that Chinotimba is corrupt. Even the army also noted yesterday that corruption is now a cancer and we want those people engaged in corruption to be brought to book. Thank you.
*THE HON. DEPUTY SPEAKER: Hon. Chinotimba, I hear what you have said. Hon. Members, your noise has become too loud and full of excitement. I want to give a ruling on what was said by Hon. Chinotimba. No one is being protected. If reports have been submitted to the Speaker, he corrects them. It might be the language – [HON.
MEMBERS: Inaudible interjections] – I have given Hon. Wadyajena the permission to present his report now.
HON. P.D. SIBANDA: I have got a point of order.
THE HON. DEPUTY SPEAKER: Can we please minimise the
points of orders so that we can go to the report. What is the point of order now because you have been complaining about the presentation of the report?
HON. P.D. SIBANDA: True Madam Speaker. We cannot entirely say because you have made a ruling then we should proceed. I believe that whatever was taking place between your Chair and the Chair of the administration needs a special Committee of Parliament to investigate. We believe that there is something – [HON. MEMBERS: Inaudible interjections] – Hon. Speaker, as I finish my point of order, we believe that there is something scandalous that was taking place between your Chair and the Chair of the Clerk of Parliament – [HON. MEMBERS:
Yes!] – Whatever was taking place was attempting to subvert the role of
Parliament as is provided by Section 119 of the Constitution. As a result Hon Speaker, I request that you make a ruling that a special committee of Parliament be established to investigate whatever was taking place and corrective action be taken so that such issues cannot be allowed to take place again in the future. Thank you.
THE HON. DEPUTY SPEAKER: Hon. Member, there is no
need for an investigation because I was not here from the beginning. Mr. Clerk was advising me on what took place while I was away. So there is nothing scandalous here.
FIRST REPORT OF THE PORTFOLIO COMMITTEE ON YOUTH,
INDIGENISATION AND ECONOMIC EMPOWERMENT ON
MARANGE-ZIMUNYA COMMUNITY SHARE OWNERSHIP
HON. WADYAJENA: I move the motion standing in my name
that this House takes note of the First Report of the Portfolio Committee on Youth, Indigenisation and Economic Empowerment on Marange-
Zimunya Community Share Ownership Trust .
HON. SITHOLE: I second.
The Constitution of Zimbabwe states explicitly that; S3(2)(f) The principles of good governance, which bind the State and all institutions and agencies of Government at every level include - respect for the people of Zimbabwe, from whom the authority to govern is derived. This constitutes an important obligation to all citizens to not only make good on promises of development and prosperity, but to offer leadership that is defined by transparency, integrity and accountability. Our leadership, ultimately, is in service of the people; s3(2)(g) Transparency, justice, accountability and responsiveness.
In as much as the politicians and public representatives of the day are expected to provide solutions to the most pertinent challenges faced by the people they represent, they must, with equal fervor, admit when they have failed. This humility will allow us as a nation to not only learn and grow from our mistakes, but will ensure that the electorate is certain of the sincerity and good faith of its leadership.
The promises that the Government makes to citizens of Zimbabwe, as well as the confidence the citizens hold in the Government cannot be taken for granted and must be honoured and safeguarded, always. While this inquiry brings to light damning evidence of misrepresentation and impropriety by some public officials to the people of Zimbabwe in general and the communities of Marange-Zimunya in particular, it offers an opportunity to fully hold to account those responsible for the deliberate deception to H.E Cde. R.G. Mugabe and the communities that agreed to erstwhile sacrifices in the name of the nation's progress. To leave one's home, making way for development, even on the promise of a better life is neither a light feat nor an easy task. We as Zimbabweans know only too well how intrinsically bound we are to the land of our ancestors and know the spiritual symbolism of home. We must know, then, that when we beg such sacrifices from our citizens, we are morally obliged to honour all of the guarantees we make to them. It then becomes not only folly but disingenuous and treacherous for politicians and public servants alike to prejudice the good people of this nation of any entitlements for personal benefit on account of the temporary position of borrowed power they exercise.
The Committee hopes that this report provides adequate basis for redress of wrongs committed against the communities of MarangeZimunya and further hopes that the Government of Zimbabwe will take the requisite actions to restore the confidence of the people of this community and the nation at large.
1.1 Zimbabwe’s Indigenisation and Economic Empowerment Programme is an endeavour by the Government of Zimbabwe to economically empower the previously disadvantaged and economically deprived majority of indigenous Zimbabweans, by guaranteeing them ownership and control of the country’s natural resources and the national economy. Zimbabwe’s Indigenisation and Economic Empowerment Regulations establish various mechanisms for delivering this broadbased empowerment, including the Community Share Ownership Trusts (CSOTs). CSOTs are established in terms of Section 14B of the 2010
Indigenisation and Economic Empowerment Act [Chapter 14:33] as read with the Indigenisation and Economic Empowerment General
Regulations of 2010 to provide surrounding communities whose natural resources are being explored by any ‘qualifying business’ a guaranteed shareholding in businesses that are active in their area.
CSOTs are constituted by a Deed of Trust presided over by trustees comprising Chiefs, Local Government Authority representatives and representatives from interest groups within the community. The key objective of CSOTs is to facilitate development and stimulate growth of the local economy while adding value to the wider national economy. To date, a total of 61 CSOTs have been duly registered with the Deeds Office. Of these, 60 are located in rural Zimbabwe, with one being situated in the urban area of Mabvuku -Tafara.
There has been wide-spread concern around the perceived general failure, maladministration and abuse of the country's 61 established
CSOTs, including the Marange-Zimunya Community Share Ownership Trust (M-Z CSOT). These concerns arose against a backdrop of various unfulfilled commitments by qualifying businesses to provide capital that facilitates administrative and local development activities as pledged.
Specifically, misgivings around the efficacy of the M-Z CSOT emanate from reports that despite the extensive mining of diamonds in the area, which is believed to be among those with the highest probable reserves globally, the local communities have not benefitted in any meaningful way. In particular, reports from community interest groups and the media alleged that the communities continue to languish in poverty and underdevelopment, unable to access the most basic services, including healthcare, schools and clean water. This was suggested to be, in part, as a result of six diamond mining companies not honouring a number of key commitments made to the communities, including a $50 million contribution towards the MZ CSOT, the provision of $1,000 in compensation to families relocated from Chiadzwa mining field and derisory land allocated to resettled families.
1.2 In accordance with its mandate to examine the administration and policies of the Ministry of Youth, Indigenisation and Economic Empowerment, and matters falling under its jurisdiction, the Committee embarked on an enquiry to establish the extent of these claims. To this end, in launching its investigations the Committee set out to achieve the following objectives:
- i) To determine the nature of the commitments made by Anjin
Investments, Diamond Mining Company, Mbada Diamonds, Marange Resources, Jinan Investment Private Limited and Rera Diamonds to the Marange-Zimunya Community Share Ownership Trust; ii) To understand the obligations, if any, binding Anjin Investments,
Diamond Mining Company, Mbada Diamonds, Marange Resources,
Jinan Investment Private Limited and Rera Diamonds to the Marange-Zimunya Community Share Ownership Trust; iii) To analyse the causes of the failure of the implementation and operationalisation of the Marange-Zimunya Community Share Ownership Trust; and iv) To ascertain the nature and extent of the challenges faced by families relocated from the Chiadzwa mining fields.
This Committee Report is a culmination of observations emanating from the investigation. It presents:
- Background information on indigenisation and economic empowerment and the Zimbabwe Agenda for Sustainable Socio-
Economic Transformation (ZIMASSET);
- Outline of issues linked to the failure to effectively implement the relocation of displaced villagers in ARDA Transau by the diamond mining companies;
- Summary and outcomes of oral evidence gathered;
- Committee findings and;
2.1 A number of factors motivated the necessity for this inquiry. These included, firstly, the prominence of CSOTs in the national development agenda as identified in the Indigenisation and Economic
Empowerment Policy and the Zimbabwe Agenda for Sustainable Socio-
Economic Transformation. Failure to recognise the central role that CSOTs are intended to play in socio-economic prosperity, and consequent failure to efficiently implement and operationalise CSOTs by key stakeholders provided just cause for examination. Secondly, the lack of clarity of the exact nature and extent of commitments (as well as conflicting claims of the same) made by relevant mining companies and other stakeholders towards the M-Z CSOT provided grounds for concern. Thirdly, disturbing reports of the bitter disappointment on the part of families relocated from the Chiadzwa mining fields around the non-remittance of their compensation funds, the inadequate size of the newly allocated plots and their inability to access basic services appeared to constitute unmet obligations on the part of the mining companies. Fourthly and finally, the proposed consolidation of all Zimbabwean diamond concessions and companies and the inheritance of all assets and liabilities of existing mining companies by Zimbabwe Consolidated Diamond Corporation brought to bear the question of what the exact obligations would be in respect to the M-Z CSOT. These issues gave basis for the pursuit of an investigation by means of oral and written submissions of evidence by related stakeholders as well as fact-finding missions to relevant localities.
2.2 Policy Framework
The Indigenisation and Economic Empowerment Policy informs and guides the coordination of the national indigenisation and economic empowerment agenda primarily through the implementation of the Indigenisation and Economic Empowerment Act [Chapter 14:33] as read with Indigenisation and Economic Empowerment regulations of 2010. The policy, if well implemented, facilitates the institution of measures to ensure participation in the economy by a broad spectrum of the indigenous Zimbabwean population. Thus, the policy drives a noble cause of economically empowering indigenous people who were historically disadvantaged before and after our independence in 1980. The Act seeks to bestow majority ownership and control of the country’s resources to the black majority. More specifically, the Act advises that at least: “51 per centum of the shares of every public company and any other business shall be owned by indigenous Zimbabweans”. The Indigenisation and Economic Empowerment Act also provides for the creation of an Empowerment Fund to finance the acquisition of working capital, shares, and other forms of finance for indigenous people.
2.3 ZIMASSET and Community Development
The Zimbabwe Agenda for Sustainable Socio-Economic
Transformation not only complements the Indigenisation and Economic Empowerment Policy in its goal to revive the economy, but maintains indigenisation and empowerment as its core thrust. The foreword of the blueprint, penned by His Excellency, President Robert Mugabe, reads, “ZIM-ASSET was crafted to achieve sustainable development and social equity anchored on indigenisation, empowerment and employment creation which will be largely propelled by the judicious exploitation of the country’s abundant human and natural resources.” Additionally, the Cluster on Social Services and Poverty Reduction directly refers to the establishment of CSOTs as a key deliverable for improved economic empowerment and indigenisation. CSOTs, therefore, act as vital vehicles through which some of the ends of ZIM- ASSET are to be met.
The M-Z CSOT was officially launched on 25 July, 2012 by
President Mugabe. It is at this launch that the five companies operating in the area, namely, Anjin Investments, Diamond Mining Company,
Mbada Diamonds, Marange Resources and Jinan Investment Private
Limited, allegedly pledged to contribute US$10 million each to the Trust. To date, the diamond mining companies have remitted a combined total of just $400 000 out of $50 million in pledges. It is against this background that the failure by diamond mining companies to honour their alleged $50 million pledge towards the M-Z CSOT scheme is widely viewed as having stalled development programmes in the community.
2.4 Unclear Expectations
Among the factors driving this enquiry was the appearance of a lack of clarity and consistency across the five mining companies of the role they were to play in the M-Z CSOT. Anjin Investments, for instance, had previously expressed that it was not aware of the MarangeZimunya Community Share Ownership Trust (CSOT) and that it had not made any pledges towards its implementation. This was contrary to the assertions of the former Youth Development, Indigenisation and Empowerment Minister, Honourable Saviour Kasukuwere, who accused the mining companies of dishonesty. Reports of the diamond companies’ failure to pay $10 million towards the pledged $50 million target for Marange-Zimunya Community Trust, therefore, could not be understood, given reports and speculation that the companies were enjoying significant profits.
2.5 Relocated Community Members
The Committee was concerned with the relocation of the displaced villagers by the mining companies. Villagers were allocated land in ARDA-Transau but complained of being allocated one hectare plots, which were insufficient in meeting their needs. It was also reported that their compensation of $1,000 per family has not been remitted (this was still the case as of March 2016.)
2.6 Consolidation of Diamond Concerns
The Zimbabwe Consolidated Diamond Corporation (ZCDC) seeks to amalgamate all diamond concessions in the country. ZCDC will inherit both the assets and liabilities of the diamond mining companies, including the pledges towards share ownership trusts. Minister of Mines and Mining Development, Honourable Walter Chidhakwa has stated that the new diamond firm will honour the $50 million pledge to the Marange-Zimunya Community Share Ownership Trust “The successor company will inherit both assets and liabilities of the merging companies…What this means is that companies in Marange, as is the case, took a position on the community share ownership trust…The new company will take over that responsibility and will, therefore, have to fulfill that pledge.” As such the exact nature of this commitment must be established and clarified for the benefit of the communities and the
In undertaking this enquiry, the Committee adopted the following methodology:
3.1 Oral Evidence Sessions
The Committee held oral evidence sessions with the following key stakeholders:-
- The board of Trustees of the Marange-Zimunya Community Share
Ownership Trust on 13 and 27 February, 2014;
- The Diamond Mining Companies (i) Anjin Investments (ii)
Diamond Mining Company (iii) Mbada Diamond (iv) Marange
Resources and (v) Jinan Investment Private Limited on 07 March,
- Honourable Christopher Mushowe, then Minister of State for
Provincial Affairs, Manicaland Province on 10 April, 2014;
- Honourable Francis Nhema, then Minister of Youth, Indigenisation and Economic Empowerment on 03 April, 2014 and 26 June, 2014;
- Honourable Walter Chidhakwa, the Minister of Mines and Mining
Development on 12 March, 2015;
- Masunga, Acting Permanent Secretary for Youth,
Indigenisation and Economic Empowerment on 07 May, 2015;
- Chizhou, then Acting General Manager of Zimbabwe Mining
Development Corporation (ZMDC) and the Acting Permanent
Secretary for Mines and Mining Development on 7 May, 2015;
- Honourable Saviour Kasukuwere, then Minister of Youth,
Indigenisation and Economic Development on 9 July, 2015;
- Honourable Obert Mpofu, then Minister of Mines and Mining
Development on 30 July, 2015;
- Zimbabwe Diamond Workers Union on 14 April, 2016 and;
- Jinan Investment Private Limited on 23 June, 2016
3.2 Written Submissions
The Committee received written submissions from the Board of Trustees of the Marange-Zimunya CSOT; Zimbabwe Diamond Workers
Union as well as from participants on the Public Hearings.
3.3 Fact-finding Visit
The Committee undertook a fact-finding mission to Chiadzwa and the ARDA-Transau resettlement area from 31 March to 01 April, 2016 which included:
- A meeting with the Provincial Administrator in Mutare;
- Visits to the Corporate Social Responsibility projects in Transau
Estate, including Welling Primary School and Charasika Primary
School built by Mbada Diamonds; Anjin Investments Water
Reticulation Plant for villagers relocated in Transau Estate; and
- Visits to Mbada Diamonds Corporate Social Responsibility projects, including St. Noah College and the Chiadzwa sub-chief homestead, both built by Mbada Diamonds;
3.4 Public Hearings
The Committee conducted public hearings and evidence gathering exercises at Chirasika Business Center (ARDA Transau), Zimunya Business Center on 01 April, 2016 and Bambazonke Business Center,
Marange 02 April, 2016.
4.0 ORAL SUBMISSIONS TO THE COMMITTEE 4.1 Marange-Zimunya CSOT Board
The Board of the Marange-Zimunya CSOT appeared before the
Committee twice, on 13 and 27 February, 2014. The Chairperson of the
Trust, Chief Marange, informed the Committee that in June 2013, the
Trust received USD 400,000 in their account. He further informed the Committee that the Trust was astonished about the amount deposited given that during the official M-Z CSOT launch, a cheque of USD 1.5 million was displayed. Chief Marange pointed out that they were surprised to receive USD 200,000 apiece from Marange Resources and Mbada Diamonds instead of the USD 50 million, USD 10 million apiece from the 5 major mining companies in the area.
4.1.2 The Trust Secretary Mr. Chinaka highlighted that the Trust was facing challenges in managing the public expectations as the mining companies were not remitting funds into the Trust. He indicated that the communities were expecting projects to the tune of USD 50 million but the Trust was working with the sum of USD 400,000. Meeting public’s expectation was an unattainable task, a point reinforced by Chief Marange who lamented that the rumour mill at the time was awash with stories that the Trustees were abusing the Trust funds. Chief Zimunya also questioned why the USD 1.5 million which was displayed at the launch amid pomp and ceremony had not been remitted to the Trust. He accused the mining companies of misleading and lying to the President on the amount of money to be released. Chief Zimunya further challenged the National Indigenisation and Economic Empowerment Board (NIEEB) to explain to the Trust and the Committee why the rest of the money had not been released.
4.1.3 Chief Zimunya informed the Committee that there was interference by the Provincial Leadership in the operations of the Trust and within the mining companies. He alleged that this interference by the political leadership could be the reason behind the failure by the Mining companies to fulfill their pledges. He emphasised interference by ZANU PF political leadership in the Province led by Mr. Didymus Mutasa, the then Head of Manicaland Province who has since been expelled from the ruling Party. He further alleged that there were cash donations and motor vehicles donated to individuals and not to the Trust which could have contributed to the companies not meeting their obligations. Chief Zimunya challenged the Committee to go on the ground and investigate why the funds had not been remitted into the
Trust account two years after the launch of the CSOT.
4.2 Marange Resources
4.2.1 On 7th March, 2014, Marange Resources made its presentation to the Portfolio Committee on Youth, Indigenisation and Economic Empowerment. The company informed the Committee that it fully complied with the Indigenisation and Economic Empowerment Act: that it was 100% Government owned; and 100% Zimbabwean in its management structure. The company reported that 92% of profits generated were spent in the local economy, and that only 8% was used to source raw materials that could not be sourced locally. In terms of employment, the company reported that 54% personnel were recruited from Marange-Zimunya area and 46% from other areas of the country;
90% of workers were said to be males while 10% were females; and that 75% of 589 workers were youths, in the age group of 40 years and below.
4.2.2 The Committee was informed that in its social corporate responsibility, a total of $22 million, between 2011 and 2013, had been disbursed of which 86% went to the relocation exercise, where out of a target of 350 houses, it built, 184 houses and relocated 116 households. Other areas of Social Corporate Responsibility include education, sport, and subsistence assistance including school feeding programmes for local schools, and distribution of food hampers and agricultural inputs to households, as well as construction of community projects which include Marange Vocational Center, Marange Hospital donations,
Murwira Children's Home, and Zororai Old People's Home. 4.2.3 The Committee was informed that the company's contributions to its Corporate Social Responsibility projects had been hampered by liquidity constraints in the economy; as a result the company was facing acute shortage of working capital and capacity constraints. Consequently, it was experiencing difficulty in contributing towards the $50 million for the M-Z CSOT. However, the company informed the Committee that it had made a contribution of $200 000 from the 2 million dollars it was supposed to contribute towards the Trust Fund. The company further alleged that from the onset, the pledges were prorated in line with the capacity of the company. Thus, Marange Resources would contribute 2 million and not 10 million. The Committee heard that there was no documentation on the pledges to be paid to the Marange-Zimunya Community Share Trust.
4.3 Diamond Mining Corporation (DMC)
4.3.1 On 07 March, 2014 Diamond Mining Corporation (DMC) made its presentation to the Committee. The Committee heard that the diamond mining company was summoned for a meeting at the Ministry of Mines chaired by the Permanent Secretary, Prof. Gudyanga, to discuss the CSOT. The discussion centred upon a collective contribution of USD 10 million which was needed as a capital investment by the trustees on a diamond mining project on behalf of the community. The company alleged that during the discussion it was understood that a concession area was already allocated to the community by Government and that capital investment was all that was needed. The company further alleged that of the USD 10 million to be paid, each company was to contribute USD 1.5 million dollars. The company informed the Committee that pursuant to the launch of M-Z CSOT, it expressed commitment to pay USD 1.5 million in small amounts. The company further mentioned that contrary to its pledge, it later learnt that USD 1.5 million was required immediately and as a lump sum, an undertaking that was not achievable for the company. The Committee learnt that the matter was brought up at several meetings held between the mining company and ZMDC wherein clarification was sought and correction was called for. The company alleged that ZMDC responded by saying that the matter was decided at a higher level and would be addressed in due course but was later advised by ZMDC not to make a contribution to the CSOT.
4.3.2 DMC further highlighted challenges of weak coordination between relevant authorities, trustees, and mining companies to see through the successful implementation of the Trust fund. It was the view of DMC that USD 1.5 million per company should be spread over smaller payments rather than being paid at once. The company reported that it had relocated 50 families, yet from the progress reports on relocation provided by the Provincial Administrator's Office, had only constructed 30 houses and relocated 30 households, out of a target of 114 households. The company also informed the Committee that it was involved in sinking boreholes, the supply of seeds, fertilizers, food packages and cash hand-outs, yet during public hearings, such schemes were said to have stopped as far back as 2012.
4.4 Anjin Investments
4.4.1 On 07 March, 2014 Anjin Investments made its presentation to the Portfolio Committee on Youth Indigenisation and Economic Empowerment. The Committee was informed that the company was compliant with the Indigenisation Act being a joint venture company between Afec and Matbronz on a 50:50 basis. On the payment of the pledged USD 1.5 million towards the Marange-Zimunya Community
Share Ownership, the company reported that it was advised by the then
Minister of Youth, Honourable Minister Kasukuwere that payment of the
USD 1.5 million was supposed to be paid over a period of five years, rather than a once off payment. The General Manger, Public Relations, Mr. M Machacha emphasised that Honourable Minister Kasukuwere knew there was no money to honour the dummy cheque but insisted on the President presenting the said dummy cheque.
The Committee heard that the company was not making its payments towards the Trust Fund, because when the pledge was made, the economic situation was 'good' and that the company was now facing cash-flow challenges and decreasing productivity and sales were declining. The company also informed the Committee that in spite of the decline in productivity and sales, it had built a total of 471 houses, primary and secondary schools, clinics and a shopping centre and water reticulation for the villagers’ relocation to ARDA-Transau at a cost of USD 80 million. Other Corporate Social Responsibility projects were said to include the provision of treatment to 800 relocatees suffering from eye cataracts and sending students to study in China.
4.5 Mbada Diamonds
4.5.1 The Committee was informed that since its inception, Mbada
Diamonds had exceeded the USD 1 billion mark in its turnover and that the bulk of the money was remitted to the national fiscus. The company stated that at one point Mbada Diamonds was contributing USD 15-20 million a week into the national fiscus. The Committee established that Mbada Diamonds had not pledged any contribution to the CSOT but stands ready to contribute to the fund to help improve the lives of people in the community. The Committee also noted that the USD 200, 000 dollar contribution Mbada Diamonds made to the CSOT was under its
Corporate Social Responsibility programme.
4.5.2 The Committee gathered that the Chairman of Mbada Diamonds, Dr Mhlanga, was one hundred percent certain that he never pledged anything to the Trust and that Mbada Diamonds was not represented at the launch. He also dismissed as malicious fabrication of the rumour that Mbada Diamonds gave Mr. M. Madiro cash or vehicles or any gift whether in kind or otherwise.
4.6 Honourable Francis Nhema, then Minister of Youth
Development, Indigenisation and Empowerment
4.6.1 Honourable Nhema, Minister of Youth Development,
Indigenisation and Empowerment, confirmed to the Committee that there was no written agreement and/or correspondence between the Ministry of Youth Development, Indigenisation and Empowerment, and the Companies on the USD 50 million dollar pledge. The Minister alleged that the pledge was made in a meeting, and no minutes of proceedings were produced. He pointed out that he had not seen any documentation from the companies to the Ministry and vice versa, he stated that no written agreement existed although he assumed there was a “gentleman’s agreement.”
4.6.2 Honourable Nhema pointed out that in any event, if he were to meet with the mining companies, the Ministry of Mines and Mining Development would be present because the companies fall under the jurisdiction of that Ministry. He expressed concern over the negotiations, noting that they were not holistic and did not involve all stakeholders. He pointed out that had all parties been present during the discussions, there would have been more transparency. Honourable Nhema informed the Committee that the Ministry had learnt that in all dealings and pledges, all interested parties must be represented so that work is done amicably by all parties and that everything be documented to enable
easy follow-ups. The former Minister further stated that the correspondence purported to have been signed by his predecessor, Hon. Minister S. Kasukuwere did not exist at his offices and even security had failed to track and locate it.
4.7 Honourable Christopher Mushowe, then Governor of Manicaland Province
The Committee was informed that on 20 August, 2012,
Honourable Mushowe received a letter from Hon. Minister Saviour Kasukuwere requesting him as Governor to make follow ups and ensure that the pledges made by the diamond mining companies were met for the benefit for the Marange-Zimunya Communities. The Committee established that Honourable Mushowe told some companies verbally that they should honour their pledges and that he wrote formally to Anjin reminding them to honour their pledge. He pointed out that he had written to Anjin only because Anjin was the only company that came to the launch and had presented the USD 1.5 million dummy cheque. He further pointed out that he made follow-ups via telephone reminding
Anjin to deposit the amount pledged to the CSOT.
4.8 Honourable Walter Chidhakwa, Minister of Mines and Mining Development
The Committee gathered that when the Minister of Mines and Mining Development, Honourable Minister Chidhakwa, had a meeting with the mining companies, they informed him that at the inception of the M-Z CSOT, there was no meeting held to discuss contributions to the CSOT. The Committee heard that the companies further alleged that no discussions were made on the amounts that would be deposited in accounts, the manner and the purpose of the CSOT and how it linked with the companies’ Corporate Social Responsibility. He informed the Committee that the companies had shown commitment that they were ready, willing and able to discuss with Government on the figures to be paid because the figures that were mentioned during the launch of the CSOT, were only mentioned but had never been agreed to. He further elaborated that the companies reiterated that a meeting was never held to discuss the sum that each company would pay into the CSOT.
4.9 Mr. Masanga, Acting Permanent Secretary Youth,
Indigenisation and Economic Empowerment.
The Acting Permanent Secretary informed the Committee that in terms of Clause 3 subsection 2 of Statutory Instrument 21 of 2010, the Minister of Youth, Indigenisation and Economic Empowerment, and the company that is exploiting the resources within various communities, have to agree to the value of share and other interests to be disposed to the CSOT taking into consideration the State’s sovereign ownership of the resources being exploited. In this vein, with regards to the MarangeZimunya Community Share Ownership Trust, he alleged the Minister responsible had met with the mining companies and pledges were made formally in spite of being unable to produce correspondence to that effect.
4.10 Mr. Chizhou Acting Permanent Secretary Mines and Mining Development and ZMDC Acting General Manager.
4.10.1 He informed the Committee that when the President launched the M-Z CSOT, there was a reported USD 50 million initial contribution by the 5 diamond mining companies in Chiadzwa. This meant that each entity was to contribute $10 million. He further pointed out that the launch was conducted solely by the Ministry of Youth, Indigenisation and Economic Development with the ZMDC only being invited to attend the event but that it was not involved in meetings prior to the launch or preparations to the launch.
4.10.2 The Committee learnt that the Ministry of Mines and Mining Development called upon ZMDC to ensure that the diamond mining companies deposit an initial amount of USD 200,000 to the M-Z CSOT bank account. The Committee was further informed that ZMDC called for a meeting wherein companies were urged to concur with the Ministry’s directive of making remittances to the Trust. In the meeting, it was noted that each diamond mining company was required to make a payment of USD 200,000 to the account with immediate effect. 4.10.3 The Committee determined that there was no correspondence from Hon. Minister Kasukuwere, the former Minister of Youth, to Hon. Minister Mpofu, the former Minister of Mines in relation to the M-Z CSOT. Mr. Masunga stated that the pledges were verbally made and that there wasn’t any correspondence or existing minutes to that effect. Mr. Masunga emphasised that the pledges were not in writing and they had consulted thoroughly within the Ministry of Youth and had gone through all the files but could not find any correspondence or minutes regarding the pledges.
4.11 Honourable Saviour Kasukuwere, then Minister for Youth
Development, Indigenisation and Empowerment
4.11.1 The Committee heard that the former Minister for Youth
Development, Indigenisation and Empowerment had engaged unnamed
"Zimbabwean Principals in the joint ventures" of the mining companies. He stressed that there was no need to sign agreements with the mining companies because Government had equal shareholding in them. He further alleged that since it was Government’s position that the alluvial resources must benefit the communities at the local level and as such, there was no need for a signed agreement with the mining entities. He argued that the discussions with regards to the empowerment of the people of Marange were handled at Cabinet and senior levels. The
Minister alleged that the Ministry of Defence was responsible for Anjin
Investments, for Marange Resources initially under Mr. Kurotwi, Director of Core Mining and Mineral Resources, and later by ZMDC which in turn was represented by the Ministry of Mines. He further alleged that the Principal for the other companies was ZMDC, a
Parastatal under the auspices of the Ministry of Mines. To this end, the Minister alleged that the people who had appeared before the Committee were not the ones he had entered into agreement with and he had never met them even at ministerial level.
4.11.2 The Committee heard, from Hon. Minister Kasukuwere, that a company owned by the people of Marange was set up and allocated a concession. The USD 50 million seed capital expected from the mining companies was to capacitate and capitalize this company to enable the community to mine and benefit from the resources. He pointed out that the companies might not have met their pledges because of lack of adequate funds. He further pointed out that Marange Resources had committed to paying a sum of USD 50 000 and that Mbada Diamonds had paid USD 400 000 into the M-Z CSOT when he was still with the
Ministry. This, however, has proven not to be a factual assertion as the
CSOT only received USD 400 000 from Mbada Diamonds and Marange Resources. He informed the Committee that he was not responsible for the dummy cheque that was displayed during the launch of the CSOT.
He explained that he did not work for BANC ABC and that he did not draw up the dummy cheque.
May I please request the video to be played for the benefit of Hon.
THE HON. DEPUTY SPEAKER: You can go ahead.
*HON. CHINOTIMBA: On a point of order Madam Speaker. I
agree with the Hon. Member on what is in his report. However on the issue of videos, I also had a video that I wanted to be put on record that sanctions were advocated for by certain individuals. On that day, the ruling from the Speaker was that no video could be played. So what I am saying is that, if this video is played, then mine which was denied should also be played.
THE HON. DEPUTY SPEAKER: Order Hon. Members. Can
we have order please? Hon. Chinotimba, does your video have anything to do with the report before the House? You are out of order.
A snippet of the video on the Launch of the Marange-Zimunya Community Share Ownership Trust by His Excellency the President was played.
4.11.3 The Minister reiterated that he did not discuss the pledge with Mr. Machacha whom he claimed was merely a Chairman of the company. He denied ever instructing Anjin to display the USD 1.5 million dummy cheque during the launch of the CSOT. He informed the Committee that since it was government policy, Mr. Machacha was instructed by the powers that be to bring the cheque, not by the Minister. He pointed out that Mr. Machacha was just an employee or somebody who had been asked to stand in for the stakeholders. The former Minister further pointed out that he had discussed the pledges with
Government, the shareholders.
4.11.4 The Committee was informed, by Hon. Minister Kasukuwere, that a position was taken by Government, the technical teams from NIEEB and the Ministry of Mines who discussed and agreed that although a percentile of Shares would be given to the community, and it was more beneficial for Government to capitalise the fund by having a seed capital of $10 million apiece. According to the Minister, it was a result of various discussions by Ministry officials that government reached an agreement on the amount to be paid with the Ministry of
Mines who were the major shareholders of the 50-50% joint ventures.
The Committee learnt that Hon. Minister Kasukuwere had not engaged General Mhlanga, CEO of Mbada Diamonds or even AFFEC shareholders who owned 50% of both Anjin Investments and Jinan mining entities. He pointed out that these entities were treated differently from the private companies because these were State linked entities. He emphasised that the understanding that $10 million apiece be availed to the CSOT was agreed to by all officials. He, however, refused to mention the names of the so called higher offices that he consulted or had given him directives to strike some working arrangement with the Ministry of Mines.
4.12 Honourable Obert Mpofu, then Minister of Mines and
4.12.1 The former Minister submitted that his then Ministry facilitated the actualisation of the indigenisation law but the implementation and administration fell under the purview of the
Ministry of Youth. He outlined that the Ministry of Mines and Mining Development was not involved in the engagement of diamond mining companies. He maintained that he had no recollection of any kind of correspondence from the former Minister of Youth, Hon. Minister Kasukuwere, it be on the pledges made by Diamond Mining companies or inviting him to the launch of the M-Z CSOT. He pointed out that, “This is a serious decision that would require proper documentation of that arrangement and you do not discuss such major transactions verbally. If there was such arrangement, they should have been some documentation to that effect and I am not aware of that documentation”. 4.12.2 He submitted that he did not remember entering into any agreement with ZMDC on making any pledges. He further denied the existence of any agreement, documentation or discussion arrangements on the USD 10 million pledges neither by the five diamond mining companies nor between the Ministry of Mines and Mining Development and ZMDC. He stated that he had no recollection whatsoever of any directive that was made from the Cabinet or from anywhere to his then Ministry regarding the USD 50 million pledges by the five mining companies in Chiadzwa. He further distanced himself from the activities of Hon. Minister Kasukuwere stating that he was never invited to participate at the launch of the Marange-Zimunya CSOT which was strange considering that mining firms fell under his ambit.
4.13 Jinan Mining Private Limited
4.13.1 MrGoronga, the Deputy Marketing Director of Jinan, informed the Committee that in accordance with the agreement of the joint venture between Marange Resources and AFFEC two percent of the joint venture company net profits shall be allocated for the funding of the CSOT. He pointed out that pursuant to this clause Jinan had not remitted anything to the CSOT because it has been making losses since it started operations on 5 October 2012. He elaborated that the year ending December 2013 a loss of USD 56.9 million was made and the subsequent year 2014, Jinan made a loss of USD 64.3 million. Mr. Goronga pointed out that pursuant to this, the 2% which was not on gross sales but net profit was not realised. He submitted that for the past two years excluding 2015, Jinan had not made a profit.
4.13.2 In response to the Committee’s enquiry on the USD 500 million which was siphoned from Jinan Mining Private Limited to BancABC Botswana, Mr. Goronga advised the Committee that the issue is under the Zimbabwe Republic Police, Serious Fraud Squad
Department. He further advised the Committee that the name Jinan Mining Private Limited was used by two different entities. He expounded that the monies which were coming in for investment in
Zimbabwe from AFFEC came through the account of "Jinan Mining
Private Limited" which is not the Jinan Mining Private Limited in Chiadzwa.
5.0 RELOCATION OF CHIADZWA VILLAGERS:
MANICALAND PROVINCIAL OFFICE SUBMISSION
5.1 During a courtesy call briefing with the Manicaland Provincial
Administrator, Mr. Mbetsi informed the Committee that the Local
Government, Rural and Urban Development circular No. 162 dated 18th November 1991 stated that, ‘“Any organisation which intends to implement a project that displaces people must take all the necessary measures to compensate all the people entitled to be compensated in respect of all the losses suffered including loss of land”. It was, therefore, the responsibility of the project sponsor to ensure that compensation is provided to the displaced families. The Committee gathered that when diamond mining began in Chiadzwa, Transau Estate was identified for the resettlement of the displaced families. The Committee was informed that the estate comprises 12 000 hectares, of which 500 hectares is occupied by the Grand Reef Aerodrome, leaving
11 500 hectares for the resettlement of displaced Chiadzwa villagers. The Committee heard that a committee was set up to oversee the relocation exercise process, under the Provincial Governor/Resident Minister. The resettlement committee comprised the Provincial
Administrator (Chair), Agritex Department, Irrigation Department,
Public Works Department, Ministry of Lands, District Development
Fund (DDF), Zimbabwe National Water Authority (ZINWA), Physical
Planning Department; Ministry of Education; and Ministry of Health and Child Care. The Committee was further informed that preliminary planning activities conducted included Chiadzwa household census, planning and demarcation of Transau, valuation of Chiadzwa households immovable property for compensation purpose, construction of core houses, blair toilets, roads, dip tanks, and drilling of new and maintenance of old boreholes. The resettlement was also to include establishment of social and commercial facilities and more importantly, irrigation scheme that would afford relocatees sustainable livelihoods since they would depend on food handout until the completion of the scheme.
5.1.2 The Chiadzwa Household Census to determine the actual number of affected families concluded that 31 villages with a total of 4 321 households, 11 564 cattle, 17 208 goats, 1 458 sheep and 362 donkeys would be affected by the mining activities. The Committee was informed that currently, 10 villages, with 1 800 households, had been identified for relocation on the villagized model A1 scheme, and that they will take up 4 500 hectares of the 11 500 hectares available. The homesteads constructed for relocates would consist of 3 bed roomed core house, a traditional kitchen, and a toilet, on a one hectare piece of land.
5.1.3 The remaining balance 5 000 hectares was set aside for grazing, 1 000 hectares for the development of socio-economic infrastructure, including clinics and shops, and the other 1 00 hectares is set for potential investors. Thus, a lot still needs to be done in terms of relocation of affected households. The Provincial Administrator's Office indicated that those that are yet to be relocated have been affected by pollution coming from mines. This was confirmed by villagers at Bambazonke Business Center, on 2 April 2016, where it was revealed that Diamond Mining Company (DMC) was spewing effluent into Chenyu and Singizi Rivers both of which are Save River tributaries, thereby exposing aquatic life, the surrounding villagers and livestock to contaminated water.
Table 1.0 Progress on Relocation Programme
|Company||Total No. Of houses to be constructed||Total No. Of houses constructed||Total No. Of households allocated housed|
5.1.4 On the Marange-Zimunya Community Share Ownership
Trust (CSOT), the Provincial Administrator's Office informed the Committee that the payment of the pledged USD50 million, where individual companies were supposed to pay USD 10 million each, and the USD 1.5 million that was presented as a dummy cheque when the President launched the trust in 2012, has remained elusive. Not a single company has fulfilled its pledge. As of March 2016 the following were the payments made by companies according to Provincial
Table. 2.0: Marange-Zimunya CSOT Income: March 31, 2016
|Marange Resources||$300 000|
|Mbada Diamonds||$200 000|
|Donation - CBZ||$500|
|Donation – Agribank||$520|
|Burumwe Sec Contributions||$ 3 620|
|Total Income||$542 732|
|Expenditure to date||$488 951|
|Cash at hand||$53 781|
5.1.5 The Committee was further informed that the Trust had implemented projects in all the 36 Council Wards with a minimum of value of USD 5 000 per ward. Projects implemented in the wards ranged from borehole drilling and rehabilitation, construction of classroom blocks, construction of bridges, grading of roads and purchase of school furniture. This was confirmed during public hearings at Zimunya Business Centre and Bambazonke Business Centre in Marange. The
Trust also financed three district projects Madanga Clinic (Mutare
South), Matiza Clinic (Mutare West), and grading of roads in Mutare North. The Committee was also told that the Trust had no secretariat of its own and that its administration was run by the Council Administration through the Finance Department while the Council Engineer is handling its project management.
6.0 PUBLIC HEARINGS AT CHIRASIKA BUSINESS
CENTER (ARDA TRANSAU)
6.1 On 01 April 2016, the Committee conducted a brief public hearing at Chirasika Business Centre, ARDA Transau. The Committee was informed that Chirasika Primary School was built by Mbada Diamonds. Teachers’ accommodation is inadequate. It was also mentioned that the school comprised of 7 classrooms only, hence some lessons take place in the open and/or in makeshift classrooms.
6.2 The Committee was also informed that some homesteads built were overcrowded and in some cases muroora (daughter-in-law) is compelled to share accommodation with her in-laws. The relocated villagers also complained of high water bills at $4 per month while they paid between USD 100-150 per household for irrigation plots. The Committee was informed of severe food insecurity in ARDA Transau because their half hectare allocated plots cannot produce enough food. The villagers confirmed that during the relocation exercise they were given USD 1000 disturbance allowances.
7.0 PUBLIC HEARING AT ZIMUNYA BUSINESS
7.1 On 1 April, 2016 the Committee conducted a public hearing at
Zimunya Business Center. The following were the major issues raised.
7.1.2 Villagers were concerned about the US$50 million allegedly pledged by the mining companies in the Chiadzwa area, and in particular the US$1.5 million that was displayed during the launch of the M-Z CSOT which was never remitted. They alleged that either the companies did not fulfill the pledge or it was paid but was then misappropriated and did not benefit local communities. Villagers, however, acknowledged receipt of the US$5 000 from the Trust which they used to do projects, such as refurbishing of a Community Hall at Zimunya Business Center.
They had hoped that money from the Trust would be handy to rehabilitate bridges destroyed by Elnino in 2000 at Nyahuni River. They were concerns that youths in the area were made to fill out forms so that they would benefit from the pledged US$10 million from each of the companies. No such funds were availed.
7.1.3 The Committee was also informed about the DMC mining activities which pollute rivers like Singwizi yet nothing was being done to protect villagers and their livestock from contaminated water. Most speakers, especially headmen expressed concern that diamond mining companies were not employing youths from Marange-Zimunya area because they were recruiting from Mashonaland provinces. Villagers weren’t amused about the location of diamond factory in Harare yet the mining was being carried out in Marange–Zimunya area, a move which denied their local youth job opportunities. A proposal was made by the villagers that diamond mining companies should have a policy of guaranteeing 60% of jobs for local youths in order to economically empower them.
8.0 PUBLIC HEARING AT BAMBAZONKE BUSINESS CENTRE, MARANGE
8.1 Marange–Zimunya Development Trust, represented by Mr. M Tafirenyika, and The B-Ment Youth Organization in Marange-Zimunya represented by Eng. Nemasase highlighted the following major concerns in the communities about diamond mining: (i) that the government and diamond mining companies should explain to local communities about what happened to the purported US$50 million pledge, and in particular the US$1.5 million displayed at the launch of the Trust by the President in 2012; (ii) the location of diamond polishing companies in Harare while avoiding Mutare and centres like Bambazonke Business Centre which marginalizes local communities who are denied employment opportunities; (iii) that it is disturbing for local communities to receive reports that alluvial diamonds were being exhausted before communities have experienced any tangible benefits such as construction of roads, schools, clinics, and the electrification projects; (iv) that there are local projects including the 1972 Bambazonke Irrigation Plan which could improve the livelihoods of locals had the Trust fund been channeled properly towards these projects; (iv) that mining activities by companies like DMC which are polluting Chenyu and Singwizi rivers, are not made accountable for their actions.
Communities accused government, in particular the Ministry of Mines and Mining Development, of making a deal with the mining companies which benefited a few people at the expense of the affected communities. They further accused Chief Marange and Headman Chiadzwa of individually benefiting at their own expense since the companies donated motor vehicles and built homesteads for these community leaders. This was reiterated by most villagers who claimed that Government and the mining companies benefited while the communities, save for a few aforementioned individuals were languishing in poverty. They demanded that a meaningful and transparent agreement amongst the key stakeholders i.e. Government, mining companies and community was needed to enable the community to claim what was due to them.
8.2 The Committee was informed that villagers were not happy that the name of the President was abused since he officiated at the launch of the M-Z CSOT and displayed a dummy cheque of US$1.5 million which has not been honoured. There was the general perception that, as expressed by Mrs. Mavhunaga, the non-payment of pledged funds by the companies has abused the name of the President. She demanded that the person who misled the President should be arrested; failure to arrest the person would imply that the President himself had unwittingly made a misrepresentation to the people
8.3 The ZCDC has refused to take responsibility over what transpired between locals and former diamond mining companies regarding relocation and related issues. The community was concerned with the settlement of the salary arrears that were incurred by the mining companies in view of the recent mining companies’ amalgamation. They were concerned about who would take the responsibility of settling the payments. They urged government to clarify this issue and to make arrangements that benefited the locals.
8.4 The Committee was informed of police brutality to local residents during their patrols around diamond mines. Mrs. Ziduche informed the Committee that her son Fungai Ziduche sustained serious injuries leading to the loss of his testicle after he was assaulted by police.
8.5 The local traditional leadership was not happy that there was no compensation by the diamond mining companies who had destroyed local shrines, including the sacred Baobab Tree that was used as the place for rain-making ceremonies by Chief Mkwada and Chiadzwa.
8.6 The villagers could not hide their shock about the revelations made by His Excellency the President, Cde. Robert Mugabe that around $15 billion of diamond money was unaccounted for. They argued that the President must have been made aware of what was happening at the diamond fields as every Wednesday a plane would come to pick up diamonds for resale.
9.0 COMMITTEE FINDINGS
9.1 Marange-Zimunya Community Share Ownership Trust
9.1.1 After being reassigned to a different ministry in September 2013, Hon. Minister Saviour Kasukuwere continued to demonstrate an unusually keen interest in his former Ministry, to the extent that he remained highly visible in the public media, commenting on issues related to the Marange-Zimunya CSOT well beyond his tenure. Additionally, when the Hon. Minister Saviour Kasukuwere finally appeared before Committee, his submission did not offer any clarity whatsoever as to the authenticity of the pledges by mining companies. Moreover, his appearance before the committee was characterized by a clear intention to obstruct the Committee’s investigations and on one occasion, he made overt threats directed at the Committee Chairperson, Hon. Justice Mayor Wadyajena.
9.1.2 The Committee is persuaded to conclude that the Diamond mining companies never at any point pledged the US$10m apiece and the nation was misled by Hon. Minister Saviour Kasukuwere. There remains neither a clear paper trail nor recorded minutes between officials from the diamond mining companies and the Ministry of Youth, Indigenisation and Economic Empowerment. The Permanent Secretary as the Accounting Officer of Ministry of Youth, Indigenization and
Economic Empowerment was never at any point involved by Hon.
Minister Saviour Kasukuwere. The absence of supporting documents of such a nationally significant transaction calls into question the official nature of the pledges, and lends credence to suspicious claims by both diamond mining companies and the community that the pledges were the singular creation of the former Minister, Hon. Saviour Kasukuwere. No due diligence was conducted in the development of the legal constitution of M-Z CSOT. In particular, that there are no proper written and or verbal contracts or agreements amongst the key stakeholders within the Ministry of Youth, Indigenisation and Economic Empowerment, the Ministry of Mines and Mining Development and diamond mining companies, reflecting the amount of money that each company should pay, the terms of payments and the reporting mechanisms. This has negatively affected the capitalization of the CSOT.
9.1.3 The Committee noted the concerns of the locals in their pursuit for redress of their grievances, that they anticipate will affect the community for generations to come. The Committee further noted the fear, rage, and pessimism of the Marange-Zimunya community around the perceived plundering of the diamonds themselves and the ensuing manipulation around the M-Z CSOT. The residents are bitter that despite being one of the most lucrative diamond fields in the world, five years after diamond mining began, their area has remained poor and underdeveloped and revenues from mineral resources have failed to lift poor people out of the shackles of poverty. The communities are crippled by degraded environments, disease, perceived and justifiably so corruption in the handling of CSOT funds, general poor service delivery and dilapidated infrastructure such as poor roads network, underrehabilitated bridges, under-equipped clinics with inadequate drug stock, and general food insecurity for the communities due to relocations from their plots, drought and general poverty. On account of non-payment of the USD 1.5 million that was displayed during the launch of the M-Z
CSOT, local residents’ hopes of benefiting from their local resources have been dashed, and led to speculation that Hon. Minister S.
Kasukuwere and the diamond mining companies misled the President, His Excellency, Cde. RG Mugabe and the nation at large. This has severely impacted negatively on the respect accorded to the President and the Chiefs in the area as reflected by the statements made by the Villagers. I want to take this opportunity to play to the House an audio on what the people of Marange-Zimunya are saying about the President and Zimbabweans.
Audio played to the House.
HON. WADYAJENA: Thank you Madam Speaker. I can see you
are now smiling.
9.2 Relocation of Chiadzwa Villagers
9.2.1 The Committee found that land at Arda - Transau is not sufficient to cater for the relocation of 31 villages with 4 321 households, yet there were no clear visible progress on the ground on the part of the Provincial Administrator's Office with regards to finding alternatively located land, except statements pronouncement that to finding alternative land was being searched outside Mutare district. 9.2.2 Five companies have not met their villagers’ relocation targets: Rera Diamond Company, which was supposed to relocate 92 households have not yet begun the exercise. Jinan Investments was supposed to relocate 350 households, has only constructed 110 houses and relocated only 31 households. Marange Resources was supposed to relocate 350, has only built 184 houses and relocated 116 households. Diamond Mining Company was supposed to relocate 114 households, has only built 30 houses and relocated 30 households. Mbada Diamonds was supposed to relocate 487 households, has constructed 100 houses and relocated 100 households. Only Anjin Investments met its target of relocating 474 households and constructed world class water works, clinic and schools for the community in addition to tarring roads. In Transau Estate, houses that have been built but not occupied and others that have not been completed are exposed to theft and vandalism.
9.2.7 The handling of exhumation and reburials of the dead of the displaced villagers remains a bone of contention between MarangeZimunya communities and diamond mining companies. While the Provincial Administrator's Office acknowledged that, nothing has been done to address this challenge.
9.2.8 There are cases of villagers, that have not been relocated being affected by mining effluent, especially in areas being mined by DMC and Jinan, and the Committee was informed by Provincial Administrator's Office that there are no formally instituted medical facilities and assistance given to the affected villagers.
9.2.9 That villagers are now supposed to pay between $100 and $150 for irrigation plots, something which is not affordable to most villagers.
10 COMMITTEE RECOMMENDATIONS
- The Committee recommends that as an absolute priority, The Ministry of Mines and Mining Development, through the new company Zimbabwe Consolidated Diamond Company (ZCDC) must expedite the relocations and compensation of displaced villagers. This process must commence within 45days after adoption of this report in Parliament and must be completed within an acceptable agreed timeframe.
- This timeframe must be established in consultation with the Board of the M-Z CSOT. Additionally, the Committee recommends that consultations are held in order that relocatees are accorded the chance to address concerns around the inadequacies of their new plots and associated services.
- A firm and written commitment by ZCDC with a clear payment plan of the $50m must be availed and agreed to with M-Z CSOT by 11 January 2017.
- That with immediate effect, any further recruitment by ZCDC must give priority to the employment of qualifying and trainable people from the local areas and adheres to standard labour practices.
- In order to establish a good rapport between ZCDC and the community, the company must respect the traditional leadership, norms, values and customs of the locals.
- Henceforth, the ZCDC should submit itself to public scrutiny in the manner of all state enterprises and parastatals to ensure it is managed with the highest levels of transparency and accountability. If this is to truly mark a departure from cloak and dagger management of the sector, then new ways of working and reporting must also be employed. With respect to community relations, it is recommended that the new company adhere to international standards of reporting around sustainability, such as GRI and ISO Standards.
- With the findings of this enquiry revealing clear deception bordering on criminal abuse of office, the Committee calls upon the Zimbabwe Republic Police, the Zimbabwe Anti-Corruption Commission, the Auditor General and all relevant authorities to institute formal proceedings within 14 days (from the day of adoption of this report) to investigate the conduct of Hon. Minister Saviour
Kasukuwere, officials from the Ministry of Youth, Indigenisation and
Economic Empowerment, National Indigenisation and Economic Empowerment Board as well as the diamond mining companies in relation to the M-Z CSOT.
- The Committee further recommends that the President, H.E Cde.
R.G Mugabe establishes a Commission of Inquiry led by a Judge or any other suitable candidate to investigate the intricate web of deceit, corruption and fraud related to the establishment and implementation of the M-Z CSOT. Further, that particular attention must be paid to a likely covert strategy meant to discredit and malign the Office of the
- The ZRP and responsible authorities must work towards concluding the investigation around the alleged externalization of USD $500 million by Jinan and possibly other mining companies.
The Commissioner General of Police must issue a statement by
November 30th, 2016 on progress.
- An amendment of the Indigenisation and Economic Empowerment
Act [14:33] as read with Indigenisation and Economic Empowerment General Regulations of 2010 and the Mines and Minerals Act to reflect the legal status of Community Share Ownership Trusts, as a matter of priority.
- In general terms, a greater culture of consultation across all stakeholder groups must be encouraged within the nations' diamond mining industry. Industry practitioners and experts, policy makers, affected communities, local and traditional leadership and the general public must be afforded opportunities to participate in and contribute towards the shaping of policy in this regard. The opacity and inadequate sharing of information only gives rise to lack of understanding, suspicion and mistrust of the industry and its custodians. Practical steps must be taken to establish platforms that allow for a two-directional exchange of information and opinion. This is crucial in establishing the buy-in on policy direction by the ultimate beneficiaries of the nation's natural resources. Madam Speaker, I thank you.
HON. SITHOLE: Thank you Madam Speaker for affording me
the opportunity to contribute to this very important debate. I also want to thank the Chairperson of the Portfolio Committee on Youth,
Indigenisation and Economic Empowerment for bringing to the
House one of the best reports in the history, not only of this Parliament but in the history of humanity.
To start with, it is very important for committees to be allowed to work independently; without interference from the Clerk or the secretariat as we were seeing before the start of the debate. I say this citing Section 119, which allows Parliament to oversee the activities of the Legislature. I also cite Section 139 of the National
Constitution which also allows the setting up of Standing Rules and
Orders. Standing Rules and Orders Number 159 and 160 actually permit committees of Parliament to do investigations and monitoring of any expenditure that is done using taxpayers money.
To start with, the Zimunya – Marange Community Share Ownership Trust, the Marange area is an area which is sandwiched between the Odzi river and the mighty Save river; you know Save is very important for our national politics. The revolutionary spirits of this country, most of them emanated from Save river and that is why today the spirit of Mbuya Nehanda is upon me.
Mr. Speaker, The Marange area has a population of around 5 200 people and 80% of the population are women. The relocation that was done mainly affected women. When we visited the area, we realised that the poverty levels are very high. There is a lot of kwashiorkor, despite the fact that Zimbabwe is a signatory to the
International Convention on Economic and Social Emancipation. The relocation of the people which was done before they could set up houses for the people was actually in contravention of the policy that we actually ratified here in Parliament in July, 2013 which is the Kampala Declaration. It talks about the protection and assistance of internally displaced people. It is my request Mr. Speaker Sir, that this
House takes into consideration …
HON. MUDARIKWA: I have a point of order Mr. Speaker Sir.
THE ACTING SPEAKER: What is your point of order Hon. Member?
HON. MUDARIKWA: My point of order is, the procedure is that when a report is being debated in the House of Parliament, there must be some reports in our pigeon holes. There are no reports in our pigeon holes, so how do we contribute to the debate. I have checked in my pigeon hole and there is no report. – [AN HON. MEMBER: kunongotaura mamembers eCommittee.] – No. The procedure is that as we debate here, it is automatic that they must be in the pigeon holes. What is there Mr. Speaker Sir, it is like a Committee meeting because it is only Committee members who have the report, the rest of the Hon. Members do not have that report. I checked in my pigeon hole, it is not there.
THE ACTING SPEAKER: Hon. Member Sithole, you may
proceed we are checking on that issue.
HON. SITHOLE: I was saying this House must try to make sure
that we have a specific law that deals with internally displaced people. Historically, if you look at the records, in July 2013, this House ratified the International Convention of Internally Displaced People, which deals with the protection and assistance of internally displaced people.
Going into the report, some of the findings from the report make everyone wonder. If you do not wonder, it means you are not paying enough attention. Specifically, the issues raised to do with Hon. Minister Kasukuwere when he visited the Portfolio Committee, he reminded me of the former World Boxing Champion, Mr Tyson who would challenge everyone for a fight. The conduct that he did is in contradiction of Section 159 read in conjunction with Section 160. It is upon this House Mr. Speaker Sir, to ensure that every Minister adheres to the laws. The Standing Rules are very clear that there are privileges to Parliament and every Minister and Deputy Minister must come to answer. Mr. Speaker Sir, to quote Hon. Jonathan Moyo, he said ‘every
Minister or every senior Government official must carry his cross’. We would not want a scenario whereby senior Government officials come to Committees for hearings and they start to threaten the Committees; it is actually unconstitutional.
The other issue that I would want to raise Mr. Speaker Sir, is the issue to deal with the consolidation of the mining companies which was done under the umbrella name of Zimbabwe Consolidated Mining Companies. I am going to dwell on this consolidation because the issue will centre on corporate governance which would also influence the Community Share Ownership Trust that is supposed to be given to the community of Marange-Zimunya since the present Minister, Hon. Walter Chidhakwa stated that all the outstanding liabilities which were left with Mbada Diamonds and other mining companies will be taken over by the new mining company.
Mr. Speaker Sir, I want to dwell much on this mining company, the way it is operating and the way it is constituted. We have so many worries when we learnt that on this new mining company which is being termed a consolidation - in my opinion it is not a consolidation, it is a nationalisation; it is more of a parastatal. I would actually want to see a scenario whereby the new mining company….
THE ACTING SPEAKER: Order, order, I am going to respond
to the issue of the non circulation of the report. I am told there are few copies that have been circulated and did not reach all Hon. Members. So they are printing some more. Tomorrow morning everybody will be having his or her own copy. You may proceed Hon. Member.
HON. SITHOLE: Thank you Mr. Speaker Sir. The nationalisation of the mining sector, the mining sector is a very important sector in our economy because right now the agricultural sector is being affected by both droughts and mismanagement but largely on the mismanagement part. The mining sector has to be handled carefully and if we try to nationalise the diamond mining sector, we have a huge risk. If you look at the case studies of institutions that have been nationalised like NRZ, Air Zimbabwe and Cold Storage Commission - the way they are performing, I would not want to think it is a good move for the Government to nationalise the mining sector because it is an area which we think is going to be a cash cow for us.
In terms of corporate governance, we hear there are serious divisions between the current Minister, Hon. Walter Chidhakwa and the Permanent Secretary Mr. Gudyanga to the effect that issues of nepotism are rising and as Parliament, we should investigate them. We actually hear that there is a certain lady who has now been employed at the consolidated mine by the name of Euphrazia Ndhlovu. Euphrazia Ndhlovu happens to be a daughter of the Minister, which actually reminds us of the case of Simbarashe the son in-law to the President who is also a senior official to Air Zimbabwe. These kinds of issues would actually raise a lot of dust regarding the issue of corporate governance.
In addition to that, there is a big fight and we should know this as Parliament, between the Permanent Secretary and the Minister regarding the appointment of the Chief Executive Officer (CEO). The board actually resolved that they want Engineer Murwisi – because as we are speaking, the current consolidated mining firm does not have an engineer, it only have metallurgists and it is very difficult for us to operate as a country when we have an important asset like that mining firm which does not have an engineer.
Mr. Speaker Sir, as we are speaking, there was no exploration which was done. It was just an issue of guessing how much carats you would get on this piece of land which is not the way to do it. We should have a scientific way of doing things, otherwise we end up having a scenario like what we did recently in March at Kariba where we were told by the very same Minister that there is a discovery of millions of deposits of gold at Gachegache only to be told that there was no exploration which was done. Even in the areas where they were starting to mine, they did not even have an environmental assessment certificate from EMA. So, those issues would actually give us problems. It actually reminds us of what happened previously regarding the issue of Rotina Mavhunga where the whole Ministers, including the former Minister
Hon. D. Mutasa who went to Chinhoyi after being told that diesel would come out of a rock. So, we need scientific ways of establishing and examining how much we can get from a specified piece of land.
The other issue that I would also want to raise regarding the issue of corporate governance is the issue to deal with how the Minister is engaging and operating at the consolidated mine. Recently, when the Minister went to Zhombe, we have reports that the Minister used the car for the CEO, a Mercedes Benz top of the range, GL formatic, no. plate
ADR 1148, which is actually unheard off. Under normal circumstances, Ministers are supposed to use ministerial vehicles which would actually be serviced by CMED and everything will be checked by CMED. But if you have a whole Minister who uses the CEOs car, then the issues of corporate governance are actually compromised.
The other issue that I would want to raise which does not deal with the Gachegache issue is the issue of the 1.5 million dollars dummy cheque which was presented to the President. It is not the first time that the President has been given fake documents. Recently in this august House, the President was given a fake speech and he read a wrong speech here. Then at the launch of the Marange-Zimunya Community Ownership Trust which was done on 12th July 2012, the President was actually given a dummy cheque and when we went to investigate and ask the companies, they said they did not do any pledges to that effect but a whole Minister Hon. Kasukuwere whom we thought that by telling the President that there is a 1.5 million dollars pledge, he is being a saviour to the people of Zimunya-Marange, we realised that he is not actually being a savior. Instead of being a leader, he is actually misleading; instead of being a presenter, he is actual misrepresenting to the President.
Mr. Speaker Sir, we actually urge this House to investigate these issues and ensure that the Hon. Minister actually explains where he got that. When we asked the Minister on why he mentioned that there is a 1.5 million dollars pledge and there was no written communication or written contacts between the Ministry and the affected mining companies, the Minister said there was no need for us to do anything written since the mining companies are owned by the Government. That submission by the Minister raises a lot of questions on the capacity of the Minister. How can a Minister say we do not need a written agreement on issues to do with Community Share Ownership Trust?
For your own information Mr. Speaker Sir, the law is not very clear regarding the issue of Community Share Ownership Trusts. If you read the Indigenisation and Economic Empowerment Act from the first page to the last page, you do not even see the phrase-Community Share Ownership Trust. That is why you see in the report the words that are used there are to do with pledges. So, if there is a pledge you cannot enforce and you cannot force somebody to pledge because a pledge is not mandatory. It does not have a legal binding effect. So, that is the problem that we have with that issue.
Then the other issue that I would want to raise is the issue to do with the missing US$15 billion-the alleged missing of the US$15 billion. The Committee through its findings noted that a company by the name of Jinan externalised US$500 million and I would want this august
House to investigate this issue fully so, that we would actually know
how a company called Jinan managed to externalise such an amount of money US$500 million in one transaction to Malawi because every financial transaction that you do, be it a transfer of a US$1 using even Ecocash, the RBZ would actually know every transaction.
Actually, if there is a transfer of US$500 million, the RBZ should have known through its internal control systems that this is a huge amount of money. To make matters worse we have two companies which are registered as Jinan I do not how the Registrar of Companies managed to do that because whenever you want to register a company, the first stage is for name search. They should have picked it that there are two names and that there is another name for Jinan, but they did not pick it up. So, we actually think that there is some collusion between the Jinan mining company, RBZ and the Registrar of Companies because they should have picked it. -[AN HON. MEMBER: Matsotsi]-
Then the other issue is to do with the Act itself. The Indigenisation Act is very clear that 51% will be ceded to local indigenous people, previously disadvantaged people. If you look at the share ownership structures of these companies except for Marange, there were 50/50 which was not 51%. Marange was 100% owned by the Government, yet the very same Government would say we did not manage to locate or even to see how the 15 billion missed. How can the very same Government which is the largest shareholder in this company say they would not know how the monies got missing when they are the majority shareholders in those companies? So, we really need to investigate on
Looking at the other side of the coin Mr. Speaker, we have companies like Mbada which have done some projects for the community. They have tried to build schools; they remitted around 35 million to Treasury and they have also assisted the Government in paying the wage bill for the salaries which is part of their social corporate responsibility programmes. They have spent more than a billion dollars on Government programmes then we are made to believe by the Minister that they have failed to pay 1.5 million-for me, it does not add up. It means something somewhere went wrong, the Minister did not engage the companies properly. I am sure if he had engaged the companies properly then US$1.5 million compared to the amount of money they had remitted to the Government, the fiscus and all the activities they were doing, they would have managed to do that.
HON. SITHOLE: My recommendation to this august House is the
consolidated mine should be properly investigated. Ever since it resumed business, the prices of diamonds per carat suddenly reduced by more than 80% and we actually think and suspect that there is some internal trading there. Also the companies that were closed, my recommendation is that the Government must look at each company one by one, so that we have a scientific through investigation into the operations of those companies and that a proper solution would be found not to give a blanket decision on all the companies. I thank you Mr.
HON. MATUKE: Mr. Speaker Sir, I move that the debate do now
Motion put and agreed to.
Debate to resume: Wednesday, 26th October, 2016.
On the motion of HON. MATUKE, and seconded BY HON. D.
SIBANDA, the House adjourned at Nineteen Minutes to Five o’ clock p.m.
 The Herald, 23 March, 2016
 The Chronicle, 25 November, 2015