You are here:Home>National Assembly Hansard>Vol. 37>NATIONAL ASSEMBLY HANSARD - 13 JULY 2011 VOL. 37 NO. 37


Wednesday, 13th July, 2011

The House of Assembly met at a Quarter-past Two 0'clock p.m.



(MR. SPEAKER in the Chair)



MR. SPEAKER: I want to draw the attention of the House to the error on today's Order Paper where the list of Members was inadvertently omitted. The list will be included in the correct Votes and Proceedings.


MR. SPEAKER: I have to remind hon. members to switch off their cellphones before the business commences as the cellphones may interfere with the digital audio recording equipment.


MR .CHIKWINYA: Thank you Mr Speaker. In the absence of the substantive minister, I will direct my question to the Deputy Minister of Industry and Commerce. When are the salaries of the workers at ZISCO Steel going to be paid since we were informed that the deal was signed sometime back?

THE DEPUTY MINISTER OF INDUSTRY AND COMMERCE (MR. BIMHA): Thank you Mr Speaker, I would like to first of all thank the hon. member for posing that question, which has to do with ZISCO, which again has to be answered in the context of the ESA deal.

The signing of the agreement which was done was meant to set the ball rolling in the implementation of that deal. In essence, it gave room for other ministries, which were going to be engaged particularly those ministries associated with giving the enabling environment. These include the Ministry of Energy and Power Development as it relates to power, the Ministry of Transport and Infrastructural Development as it relates to the issues of rail transportation and the Ministry of Finance.

The understanding was that we would then engage ESA in these various discussions, ending up with agreements with all those various ministries, which would then conclude the deal between ESA and government and that would mean the operationalization of the agreement. That would mean ESA would take over not only the debt, but look after the payment of whatever is owed at the moment.

The information as of now is that most of these discussions are almost getting to the conclusion stage. We have probably one or two ministries which are still negotiating, but the position is that by the end of this month, we should see the conclusion of the various agreements between ESA and those various agreements, which will the see the operationalization of the agreement and the payment not only of the workers' salaries, but also of those debts that are owed both internally and externally.

MR. CHIBAYA: Thank you Mr Speaker. My question is directed to the Minister of Water Resources Development and Management, Baba Sipepa Nkomo. Minister, can you give us an update on the progress that you have made so far on the construction of the Gwayi-Shangani Project and the Zambezi Pipe Line Project, and explain to the House when you expect to finish the projects.

THE MINISTER OF WATER RESOURCES DEVELOPMENT AND MANAGEMENT (MR. S. NKOMO): Thank you very much Mr Speaker Sir. I want to thank the member for asking the question. I just want to say that people should appreciate that the project is 100 years old this year. It was muted as you all understand, in 1912. It has been going on over successive governments. I am saying, the Inclusive Government has the political will to undertake this project and we (Cabinet) in December 2009 agreed to have this project as a national project and in the 2011 budget the Gwayi-Shangani Dam got an allocation from the fiscus. If you also read the medium term plan that Minister Mashakada did, the national Matabeleland Zambezi Water Project is in that plan, and I am very pleased that government has seriously taken this project as a priority. I think that in the years gone by, government did not take the project seriously, but allowed the private individual to actually run the project and it did not succeed at the time. Now government is very serious about the project and I am delighted to say that there is unanimity on this project. The Gwai-Shangani Dam as you know, work stopped in 2007, due to lack of funds.

We have been allocated an initial US$4m for the project to get started. We have not started yet and the reason is that we are waiting for the State Procurement Board to make a decision for us to be able to start. I am told that it keeps on coming every Thursday for consideration and we have not received any resolution. I hope that we will receive a resolution very soon and once we receive a resolution the contractor is ready to move on site and the construction of the dam can continue. I am pleased to tell the House that government has a Memorandum of Understanding with a Chinese Company with the intention of utilizing the line of credit from China, and the last time the Chinese delegation from Beijing was here, it went to the site in Gwai and they toured the area where the pipeline is going to go through. They have gone back to China for various other reports that they are doing and they will come back.

We are also in discussion with the Minister of Finance for this purpose. What I can say is that, at least something is now happening, but as you know Mr Speaker phase (1) is actually the construction of the dam itself and phase (2) is the construction of the pipeline from the dam to Bulawayo and phase (3) is the construction of a pipeline from Zambezi to the dam. Phase (1) and (2) will be done simultaneously. I am pleased to tell hon members that all things being equal we are likely to get this project off the ground before the end of the year - I am talking about the pipeline but for the dam itself we are only waiting for the State Procurement Board to make a resolution for us to be able to start. Thank you Mr Speaker.

MR. S. NCUBE: Thank you Mr Speaker, you are saying you are waiting the State Procurement Board so that you start the dam, but as far as I know there was an issue which was supposed to be cleared between the Minister of Mines and your ministry. How far have you gone in dealing with the mine that is there on the site of the dam, which is going to pollute the dam.

MR. NKOMO: Thank you Mr Speaker, I apologize, I forgot to thank Mr. Chibaya for the question and I thank Hon. Ncube for the supplementary question, which again requires me to thank the person who is asking the question. I think that the issue that you are talking about is the issue of the liberation mine, and I want to say that the stakeholders in Gwai have not really put what they believe is a complaint to us in writing. We keep dealing with this issue through the media. I want to say that where they propose that liberation mine should go, once the dam is build that liberation mine will be flooded. So, there will be no point in actually having a mine on that spot because the mine will be flooded. I do know that some have gone about saying that where there is a mine it takes precedence to water.

I think there is confusion there, the pipeline project has been approved by government and the liberation mine is owned by an individual. I believe it will not arise because there will be no opportunity for them to start digging, therefore there will be no liberation mine there. Let us assume there was a mine there, it will be flooded , the structure of the dam itself will be such that it does not actually flood the Victoria Falls road, so we are working hard but the liberation mine where it is will be flooded, and therefore, there is no question of having a mine there because it will eventually be flooded. I had a discussion with Minister Nhema and Minister Mpofu and three of us made sure that there are no mines in the basin of the dam so that the water can not be polluted. I can assure hon member that that will not happen. The project itself takes precedence over the things that you are talking about.

MR. ZHANDA: I just want to make a follow up with the Minister. He alluded to the fact that the dams he has talked about were provided for in the 2011 budget. What is government policy in terms of major projects like these dams which require huge amounts of money? He also referred to the Medium Term Plan; what does it say in terms of funding for these major projects? What is government doing, given the inadequacy of our Budget, to attract investors to come and construct these major projects like dams? Thank you.

MR. SPEAKER: Hon. Zhanda that is a substantive question but however I will allow the minister to respond to your question.

MR. NKOMO: Thank you hon Zhanda. I will only answer part of the question because I believe the other part should be actually answered by the Minister of Economic Planning and Investment Promotion. I think it is common cause that government is on record that in some major projects we would like to partner with the private sector and on a number of them, we are partnering with the private sector. On this particular project, we are on record that the government does not have the money to complete those kind of projects and we keep negotiating with the private sector. I told you about the Chinese delegation that was here because that is the private sector now,

and we keep negotiating with them, and I have already told you about the Chinese delegation that was here and it is because that is the private sector. Now, Tokwe-Mkorsi is another. We are going to be partnering the private sector, and where we believe government cannot do it on its own, we will still continue to talk to the private sector to make sure that the projects are successful.

MRS SHIRICHENA: My question to the Minister of Constitutional and Parliamentary Affairs is; minister, can you update this House when we are likely to get the 2011 Constituent Developmemt Fund money seeing that we have already gone through half of the year?

THE MINISTER OF CONSTITUTIONAL AND PARLIAMENTARY AFFAIRS (ADV. MATINENGA): Thank you for affording me the opportunity to answer this pertinent question, which I am asked almost everyday. Firstly, honourable members will know that we are in a cash budgeting environment. What it means is that as the Minister of Finance wants to say 'we eat what we hunt'. Even after hunting, it means that we have to look at various needs and then decide on how we should then apportion what we have hunted in respect of those needs.

What it means is that we find ourselves in a situation where we have to apportion the very little we are getting from various sources and then say we apportion this to CDF, Civil Service salaries, health et cetera. So, when there is sufficient money to apportion to all these other sectors, CDF will definitely be considered and money will be paid out. But let me say at this juncture that unlike last year when we disbursed money to every constituency, it is going to be different this year because not everybody who got money last year has properly accounted for it.

So, what is going to happen this year is that; if you have not submitted your returns for the disbursement for 2010, then you cannot expect us to be throwing good money after bad. So when that money is available, members will have to make sure that they have accounted for what they got before any further disbursements are made. Let me say that we only have about 60 Members of Parliament who have so far made returns as per requirement and it is only those 60 who will get money when the money is available. So I urge members to properly account for the money because without a proper accounting, there will be no disbursement. I thank you.

MR. MUTSEYAMI: My question to Minister Mpariwa is with regards to drought, which has affected most parts of this country especially the province that I come from, Manicaland. There is real drought and the situation is desperate. I am kindly asking to know from the hon. Minister; what is government's plan with regards to relief aid if ever there is any and when probably will it be coming to the rural communities?

THE MINISTER OF LABOUR AND SOCIAL WELFARE (MS. MPARIWA): Thank you Mr. Speaker. I also want to thank the honourable member for this pertinent question, which I also will address at the end during the question with written notices. Yes, we understand that Manicaland is drought prone. Yes, we do know that the rest of the other areas in the country have not harvested enough food, and as government, we have a plan in terms of saving our communities.

Let me start with what I have done now. As I speak, I have been going right round the provinces. The honourable member is not an exception in terms of my interaction with him during the time that I have been in Manicaland meeting with the communities in terms of what their needs are and; seeing is believing, so that it actually assists in the planning.

Number one is that as government we have a plan in terms of the people that we say are labour constrained. These are the people who cannot perform any duty in terms of public works or food for work programmes. These are people such as the elderly, the sick, the vulnerable, households headed by females or child-headed households. We do give hand-outs in terms of a coupon that will be given to a household, which is worth US$20, and the US$20 is for them to access granary from GMB. As I speak GMB has actually moved grain from surplus areas to drought prone areas.

In Murambinda and Masvingo, as I speak, grain is actually being moved from surplus areas to drought prone areas. We have gotten assistance from the Ministry of Agriculture where they have actually given out 50 000 metri tonnes of maize for us to utilize for the time being and in this programme, these people will access the food for free. We call it 'Food For Free' and meanwhile we are waiting for the ZIMVAC - that is the Zimbabwe Vulnerability Assessment Committee to prove the figures, where the people are and the numbers. Then we will also top up in terms of the real figures because at the time this survey was done, people were still harvesting. We believe there are other pockets of areas which we can safely say they still face hunger. That is the first programme.

The second programme is where we have active people. I have answered this question on several occasions ,and I think this is my fourth time during my time in this Parliament. It means people are really worried in their communities. The second programme is that communities will actually gather and identify what public works can be done. This is what we have witnessed, for example, in Manicaland where people have actually volunteered to do the roads and do the irrigation scheme. Some of them are bad and are idle because they are a number of repairs that need to be done. So when one performs that kind of work, that is being active; what we call the household that can actually offer labour for food or for a coupon or for assistants from the NGOs. They will then work a 15 days period and they get US$20 so that they can access maize from the GMB. What we have said is that GMB should move the grain from GMB deports to the community, so that when people get their money, they will buy the maize. It does not make sense for people to travel long distances to get maize. The programme has to be community based for people to access food as quickly as possible. As government, we promote that people should rely on their activities and not to be spoon fed. They should not wait to get handouts from government and donors. However, if Hon. Members have suggestions, my office remains at your disposal so that this programme benefits everybody. It is the government's responsibility to feed its own people; we can not leave our people die of hunger.

MR. MUDARIKWA: My question is directed to the Minister of Economic Planning and Investment Promotion. Are we going to see some publications on the Medium Term Plan in indigenous languages like Shona, Ndebele or Kalanga.

THE MINISTER OF ECONOMIC PLANNING AND INVESTMENT PROMOTION (MR. MASHAKADA): Thank you Hon. Speaker. I want to thank the hon. member for the question, and I want to affirm that indeed the Medium Term Plan will be translated into vernacular languages as much as possible, Shona, Ndebele and other indigenous languages so that it can be read across the whole country.

MR. MAZIKANA: My question is directed to the Minister of Finance; is the government planning to present a supplementary Mid Year Budget and if not, how does Government intend to meet civil service pay rise? Thank you.

THE MINISTER OF FINANCE (MR. BITI): Thank you very much Hon. Speaker. I would like to thank the hon. member for a very important question. The position is that on 26 July, 2011, I will be presenting the Mid Term Review Statement. There will be no supplementary budget. A supplementary budget pre-supposes that there is capacity to increase your revenues. Unfortunately, there is no capacity at the present moment to actually increase our revenues. As hon. members know, our Budget for 2011 is US$2.7 billion. That Budget of US$2.7 billion pre- supposes that if we have to reach US$2.7 billion by the 31 December, 2011; we have to collect at least US$230 million a month. Unfortunately, we are failing to do this.

The sad news Hon. Speaker, is that between the months of January and June where we are supposed to make at least US$230 million per month, there are only two months that we have been able to break US$200 million limit and that is the months of March and the months of June. The only reason why in those months we were able to break US$200 million is because the months of March, June and September are quarterly payments dates for corporate tax. Otherwise on our own revenues, we are not able to meet the required revenue. The net result is that in the first six months of the year, we were actually at least US$100 million below the expected revenue.

Now, come the issue of any additional expenditure arising from wages or otherwise. The position Mr Speaker is this, as of now, assuming that we are going to stick to the budget of US$2.7 billion, we already project at the present moment before any wage increase, a fiscal deficit of close to US$500 million broken down randomly as follows:

Number one, is the extra US$110 million wage increase that we effected in January 2011. The second issue is financing the purchase of grain through the GMB. As hon. members know, we approved the purchase of grain of at least 250 000 metric tonnes to complement and create a strategic grain reserve of 500 000 metric tonnes, bearing in mind that we purchased about 250 000 metric tonnes last year. So, we are going to purchase about 250 000 metric tonnes of maize at US$285 per metric tonne. That will give you about US$110 million.

Mr. Speaker, there are other challenges like COPAC and other challenges like traveling. On traveling we have spent in the first quarter of the year over US$30 million [HON MEMBERS: Inaudible interjections] -That means in the second half of the year, we have to budget for that . This US$500 million does not even include the US$500 million projected fiscal deficit, does not include and take into account the cost of the Constitutional Referendum that this country is going to hold before the end of the year. So what it means is that an additional salary increase of US$260 million will create the obligation to find new money of at least US$42 million per month, but because we cannot find new money in a last fiscal space, it means that there has to be massive expenditure shifting. We have to eat into the current budget. So it is going to be a long winter of despair when we cut into existing budgets. That means that there will be a serious collapse of fiscal space and the government will simply be existing for wages and salaries. I will obviously give fuller details in the mid-term statement. The long and short of it is that there will be gnashing of teeth and the nation must brace for the tightening of belts Hon. Speaker.

MR. KANZAMA: Thank you Mr. Speaker. Minister, thank you very much for your brief answer. I just want to understand from the way you are narrating it, it seems we have got a very big gap to meet our requirement as a country. Now following the appointment of the new managing director of IMF, are you as Minister of Finance trying to broker a new relationship with IMF?

MR. BITI: Hon. Speaker, I need to complement my previous answer. I need to say that there are two things in our hands, which we can do to create additional fiscal space. The first one is implementation and execution of the Civil Service audit. There are 75 000 people that were picked up by that audit as having void or voidable contracts . So we need to move in and implement that audit to create additional fiscal space. The second issue is greater transparency, greater accountability vis-a-vis the issue of diamond revenues. In 2011, we have not obtained fresh money from diamond revenue. The quarrel we had and I gave a ministerial statement over where the US$174 million was, was in respect of revenues and income of 2010. In 2011, there is nothing, zero, aziko. So we need to be more transparent vis-a-vis the issue of diamond revenue. Coming to the issue of the IMF, we congratulate Ms. Laggard for her appointment. We think that the democracy and governance of the IMF is skewed in favour of the big powers. So we hope that she can implement the democratisation of the IMF, so that smaller countries like Zimbabwe with a 0.22% vote can have a say, which is not dependent on the size of its economy, but the fact that all countries are equal. If we are equal in the UN, where there is one country one vote, surely these international institutions like the World Bank, African Development Bank, we should be judged on the basis of equality, sovereign equality as opposed to the size of the pocket or the size of the economy. I thank you.

MR. MADZIMURE: My question is directed to the Deputy Minister of Industry and Commerce.In the absence of an agreement which the government had entered with ESSAR, we are told that you surrendered 80% of the iron-ore reserves that we have, which represents almost 40 billion tonnes. Can you explain to the House how did you arrive to a situation where we gave ESSAR 80% of the reserves and whether there was an agreement between yourselves and the Ministry of Mines?

THE DEPUTY MINISTER OF INDUSTRY AND COMMERCE (MR. BIMHA): Thank you Mr. Speaker. I would like to thank the hon member for the question which, in the light of earlier questions that have been put forward there was quite a lot of interest in ZISCO, which I think is very legitimate in the light of its strategic importance. Let me premise my response by unfortunately going back to the parameters that had been put forward for the bidder who would come as the most successful ones. The whole essence of government selling its shares to not only to ESSAR, but to whoever would have the successful bidder was really on the premise that the government wanted someone to take over the debt. We are talking about a debt to the tune of $240 million. The parameters that were put forward were; to look at a company which would have no problem in taking over the debt. Secondly, to look at a company which had the financial capacity not only to take over the debt, but to also invest in ZISCO. ZISCO is not operating and therefore anyone who comes to operate ZISCO needs to come out with investments to rehabilitate the plant and not only to do that, but also to invest in future opportunities that are to do with value creation. Therefore what we came up with in terms of the broad agreement was the issue of the government going into partnership with ESSAR in as far as ZISCO was concerned, and there, there was an agreement in terms of how that partnership would come in terms of shareholder structure. Secondly, it was also on the basis of the shareholding structure as regards BIMCO. BIMCO is the mining company of ZISCO, which has got resources around the country to mine iron-ore. It was on the basis of this discussion that the agreement was arrived at. The whole discussion of the shareholder structure, the whole discussion of the parameters of the agreement were subject to the discussion of this agreement with our principals. From our ministry, we are very delighted that our principals saw no reason to stop this deal from finalisation because it is set as a good example of partnership of government and outsiders. More so, when there is a lot of money required to kick start the ZISCO. Let me even go further Mr. Speaker to say I made reference to negotiations that are taking place between various ministries, which includes the Ministry of Mines in as far as these other issues to do with reserves. The discussions with these ministries are not just a question of discussion, but they also involve ESSAR making additional investments in those areas. I will give you an example, because ESSAR is concerned about the availability of power, ESSAR is prepared to make investments into power generation. I think the other day there was an article in the paper to do with Munyati Power Station. Because ESSAR is interested to ensure that there is adequate rail transport, ESSAR is also prepared to invest in NRZ, and we can go on, but these various agreements actually involve other ministries, and not the Ministry of Industry and Commerce alone. I thank you.

MR. MADZIMURE: Thank you minister but you did not answer the core of my question. Did we gave 80% of our reserves to ESSAR?

MR. BIMHA: Again, with the interest shown by the hon. member, I would like to ask through you for him to put this question in writing so that I can go and verify.

MR. SPEAKER: Hon. minister, are you telling the House that you are not aware whether you gave that amount or not because there is no research that is needed?

MR. BIMHA: Mr Speaker Sir, I made reference to the fact that the Ministry of Industry and Commerce was involved precisely in facilitating the process of selecting the final bidder. However, the details of a number of areas that constitute that agreement are still areas subject for discussion with the various ministries including the Ministry of Mines. Our interest as Ministry of Industry and Commerce is more to do with ZISCO, but obviously when you make reference to Bimcorp, there is also a lot of import that comes from the relevant ministry which is the Ministry of Mines. I would like to believe that once the current discussions are finalised, I am sure the final figures will be available for us to be able to answer with accuracy. I thank you.

MS. A. NDHLOVU: My question is directed to the Minister of Tourism and Hospitality Industry, Hon. Mzembi. There has been speculation on the suspension of S.I. 4660 of 2009, can you please confirm that and also give reasons of the suspension. I would also like to know the impact that it will have on the tourism sector. Whilst still on tourism, can you please explain to this august House the policy in your ministry with regards to the protection of the girl child recognizing that one Bulawayo girl was dethroned without a hearing?

THE MINISTER OF TOURISM AND HOSPITALITY INDUSTRY (MR MZEMBI): Let me take this opportunity to thank the lady questioner. Let me tackle the issue of S.I. 4660 of 2009. Yes, it was suspended; I am sure on the occasion of the last presentation by the Minister of Finance to the House on the fiscal policy, but the other one actually died because I think it had expired. However, I am in deep conversation with the Minister of Finance with a view to seeking his special dispensation to extend it. I have advanced the reasons why we should extend it, it is a good incentive for investment. In the absence of any fiscal support for the tourism sector, any instrument that facilitates savings in the sector will be welcome. So I must state that I am in discussion - I do not want to prejudice what discussions I am having with the Minister of Finance, but I am confident that we will receive a favourable response to our request.

Turning to the issue of the girl child and recent reports around Minister Mzembi fighting over a model with his Chief Executive. I think it is a matter that was given a spin by the Press. The minister issued a statement to the effect that he did not want to see a public trial of a girl child in our media. I was not in the position to debate the merits and demerits of why that girl was dethroned. What I was interested in was a fair trial or a fair hearing of the girl child outside the glare of the public media. I believe it is my responsibility to protect the integrity of all events that are taking place under the ZTA including pageant and pageantry. I am confident that with the measures that we have taken to date and that is taking the issue out of public glare, the girl child that Ms Ndhlovu seeks to protect will be given a fair hearing. I thank you.

MR. MADZIMURE: The issue that Hon. Ndhlovu has referred to is already in the public domain, what are you going to do to the Chief Executive implicated in the matter?

MR. MZEMBI: The Chief Executive is not implicated in this matter as far as I know. What we have done is to refer the matter to a select board of a selected group of the ZTA board that is gender sensitive, which is a gender committee of the ZTA to look into this matter because it involves a girl. We have said, all male protagonists in this matter must distance themselves from the case and allow wanavatete wevana ava vari muboard to deal with the matter, ini ndiri baba wevasikana ava, saMinisterso I must distance myself from the issues.

MR. CHIMBETETE: Thank you very much Hon. Speaker. My question is directed to the Hon. Prime Minister and the Leader of the House. Prime Minister this House is in trouble, this august House is in trouble. We once reported to you about the ministers not turning up here on Wednesdays for answering questions. So, Prime Minister I am pleading with you to take drastic measures against the minister. [HON. MEMBERS:Hear, hear]-

If the need be, to start off with, we need a register on every Wednesday for every minister here. Personally that is my proposal, but you as Leader of the House you know what measures to take.

Secondly, if they persist, I suggest that one day their allowances should be deducted. Thank you. -[Laughter]-

MR. SPEAKER: Order, order hon. members. Thank you very much hon. member for the passionate appeal that you have made to the Prime Minister, who is the Leader of this House.

THE PRIME MINISTER: Mr. Speaker, I do not know whether any question has been forwarded to me. It is a plea to ensure that every minister is here to answer questions by hon. members . We are seized with this issue, in fact, every Cabinet meeting on Tuesdays we table all questions on the order paper so that the various ministers are accountable. I will make sure that every Wednesday I am here to make sure that the people are here who are supposed to answer the questions. I see there has been some improvement on the number of executives who are here. Let us try to encourage them to come and answer questions. That is why we have to give focus to this House. Thank you.

Questions without notice interrupted by MR. SPEAKER in terms of Standing Order Number 33.



2. MR. BALOYI asked the Minister of Transport, Communication and Infrastructural Development to inform the House the plans regarding repair of the following rain-damaged roads and brides.

(A) Makombe-Malipati (Maliyati) Road.

(B) Chipinda Bridge.

( C) Chipinda-Muhlangulani-Sango Road.

(D) Chilonga Bridge.


(A) Mr Speaker, Sir, this road was graded last year and is in a reasonable state except that there are some sections which need graveling. There are plans to put in a grader again to grade it before October, 2011.

(B) Chipinge Bridge - Mr. Speaker, Sir, I believe the hon member is referring to the damaged Runde Bridge. This was damaged by Cyclone Eline 10 years ago. This bridge will be put to contract. There is a site visit for contractors on the 15th of July 2011, after which contractors will put in their bid and the building of the bridge will commence.

( C) Chipinda-Muhlangulani Sango Road

This road is at present being graded from Boli towards Chipinge Bridge (Runde Bridge).

(D) Chilonga Causeway

This causeway is under repair. Workers are on site. Stone is being collected. The causeway should be completed within three months.

3. MR. SISULU asked the Minister of Transport and Infrastructure Development to explain to the House:-

How much the government owes the New Limpopo Bridge (Private) Limited and when the final settlement of its dues is expected.

The implications of settling the debt in US Dollars when the deal was done in Zimbabwean Dollars.

Whether the payment of the road access fees and the other charges for using the bridge in not double taxation of the public.

THE MINISTER OF TRANSPORT INFRASTUCTURAL DEVELOPMENT (MR. GOCHE): Mr. Speaker Sir, the new Limpopo Bridge was the first Bot Project on roads in Zimbabwe. The Zimbabwe Government thus does not owe the new Limpopo Bridge anything. The concession agreement which was signed between the government and the new Limpopo Bridge expires in 2014.

There is no debt to be settled. The tolls are in US$ and were bench marked in US$.

The road network access fees is paid by all vehicles on entry into Zimbabwe at all Zimbabwe's borders. This is not limited to Beitbridge only. The money does not accrue to ZINARA or Ministry of Transport, Communications and Infrastructural Development, but goes to the Consolidated Revenue and is one of the many taxes that government levies.


4. MS. SHIRICHENA asked the Minister of Transport, Communications and Infrastructural Development why the following roads have not been completed since the early 90s;

i) Zvishavane-Rutenga Road

ii) Mataga-West Nicholson Road, Mberengwa District


146km long with 90km traversing Midlands Province and the remainder (56km) in Masvingo Province.

The First 50km in Midlands was surfaced in the early 90s. The ministry would like to continue upgrading this road to surfaced standard. Unfortunately, Ministry of Finance does not have the funds for the continuation of the project. However, Ministry of Finance provided funds for road re-gradings for year 2010 and 2011 and this road in question was regraded between 21/05/10 and 06/06/10.

Due to high traffic volumes, the gravel road now requires regrading and this is going to be done week beginning 4th July 2011.

MR. SPEAKER: Hon. members, normally when ministers are speaking we give them due respect that they deserve and not to interrupt whilst they are speaking.

5. MR. CROSS asked theMinister of Transport and Infrastructural Development to inform the House of the details about the total revenues received by the Zimbabwe National Road Authority during 2010 and the subsequent allocations to Local Authorities and National Directorate.

THE MINISTER OF TRANSPORT AND INFRASTRUCTURAL DEVELOPMENT (MR GOCHE): The total revenues and subsequent disbursements to Local Authorities and National Road Directorate are as follows:

Total Revenue Received

US$58, 719, 864.62

Urban Councils Routine Maintenance

US$4, 350, 156.83

Rural Councils Routine Maintenance

US$2, 837, 844.84


US$4, 760, 000.00

Roads Directorate

US$10, 439, 087.20


US$22, 387, 088.87







Bindura RDC

2, 590, 000.00

2, 590, 000.00


Mumhurwi road 26km

6x10m span bridge

Bubi RDC

1, 100, 000.00

100, 000.00

1, 000, 000.00

Ilitshe road 19km


Chaminuka RDC

410, 000.00

410, 000.00


Pote bridge


Mazowe RDC

750, 000.00

750, 000.00


Potlock road 30km


Mhondoro Ngezi RDC

1, 830, 000.00

1, 830, 000.00


Battlefields road 50km


Pfura RDC

592, 673.00

474, 138.57

118, 534.43

Chinyanda 30km

Nyamahodogo 24km

Thsolotsho RDC

716, 230.00

150, 00.00

566, 230.00


Umguza RDC

1, 599,991.80

250, 000.00

1, 349, 991.80

Ilitshe road 12km

Umguza Bridge



6, 554, 138.57


The following tables also show the total revenues and subsequent disbursements to Local Authorities and National Road Directorate.


Trial Balance

For: December 2010

Trial Balance


Account Type



PY Debts

PY Credits

Other Income



10, 716.86


Sales Abnormal Load fees

Trading Income


84, 110.53


Sales Fuel Levy fees

Trading Income


18, 397, 199.21


Sales Overload fees

Trading Income


788, 174.67


Sales Toll fees

Trading Income


16, 820, 181.89


Sales Transit Coupons

Trading Income


13, 365,599.96


Sales Vehicle License fees



9, 253, 881.50


Total Revenue Received


58, 719, 864.62







51, 543.75

Bindura Town Council


90, 585.95



270, 500.00

Chegutu Town Council


50, 058.50



66, 118.50

Chiredzi Town Council


39, 237.50



73, 038.00

City of Bulawayo


324, 000.00

City of Harare


2, 265,000.00

Epworth Local Board


36, 832.00

Gweru UC


194, 940.00



74, 163.75



80, 481.75

Kariba Town Council


65, 611.38

Karoi Town Council


65, 292.75

Kwekwe UC


103, 573.00

Lupane Local Board


52, 250.00

Masvingo UC


50, 000.00

Mutare UC


67, 000.00

Norton Town Council


64, 042.00



48, 380.25



58, 500.00

Rusape Town Council


`17, 053.50

Ruwa Local Board


59, 464.50

Shurugwi Town Council


19, 502.50

Vic Falls


62, 987.25




4, 350, 156.83




Beitbridge RDC


32, 534.00

Beitbridge RDC


37, 582.50

Bikita RDC


26, 179.00

Bindura RDC


45, 226.00

Binga RDC


49, 442.50

Bubi RDC


41, 991.00



86, 850.75

Chikomba RDC


61, 943.00

Chimanimani RDC


134, 640.56

Chipinge RDC


113, 551.50

Chirumanzu RDC


56, 880.00

Chivi RDC


50, 320.50

Gokwe North RDC


28, 292.50

Gokwe South RDC


46, 134.00

Guruve RDC


55, 875.00

Gwanda RDC


52, 078.50

Hurungwe RDC


53, 654.00

Hwange RDC


65, 568.50



72, 198.75



54, 172.13

Karoi RDC


24, 267.00

Kusile RDC


37, 983.00

Makonde RDC


115, 265.00

Makoni RDC


111, 060.63

Manyame RDC


53, 054.50



43, 024.88

Matobo RDC


78, 227.75



40, 000.00

Mberengwa RDC


79, 388.00

Mudzi RDC


54, 871.88

Murehwa RDC


59, 687.50

Mutare RDC


114, 743.13

Mutoko RDC


56, 569.00

Muzarabani RDC


100, 506.50

Mwenezi RDC


59, 841.00

Nkayi RDC



Nyaminyami RDC


30, 314.50

Nyanga RDC


73, 089.50

Pfuri RDC


128, 887.00



71, 400.75

Sanyati RDC


40, 078.00

Tongogara RDC


46, 029.00



75, 122.50

Zaka RDC


61, 358.88

Zibagwe RDC


114, 547.25



2, 837, 844.84



4, 760, 000.00


Roads Directorate


10, 439, 087.20




15, 199, 087.20

MR SULULU: Thank you Mr Speaker I just heard that Zimbabwe Rural Council has been allocated US$680 000, and it was meant to do some work on bad road, what I want to ask the minister is; what criteria was used to put those funds to bad roads? From my understanding it is a road that is going to commercial farms, we have a road from Silobela to Kwekwe, I think now it is more than 15 years, but it needs to be maintained or even tarred. Why didn't the minister consider doing something to that road.

MR. SPEAKER: Order, may the hon member put that question in writing as a substantive question because we are not dealing with the criteria of allocating, but merely responding to the question. Put your question in writing hon Sululu.


6. MR. CROSS asked the Minister of Transport and Infrastructural Development to explain how the Ministry intends to deal with the Corporation's Financial needs and what steps are being taken to ensure that the decision by Cabinet to privatize the airline is implemented as soon as possible as the crisis at Air Zimbabwe is not in anybody's interest.

THE MINISTER OF TRANSPORT, COMMUNICATIONS AND INFRASTRUCTURAL DEVELOPMENT: (MR. GOCHE): Let me begin by correcting the hon member's misconception that Air Zimbabwe is a Corporation, Air Zimbabwe is a private company wholly owned by the State. As regards the financial needs of Air Zimbabwe, it is my Ministry's intention to secure capital injection into air Zimbabwe so that immediate challenges such as payment of retrenchment packages for retrenched employees and payment of service suppliers are urgently resolved. Equally, Air Zimbabwe needs new equipment to be competitive and continue to uphold its blameless safety record.

The Privatization of Air Zimbabwe can only be realized when its balance sheet is attractive. Air Zimbabwe currently has a debt overhang of about US$110m. It is very difficult to attract reputable investors when your balance sheet is in such a State. Air Zimbabwe needs to be recapitalized first and then gradual steps can then realistically be taken to shed off some equity by government for uptake by private investors. Cabinet is fully briefed on this matter.


7. MR. CROSS asked the Minister of Transport to categorical assure the House that funds from ZINARA have not been diverted to Air Zimbabwe in an effort to keep the Airline operational.

THE MINISTER OF TRANSPORT, COMMUNICATIONS AND INFRASTRUCTURAL DEVELOPMENT: (MR GOCHE): The hon member should be aware that ZINARA was operationalized through the Roads Act Chapter 13:18. This Act provides that funds from the road fund shall be applied in accordance with the provisions of the Act. Therefore let me categorically assure the hon. members that ZINARA funds were not diverted to Air Zimbabwe to keep it operational.


14. MRS. KARENYI asked the Minister of Local Government, Urban and Rural Development to inform the House whether prior to this signing, as a witness, of the Memorandum of Understanding with Augur Investment an Estonian based company for the construction of the Airport Road on 21st May 2007, he had been presented with a due diligence report on Augur Investments and if he can produce it.

THE DEPUTY MINISTER OF LOCAL GOVERNMENT, URBAN AND RURAL DEVELOPMENT (MR. ZVIDZAI): Thank you very much Hon Speaker, the hon member of Parliament Hon. Karenyi who has asked the hon Minister of Local Government, Urban and Rural Development to inform the House whether prior to this signing as a witness of the Memorandum of Understanding with Augur Investments an Estonian based company for the construction of the Airport Road belongs to City of Harare although it has a national profile. The ministry had to intervene to support City of Harare on this project since the local authority had no capacity to undertake it on its own. As you are aware, the Airport Road is of strategic importance to our country as it connects the capital city with the International Airport.

Before the city engaged in any business transaction with Augur Investment a team of three people was dispatched to Ukraine in 2007 to assess the credibility of Augur as a development partner. The team comprised the then Secretary for Local Government, Rural and Urban Development Mr P.I. Mbiriri, Mr M. Mahachi a Quantity Surveyor then Chairman of the Commission running the affairs of the City of Harare and Town Clerk, Dr T. Mahachi.

The trio visited Augur Investment Headquarters in Ukraine. They also had a tour of some of the real estate projects implemented by Augur. Furthermore, the team also interacted with government officials who confirmed the unquestionable credibility of Augur Investments.


15. MR S. MUSHONGA asked the Minister of Local Government, Urban and Rural Development to inform the House the steps the Ministry is taking to safeguard members of the public in urban and peri-urban areas from being duped into buying residential stands at exorbitant purchase prices before landowners obtain subdivisional permits in terms of the Regional and Town and Country Act Chapter 29:12, Section 26 which states that once the owner obtains the subdivisional permit they resale to new buyers.

THE DEPUTY MINISTER OF LOCAL GOVERNMENT, URBAN AND RURAL DEVELOPMENT (MR ZVIDZAI): Mr Speaker Sir, the Hon. Mushonga's question has provided me with an opportunity to make a number of clarifications on my Ministry's role regarding land subdivision, land delivery and land sales in urban and peri-urban areas. I shall give my answer in three parts.

The first clarification is on subdivision of land. My Ministry, honourable members, is not responsible for controlling land sales by the private land owners referred to by the honourable member. It is, however, responsible for issuing of permits for the subdivision of farm land as well as overseeing the subdivision of urban and peri-urban land in terms of a number of statutory provisions applicable to the different types of land involved. In this regard, it should be noted that Section 26 of the Regional Town and Country Planning Act, which the honourable member cited, is not one of those provisions.

Let me put the House on the correct track regarding statutory provisions and procedures as follows:

a) Private Land.

The rule is that no one shall parcel out a portion of land which is held under title by a private entity without a permit granted in terms of Section 40 of the Regional Town and Country Planning Act. In that context, applications relating to private land which falls within the boundaries of an urban local authority are processed by urban local authorities and those that fall within a rural local authority and Town Boards are directly processed by my Ministry.

In both cases permits are issued with development conditions that guide the implementation of the relevant scheme.

b) Municipal Land

Land that is owned by an urban local authority is subdivided under Section 205 of the Urban Councils Act. The relevant subdivision plans (layout plans) are checked and approved by my Ministry.

c) State Land

Land that is owned by government is subdivided under Section 43 of the Regional Town and Country Planning Act. Most of the plans are prepared, checked and approved by my Ministry.

Before housing development and any other form of development can take place, on any of the said pieces of land, the relevant subdivision procedure should have been completed and the relevant permit conditions such as those relating to servicing complied with.

The second clarification is on private land sales. In all the given scenarios, like i have already indicated, the process of land delivery and land sales are indeed supposed to be instituted after the above process of land subdivision has been approved by the respective local authority and/or my Ministry.

I am indeed aware that, in some areas, some unscrupulous persons have sold land before obtaining the necessary subdivision permits or plan approvals, but I would like to emphatically indicate that this is irregular in terms of the law and individuals should guard themselves against such practice. The land sales that often disregard the law are in essence, private transactions that may inevitably turn sour for the less prudent who are often taken for a ride by the unscrupulous landowner.

Unfortunately, it is not my Ministry's responsibility to regulate and manage the actual sale of privately owned land. Government has other systems in place which guard against land transfers that are done irregularly. Our people should learn to check the status of land before spending money on unethical ventures. My Ministry, through its various structures and records, is prepared to facilitate access to information or directly provide information relating to the planning status of any given piece of land when approached by the relevant bodies and individuals.

The third clarification is on transactions involving Municipal and State land to the extent that most of the land in urban and peri-urban areas is Municipal land and State land and hence not land that may be disposed of by the "landowners" the honourable member is referring to. It is necessary to briefly make a further clarification on the procedure for handling such land.

All municipal land is disposed of by the relevant Municipality while Urban State Land is disposed of through my Ministry.

There are various institutional arrangements that Government and Municipalities can enter into with land developers and housing cooperatives to plan, service and develop municipal land and State land. There are, however, no arrangements which provide for an individual to sell such land as a "landowner". There may well be some individuals who purport to be selling "stands" when they are merely administering a specific cooperative or implementing an agreed infrastructural project. It is, therefore, incumbent upon any affected individual to bring to my attention such misrepresentations so that the relevant imposters can effectively be dealt with.


17. MR J.M. GUMBO asked the Minister of Local Government, Rural and Urban Development to explain the Government's position on business operator's licences that are counter-active to the Government's drive towards indigenisation.

THE DEPUTY MINISTER OF LOCAL GOVERNMENT, RURAL AND URBAN DEVELOPMENT (MR. ZVIDZAI): I want to thank Hon. Gumbo for his question. Mr Speaker, Sir, to begin with, the Empowerment thrust has gained momentum, the issuance of operators licenses by local authorities was on a first come first served basis, irrespective of sector or nationality. The new thrust of the Indigenisation and Empowerment Act, certain sectors of the business in this country should first apply to the Immigration Department clearly indicating the type of business, scope or sector they wish to undertake. Local authorities only issue operator's licenses to foreigners who have been cleared by this department. With this arrangement, the indigenous people are protected against competition from foreign nationals in certain business sectors.

Mr. Speaker, on another note, operator's license fees should facilitate, rather than curtail investment, with priority given to the indigenous entrepreneurs, in line with our indigenisation and economic empowerment thrust. My ministry has maintained that these fees be attractive to our indigenous people who have been economically marginalized for quite some time.


1. THE DEPUTY MINISTER OF LOCAL GOVERNMENT, RURAL AND URBAN DEVELOPMENT (MR. ZVIDZI): Mr. Speaker, Sir, my ministry has no mandate to regulate rentals on private property, as the Rent Board does not fall under my ministry. I can only intervene when the rented properties belong to a local authority. It is unfortunate that the hon. member has directed his question to my ministry. Can this question be directed to the relevant ministry? However, as Ministry of Local Government, we are also really concerned about the high rentals, which we feel are prohibitive and thwart the current indigenisation and empowerment drive.


19. THE DEPUTY MINISTER OF LOCAL GOVERNMENT, RURAL AND URBAN DEVELOPMENT (MR. ZVIDZAI): Mr. Speaker, the Garikai arrangement took place when the Ministry of Local Government was Ministry of Local Government, Rural and Urban Development, Public Works and National Housing. The arrival of the Inclusive Government has transferred the mandate of housing delivery to the Ministry of National Housing and Social Amenities. This question is therefore, possibly best addressed by that Ministry. Thank you.

MR. SPEAKER: Can the hon. member redirect the question to the relevant ministry.



20. MR. MUDIWA asked the Minister of Local Government, Urban and Rural Development to inform the House of how many people have been relocated from Chiadzwa and to state the form of compensation they received.

THE MINISTER OF LOCAL GOVERNMENT, RURAL AND URBAN DEVELOPMENT (DR. CHOMBO): 1.0 The diamond mining at Chiadzwa will affect a total of 4 321 households. The Government has adopted a phased approach to the relocation exercise. The first phase will comprise ten villages and they will be relocated to the 11 500ha in Arda Transau farm. The ten villages have a cumulative households of 1 800. These villages cover an area of 30 kilometers in radius. The prioritisation of households to be relocated has been informed by the geological realities with regards to diamond ore deposit locations and security dictates.


1. Valuation - The companies which were awarded tenders to mine diamonds in Chiadzwa area have the obligation not only to relocate the affected households, but also compensate them on the permanent structures they had put up. The valuation exercise to establish the quantum and quality of the villagers' property, which will be the benchmark for the compensation, is on-going and to date 1 274 have had their property valued.

2. Housing - Government has approved the construction of four roomed houses, thatched kitchen and a blair toilet for each household. This is in keeping with the precedent set by the Murowa Diamond Mine in Zvishavane. The houses will be solar powered. To date, a total of 234 houses have been constructed and several others are at various stages of completion. A total of 122 households have been relocated to Arda Transau.

3. Education - The existing Arda Primary School has been renovated to accommodate the relocating primary school pupils. Plans are underway to expand the school so as to accommodate more pupils. As a stop gap measure, the secondary school pupils will be accommodated at Odzi Secondary School which is within the Ministry of Education, Arts, Sport and Culture stipulated ten kilometre radius. The construction of a primary school is at an advanced stage. This will cater for the 1 041 primary school pupils to be affected by the first phase of the relocation programme.

4. Water - Efforts to drill boreholes were fruitless as the geological formation at Arda Transau has low water retention qualities. There are two boreholes serving the community at present but plans are underway to construct a water reticulation plant at Odzi River. The Zimbabwe National Water Authority is working closely with the mining companies in order to provide portable water to the relocated households.

5. Agriculture - Each household shall be allocated one and half hectares for agricultural purposes. One hectare shall be for dry land farming while half hectare shall be under irrigation. The designing of the irrigation models is underway. Over and above the irrigation system, the relocated households will be assisted with the inputs for the first year in order for them to settle. Arda Transau provides a far much better option as far as agriculture is concerned as the area has rich soils and receives more rainfall than Chiadzwa area.

It should be noted that there is massive construction work at Arda Transau as the country moves towards the full compliance with the Kimberly Process Certification.

6. Conclusion - Valuation in respect of the target households was done and the value has been translated to US dollars specific to each and every household. The valuation figure shall definitely be a relevant factor in the consideration of the compensation matter. Noteworthy is that the valuation has translated into US dollars and must be viewed in the context of the compensation equation. Thus, the housing units constructed for the relocating households would in a way constitute an input towards compensation. At the appropriate time, there shall be a tally exercise in regard to the compensation figure as per valuation and the cost of infrastructure development that is the four roomed main house, thatched kitchen and the ablution facilities.


21. MS. SHIRICHENA asked the Minister of Local Government, Rural and Urban Development to inform the House whether there is a committee that deals with boundary disputes in the country, and if so, when it is going to solve the dispute between Masvingo and Midlands Provinces with regards to Mberengwa and Mwenezi Districts where people are fighting each other over boundary disagreements.

THE MINISTER OF LOCAL GOVERNMENT, RURAL AND URBAN DEVELOPMENT (DR. CHOMBO): May I inform this House that the Minister of Local Government, Rural and Urban Developmentis mandated in terms of the Provincial Councils and Administration Act [Chapter 29:11] as read together with the Rural District Council Act [Chapter 29:13] to deal with boundary disputes between provinces and districts. However, the hon. member may want to know that the ministry has no standing committee that specifically deals with boundary disputes. What the ministry has are administrative arms, namely Provincial Administrators, District Administrators, and Provincial Planning Officers who are mandated to handle such matters as and when they arise. In the event that these offices fail to resolve such matters the minister in terms of the said Act may appoint a committee/investigation team to look into the dispute and submit recommendations on the way forward.

Mr. Speaker Sir, the fact of the matter in respect to the Mwenezi/Mberengwa boundary dispute are as follows;

The area in question now forms part of the model A1 resettlement scheme.

Before the colonial era, Sovelele, in Mwenezi used to be under Chief Muketi. During the colonial period, the bulk of the area was taken over by white settlers and converted into a commercial farming area. As a result, Chief Muketi and his people were trans-located to Mberengwa in the Midlands province and the chief retained his chieftain-ship. Pursuant to the trans-location, a portion of Sovelele was reallocated to Chief Mazetese who came from Fort Rixon in Matabeleland south. Chief Mazetese also retained his chieftain-ship in the new erea

With the advent of the fast track land redistribution exercise, a large number of families from Chief Muteki in the Midlands returned to Sovelele and were absorbed under the Model A1 Resettlement scheme. In addition, another contingent of land hungry families from the nearby Maranda area also moved into the same area.

Subsequently, the incumbent Chief Muteki passed on in Mberengwa and a successor, who was now resident in Sovelele, was installed as a new Chief Muteki. The new chief is however, reluctant to move back to Mberengwa arguing that he would rather exercise his authority in his ancestral land (Sovelele). This stance by Chief Muteki inevitably triggered conflict with Chief Mazetese.

Mr. Speaker Sir, the foregoing shows that there is no typical boundary dispute in the area in question. The problem revolves around whether or not Chief Muteki's chieftain-ship is now in Masvingo or Midlands province. The Provincial Administrators in the affected provinces have been actively pursuing this matter with the view to finding a solution to the problem. In this regard, joint meetings have been held and it was concluded that the area in question is indeed part of Masvingo Province. What is outstanding is for Chief Muteki to make a choice between trans-locating to Mberengwa and lead his people or remain in Sovelele as an ordinary subject of Chief Mazetese. However, it is important to note that whichever option he takes will not translate to him losing his resettlement land.

Mr Speaker Sir, this is a matter that my Ministry is currently seized with and are certain that a workable solution will soon be found.


22. MR. MAHLANGU asked the Minister of Finance to explain

(i) the measures the ministry is taking to cushion people in the South Western parts of the country against cross rating which has caused massive suffering to our citizens; and

(ii) the measures that have been put in place to contain incidents of smuggling of goods into the country as this practice has seriously affected the viability of our local industries resulting in a lot of companies failing to pay their workers' salaries in time.

THE MINISTER OF FINANCE (MR. BITI): (i) It is evident that a number of businesses, not only in the Southern and Western parts of the country, are applying illegal black market cross exchange rates in transacting. Legal cross exchange rates, are those normally displayed by banks and should be applied by all other traders in transactions. However, lack of supervisory capacity with regulators allows these illegal practices to continue at the disadvantages of ordinary Zimbabweans. I shall therefore, be making a statement on enhancing supervision capacity measures to ensure compliance with the law by all businesses in my 2011 Mid Year Fiscal Policy Review, and this will be complemented by detailed measures by the RBZ in the 2011, Mid Year Monetary Policy Statement to be released shortly this July 2011.

(ii) Measures that have been put in place to contain incidences of smuggling of goods into the country:

Introduction - The smuggling of goods into the country has over the past decade taken various forms that include use of travellers' rebate to clear commercial consignments, use of pseudo certificates of origin, transit fraud, smuggling of dutiable goods through border posts and undesignated points, and bribery of Zimbabwe Revenue Authority (ZIMRA) Customs officials. Treasury has thus, been proactive in putting in place measures that curb rampant smuggling of goods into the country.

Electronic Cargo Tracking System - A significant volume of transit cargo is often diverted and offloaded onto the local market. In order to curb smuggling of goods through transit fraud, the Government is in the process of introducing advanced enforcement methods such as an electronic cargo tracking system that uses electronic seals and transmitters to monitor transit cargo.

The implementation of the Electronic Cargo Tracking System that was earmarked for 1 April, 2010, though has, however, been delayed due to challenges in rolling out the necessary infrastructure that links ports of entry and exit, work is in progress for its implementation. Once implemented, smuggling of goods through transit fraud will be averted.

Post Clearance Audits - ZIMRA, coupled with border and highway patrols will set up a risk-based Post Clearance Audit Unit.

Installation of Scanners at Border Posts - There has been an increase in cargo passing through border posts due to the deepening of regional trade. The increase in the volume of cargo which is physically examined however causes congestion at the border post, thus creating a conducive environment for smuggling and other corrupt practices. In order to curb fraud and also expeditiously clear cargo, efforts are being made to install scanners at border posts throughout the country.

Forfeiture of Motor Vehicles Used in Smuggling - Smuggling in most cases, involves vehicle owners, drivers, ZIMRA Customs officials and clearing agents. In order to reduce incidences of smuggling, effective from 1 August 2009, any motor vehicle used by an individual or company in such malpractices is liable to forfeiture in the event that the same vehicle is used to commit a similar offense.

Licensing of Clearing Agencies - Some shipping and forwarding agencies have been engaging in smuggling of goods into the country even under circumstances where clients would have availed adequate funds for payment of customs duty. The agencies, then divert the paid customs duty to their own use.

In order to combat these highly deplorable corrupt activities the Government, through the Zimbabwe Revenue Authority and Shipping and Forwarding Agents has put in place stringent requirements when licencing potential clearing agencies.

Scheduling of Bus Arrivals - In order to ease congestion at ports of entry, which are a breeding ground for smuggling, scheduling of bus arrivals is being implemented starting with Beitbridge border post.

Separation of Commercial and Passenger Cargo - Informal traders often use buses to transport commercial consignments. Customs clearance of these consignments which are normally huge, take considerably much longer times to clear.

In order to reduced smuggling of goods, currently, work is in progress to separate commercial and passenger cargo.

Stringent Penalties - In order to nip smuggling of goods in bud, stiffer penalties on prosecuted corrupt officials and taxpayers, and all those found to be aiding corrupt practices have been put in place. The penalties provide for minimum mandatory imprisonment term of two years without the option of a fine. Furthermore, efforts are currently being made to increase and monitor ZIMRA staff through periodic accounting for accumulated assets.

Duty reduction - High levels of customs duty are an incentive to smuggling. In order to foster voluntary customs compliance, and discourage rent seeking activities, customs duty has been progressively reduced on raw materials, intermediate, capital and finished goods. The downward review of customs duty rates, especially on finished goods that the local industry has no capacity to produce is an incentive especially for the informal traders to use designated ports, thereby not risk their lives by smuggling goods through undesignated points such as crocodile infested rivers and land-mine fields.

Whistle Blowing - In a bid to curb smuggling of cargo, Government revived the whistle blowing system following the adoption of the multi-currency regime. Under the system, whistle blowers are rewarded 10% of the value of the goods that are recovered. The system, to date, has greatly assisted in recovering smuggled goods, and a good case was the busting of a syndicate that imported motor vehicles using fake Customs Clearance Certificates.

Conclusion - Addressing infrastructural bottlenecks which include physical buildings and network connectivity and strengthening customs administration through specialization are vital steps that should be taken in order to reduce congestion and fraud at ports of entry. Contractors are already on site at Beitbridge to face-lift the border post in order to reduce congestion.


24. MS. MANGAMI asked the Minister of Industry and Commerce to state the ministry's policy regarding retailers who do not give consumers cash for change but opt to give items like sweets and biscuits when coins are said to be in abundance in banks.

THE MINISTER OF INDUSTRY AND COMMERCE (PROF. NCUBE): I would like to thank the Hon. Mangami for the question. May I from the onset clearly state that the ministry's policy is that customers should not be short-charged by being forced to buy unbudgeted items due to shortage of coins. The retailers should give customers appropriate change instead of sweets and other small items.

As hon. members of the House might be aware, is has been established that banks used to hold South African coins worth between ZAR8-9 million, but retailers were reluctant to take up the coins. Thus, the Ministry convened a meeting with Retailers Association of Zimbabwe (RAZ) and Bankers Association of Zimbabwe (BAZ) to try and find a solution to this problem.

At the meeting BAZ indicated that banks have all along been accepting deposits of coins at the ruling exchange rate hoping that retailers, the transacting public and other traders will withdraw these coins for use as small change.

However, no withdrawals have been forthcoming resulting in continuous accumulation of coins in banks. Retailers are reluctant to take up the coins thereby short changing customers through buying unbudgeted items. This situation forced banks to consider repatriating the underutilized coins back to South Africa.

RAZ highlighted that the US Dollar is the anchor currency of the economy and using coins of other currencies will involve the extensive use of fluctuating exchange rates which has its own problem. Although the shortage of small change is a national problem, we have been urging retailers to lead in collecting coins from banks and give change to their customers.

As hon. members of the House might also be aware, the issue of coins does not fall directly under my ministry's purview but that of Ministry of Finance, and we understand that the Ministry of Finance is in talks with Federal Reserve of the United States of America for the supply of coins which will go a long way in addressing the problem of fluctuating exchange rates.

Banks have backtracked on their earlier decision to return R8 million worth of South African Rand coins, saying this was costly. The coins were supposed to be sent back after retailers and other businesses claimed banks were unfairly pricing the coin. Bankers Association of Zimbabwe president Mr. John Mushayavanhu said banks have to adapt to the retailers' pace of buying coins.



25 THE MINISTER OF INDUSTRY AND COMMERCE: I thank the Hon. Member for the question he posed on the "Directorship" of Kwekwe based Orica Dyno Nobel, which is reported to be sabotaging the economic activities of the mining sector as well as short changing its employees on remunerations and to state whether this company is properly registered with the Registrar of Companies.

Allow me to give you a chronicle of evens which happened on the ownership of Dyno Nobel Zimbabwe (Private) Limited. The company was founded in 1990 as a technology transfer venture between the Swedish and the government of Zimbabwe through the Industrial Development Corporation (IDC).

It was then sold to the Australian group, Orica, who acquired 78% of the shares, leaving 22% to the locals. In 2007, Orica then sold its shares (78%) to local investors who owned 22%. The directors of Dyno Nobel Zimbabwe (Private) Limited, now known as GML Explosive (Private) Limited, are as follows:

Friedbert Lutz - German

Clement Munjodzi Ruzengwe - Zimbabwean

Misheck Samson Kachere - Zimbabwean

Cornelius Rwaapano Maradza Zimbabwean

Middleton Nyoni Zimbabwean

Aleck Kabo Zimbabwean

Lackson Tamungwa Gono Zimbabwean (General Manager)

GML Explosive (Private Limited, once applied for distressed funds of between US$600 000, US$1 000 000 in 2009. However, by 2010, the Infrastructure Development Bank of Zimbabwe (IDBZ) could not lend the company as it had run out of funds.

I would like to advise hon. members that from the investigations carried out by officials from the ministry, there is no evidence that the company is sabotaging the economic activities of the mining sector as well as short-changing its workers on remuneration. Behind the scenes inquiries at the company and elsewhere revealed that the workers were worried about the sustainability of the company rather than wages. Lack of raw materials to produce explosives is the major challenge currently being faced by the company and, therefore, most of its customers are now importing the explosive products from South Africa. Further investigations with the Registrar of Companies indicate that the company is fully registered with the Registrar of Companies.


MR. MUDIWA asked the Minister of Labour and Social Welfare to state the government's policy on ensuring that local people in the Chiadzwa mining community are employed first by the companies mining diamonds in the area.

THE MINISTER OF LABOUR AND SOCIAL SERVICES (MS . MPARIWA): Hon. Speaker, hon. members, I would like to take this opportunity to address the question raised by Hon. Mudiwa. I wish to inform the House that the Ministry of Labour and Social Services does not have a Chiadzwa specific employment policy, but an all encompassing policy. Our mandate is to ensure fair employment practices and equal employment opportunities in the labour market in order to contribute to the social and economic development of Zimbabwe. Mr. Speaker, we make referrals of job seekers to potential employers including Mining Companies only at the request of the employers. In cases where companies choose not to recruit through us; our duty would be to guard against contraventions in their recruitment procedures as provided for by the Labour Act.

Nevertheless hon. members, it remains mandatory for government departments to recruit through my ministry. The general policy for recruitment and placement is such that, job seekers shall access services subject to registering first with their nearest public employment office.

Equal opportunity is granted to every job seeker regardless of geographical location and origin to ensure fairness. Special arrangements nevertheless are considered for vulnerable categories of job seekers, such as people with disabilities. My ministry remains a strong advocate for free and fair employment and the empowerment of the generality of Zimbabwean people to be the first to benefit from resources endowments and economic activities in their country.

In an effort to draw closer attention to the human resources base in the Chiadzwa area, my Mutare Employment Office carried out job canvassing activities to four of the five mining companies in the Chiadzwa area. The companies were encouraged to recruit through us and appreciate the benefits that come with it. Prospects of job notifications to my Mutare Office were high. It however remains my Ministry's mandate to redress any grievances put forward to us by any affected persons for the purpose of achieving and maintaining free, full and fair employment. With these few remarks, I want to thank Hon. Mudiwa for asking such an important question. I thank you.


MR. CHEBUNDO asked the Minister of Labour and Social Services to inform the House on what action the Ministry is taking to address the welfare of workers on the following Kwekwe based companies who go for months without salaries.

1. Dyno Orica (Nobel

2. Lancashire Steel

3. CARSLONE (Chaka Plant)

THE MINISTER OF LABOUR AND SOCIAL SERVICES (MS . MPARIWA): Mr. Speaker Sir, on Dyno Orica (Nobel), the workers approached the NEC (National Employment Council) for the Chemicals and Fertilizers Manufacturing Industry with the issue of non-payment of wages and underpayment of wages. The case was conciliated and remained unresolved. The case was then referred to arbitration. An award was issued. The employer appealed against the award to the Labour Court where the case is pending as of now. It is true that the employer has been granted stay of execution against the award pending finalization of the case by the Labour Court. Hon. members, I therefore urge parties to await the decision of the Labour Court.

On Lancashire Steel Limited, hon. members, in 2009, the employees filed a complaint of non-payment of wages. The case was conciliated then referred to arbitration. The arbitrator's award ordered the company to pay workers their outstanding wages. Due to financial incapacity, the company failed to honour the award. Hon. members, we understand an agreement has been signed with the new investor - ESSAR Africa) who has undertaken to pay all outstanding wages at ZISCO Steel including Lancashire Steel. It is our hope that the investment agreement at ZISCO Steel which is so important to the economy will succeed.

On Carslone Chaka Plant, Carslone Enterprises Workers" Committee lodged a complaint to our offices of non-payment of wages as from may 2010 to September 2010. Our office investigated the case and through our efforts parties signed an agreement over payment of wages. However, the employer did not honour the agreement. Arbitration was carried out and an award was issued ordering Carslone to pay the outstanding wages. The award is awaiting enforcement by the workers.

MR. CHEBUNDO: Just to get to know from the minister, what action her Ministry then takes to ensure that those arbitrations and other awards are then implemented because it seems nothing is actually happening since the arbitration has been on hold a long time ago?

MS. MPARIWA: Thank you Madam Speaker. I think I have mentioned on three levels of arbitration in terms of the three companies because there are three different companies. I think we also wait because the other one is at the Labour Court level and the other one just await the trust that the one that have taken over the companies with the promise of wanting to clear the backlog in terms of wages that are pending for the workers. We hope and trust that they will just honour their promises in terms of what they have agreed with the workers. We intend to be pushing but I think their process is that we wait for that to happen first. Should there be any problems, then we will make a follow-up. I thank you.


18. MR. CHEBUNDO asked the Minister of Labour and Social Services why it has taken long to finalise the case between ZIMASCO Kwekwe Division and the suspended Workers' Committee representatives and 23 Union members over a year ago.

MS. MPARIWA: Mr. Speaker Sir, the ZIMASCO workers' case was first handled internally as per their company code of conduct. The internal disciplinary proceedings led to the dismissal decision.

The aggrieved workers then appealed to the Labour Court which dismissed the workers' appeal. Hon. member, I would also want to inform the House that the employees have since been granted leave to appeal to the Supreme Court. Parties are therefore urged to await the ruling of the Supreme Court.


33. MS. SHIRICHENA asked the Minister of Labour and Social Services to inform the House what government plans have been put in place to alleviate the plight of the starving population, especially the orphans and elderly in drought prone areas of the southern part of the country.

MS. MPARIWA: Thank you MadamSpeaker, the question that has been raised by hon. Shirichena is to inform the House what government plans have been in place to alleviate the plight of starvation. Starving population especially orphans and vulnerable children and the elderly in drought prone areas of the Southern part of the country, I think members may recall, I remarked during oral answers to questions that this question always arise. I did give a response but I did not respond to the southern part of it because we realised that as a country, we have various other parts of the country that have also been affected. Also, the elderly and people with disabilities are all over the country in Zimbabwe. It will be unfair for us to concentrate on one constituency or one part of the region leaving the others. As a government, we work on national programmes that encompass everybody.

Government is committed to the welfare of its citizens and has put in place a number of programmes to alleviate the plight of vulnerable people. The following are major programmes that are being run by my ministry.

Food deficit mitigation programme

Government has approved a food deficit mitigation programme to assist households cope with the effects of the recent drought. This programme has two main components which are:

a) Free food/cash distribution to the elderly, persons with disabilities, child headed households as well as other households that are labour constrained. Government plans to support 164 324 households per month through this programme. Benefiting households will be given vouchers to purchase grain from GMB at ward distribution points and an additional US$10 cash to meet other requirements such as milling and cooking oil.

b) The second component is the food for work. Through this programme component, government supports households that have been affected by the drought, but have surplus labour by providing temporary work for these households. Benefiting households will be required to work on community projects for a 15 day working month and receive US$20. A cumulative total of 270 998 households will be supported through this component at the peak of food insecurity, that is between January and March 2012. Donor food pipeline normally starts moving in October every year. My ministry projects that from October, donors will be able to complement government efforts and meet 50% of the food requirements countrywide.

Treasury allocated US$3 million to support the food deficit mitigation programme in the 2011 budget. Already, Treasury has released US$600 000 to support the programme. The first batch of 18 districts with 42 280 households will be supported this month. More resources have been promised by Treasury towards the end of this month.

Harmonised Social Cash Transfers Programme

Another programme that my ministry is running is the Harmonised Social Cash Transfer programme. This programme was designed to support the poorest 10% of the population with a monthly cash allowance. These households will receive between US$15 and US$25 per month depending on the size of the household. For 2011, the programme is targeted at assisting 24 000 households in 10 poorest districts as identified by the Zimbabwe Vulnerability Assessments as well as the 2010 Nutrition Survey among other data sources. The programme will be expanded in the coming years to reach a target of 250 000 households countrywide by 2015. For this programme, Treasury allocated US$6 million. An additioinal US$6 million has been pledged by the donors. It is important to note that in all other districts that are not covered by this programme, the public assistance programme will continue.

The social cash transfer programme will be complemented by other programmes such as school fees payments through BEAM, as well as health assistance through the assisted medical treatment orders and agricultural input scheme. This is so because the monthly allowance may not be able to cover all household requirements.

Support to the elderly and persons with disabilities.

Other key programmes that are aimed at supporting vulnerable people include those that target specific groups of people such as the elderly and persons with disabilities. Apart from the cash transfer and food deficit mitigation programme, my ministry supports institutions caring for the elderly, persons with disabilities and orphans and other vulnerable children with block grants as well as per capita grants. More so, persons with disabilities receive support to access assister devices such as wheel chairs and hearing aids. A disability loan revolving fund was also set up to support persons with disabilities to start income generating projects.

Health Assistance.

Lastly, my ministry provides health assistance to indigent persons in order to improve access to heath services. For the 2011 fiscal year, my ministry targets to reach out to 24 000 people with Assisted Medical Treatment Orders (AMTOs). This programme is also very important as it prevents households from engaging in unfavourable coping mechanisms and unlocks resources that could have otherwise be used for medication to other productive needs.


34. MR. CHIMHINI asked the Minister of National Housing and Social Amenities to inform the House, what the ministry's policy is with regard to the occupation of government accommodation by civil servants and to give a breakdown of former civil servants who are still occupying government accommodation.

THE MINISTER OF NATIONAL HOUSING AND SOCIAL AMENITIES (MR MUTSEKWA) : Mr Speaker Sir, before I respond to Hon. Chimhini's question, it is vital that I explain for the benefit of the hon. members and indeed the nation what we mean by government houses. Government houses are G.P. Houses. G.P. stands for Government properties. These are exchequer properties that are financed with funds appropriated by Parliament for the purpose. G.P. houses are allocated to civil servants drawn from the civil service housing waiting list maintained by the Ministry of National Housing and Social Amenities. Allottees of civil service housing are given a 3 month notice to vacate when they retire or resign from the civil service.

In addition to G.P. houses, there are National Housing Fund (NHF) houses and Housing and Guarantee Fund (NGF) houses. These are statutory funds administered by the Ministry of National Housing and Social Amenities. The NHF provides funding for the construction of houses for the nation. The houses are allocated on sale to all citizens of Zimbabwe. The HGF guarantees both civil servants and non civil servants to obtain housing finance from financial banks, mostly building societies. Currently the HGF is dormant as building societies have not started advancing loans to home seekers. The National Housing Fund which used to be the greatest instrument of providing affordable housing to the Zimbabwean people is grossly under capitalised due to the past economic challenges. There is need to recapitalise the fund for sustainable housing development.

Hon. Chimhini would however want to know how many former civil servants are still occupying Government housing. The figure is very negligible and efforts are being made to evict the remaining former civil servants through the courts. Out of a total of 6 341 Government houses, only 65 are occupied by former civil servants as shown below.








Matabeleland North


Matabeleland South




Mashonaland West


Mashonaland East




Mashonaland Central







The above points at the need to come up with a comprehensive civil servants housing policy that will assure them of a security of tenure when they resign or retire from Government service. This is the thrust of the ministry to come up with both rental and home ownership programmes for civil servants.

MR. F.M. SIBANDA: What makes civil servants to refuse to move out of the houses amicably? Do they sign a contract that says that they will end up buying the houses? Why go to the courts in order to evict them?

MR. MUTSEKWA: I would like to thank the questioner for that question which I think is pertinent. The reasons behind civil servants taking their time to vacate government accommodation is purely a social issue. These are houses that the civil servants have occupied probably for the rest of their serving time as civil servants. In some cases, these houses have been left to dependents of those civil servants who might have retired from civil service. It is therefore only normal that when you try to evict a person from the accommodation that he has had for the rest of his working life, he is used to it and therefore there is bound to be resistance. This is why we have to go to courts in some instances. As I have said in my first response, it is also the plight of civil servants that we must also address as a government and indeed as my ministry. We must ensure that civil servants after their genuine and tireless service to the Government, when they are due to retire or when they retire, they must be accommodated elsewhere. I can assure you, my ministry is working towards achieving that.

Questions with Notice interrupted by THE DEPUTY SPEAKER in terms of Standing Order No. 33.



THE MINISTER OF CONSTITUTIONAL AND PARLIAMENTARY AFFAIRS: I move that Orders of the Day Nos. 1 to 5 be stood over until Order No. 6 has been disposed of.

Motion put and agreed to.



MR. CHINDORI CHININGA: Mr. Speaker, I move the motion standing in my name;

That this House takes note of the First Report of the Portfolio Committee on Mines and Energy on the state of affairs at Shabani-Mashava Mines.

MR. MUNENGAMI : I second.

MR. CHINDORI CHININGA: Mr. Speaker, the report of the Portfolio Committee on Mines and Energy on the state of affairs on Shabani Mashava mines.

Terms of reference of Portfolio Committees -Standing Order No.160

"Subject to these Standing Orders a Portfolio Committee shall:

a) consider and deal with all bills and statutory instruments or other matters which are referred to it by or under a resolution of the House or by the Speaker;

(b) consider or deal with an appropriation or money bill or any aspect of an appropriation or money bill referred to it by these Standing Orders or by or under resolution of this House; and

monitor, investigate, inquire into and make recommendations relating to any aspect of the legislative programme, budget, policy or any other matter it may consider relevant to the government department falling within the category of affairs assigned to it, and may for that purpose consult and liaise with such department;

Consider or deal with all international treaties, conventions and agreements relevant to it, which are from time to time negotiated, entered into or agreed upon


The Portfolio Committee on Mines and Energy, in accordance with Standing Order Number 160, has conducted a thorough inquiry into the challenges bedeviling Shabani-Mashava Mines ("SMM"); the only sole producer of chrysolite fibre in Africa. The enquiry led to stark revelations of a sudden slump in production of asbestos since the placement of SMM under reconstruction on 6 September 2004, as well as tragic stories of poverty stricken workers struggling to survive from the crisis created by the non-performance of the mines. The Committee observed that at the center of this quagmire are allegations of externalization that were leveled against the controlling shareholder of SMM and related companies, Mr. Mutumwa Mawere, which then led the government to take certain measures including specifying Mr. Mawere, SMM and related companies in terms of Section 6(1) of the Prevention of Corruption Act ("PCA") in July and August 2004, respectively. Pursuant to allegations that Mr. Mawere had played a hand in the non-remittance of foreign currency proceeds to SMM, a reconstruction order was promulgated in terms of Presidential Powers (Temporary Measures) against SMM and related companies on the premise that the companies were indebted to the state. The administration of both the Prevention of Corruption Act (PCA) and the Reconstruction of State Indebted and Insolvent Companies Act (Reconstruction Laws) and regulations was under the control of the Minister of Justice, Legal and Parliamentary Affairs.

An application for Mr. Mawere's extradition was made in South Africa in May 2004. The application was dismissed by South African magistrate court in June 2004.

Mr. Mawere was specified on 9 July 2004. The Minister of Justice, Legal and Parliamentary Affairs appointed Assistant Commissioner S. Mangoma, on 13 August 2004 as Investigator into the affairs of Mr. Mawere.

On 26 August 2004, SMM and related companies deemed to be under the control of Mr. Mawere were specified. Mr. Francis Reginald Saruchera was appointed Investigator of SMM and related companies on the same day by the Minister.

On 3 September 2004, the Minister of Justice, Legal and Parliamentary Affairs, Hon. Chinamasa, gazetted a statutory instrument permitting the placement of SMM under reconstruction without the involvement of the courts.

On 6 September 2004, the Minister appointed Mr. Gwaradzimba as Administrator and he proceeded to dissolve the board of SMM and assume control and management of SMM.

In terms of the operation of the Prevention of Corruption Act (PCA), Mr. Mawere was legally disabled from assuming the control and management of SMM without the permission of the Investigator. In addition, the control of Mr. Mawere's companies was then placed under the control of an Administrator in terms of the operation of the Reconstruction Laws without the involvement of the Investigators.

Before Mr. Saruchera could begin his work, SMM was placed under reconstruction. There is no indication of coordination between the investigators under the Prevention of Corruption Act and the Administrator under the Reconstruction of State Indebted and Insolvent Companies Act (Reconstruction Laws) during the time they were both administered by the Minister of Justice, Legal and Parliamentary Affairs and more serious when the Prevention of Corruption Act was re-assigned to the co-Minister of Home Affairs.

Mr. Mawere was de-specified on 19 May 2010 only when the responsibility for administering the PCA was changed to the Ministry of Home Affairs.

2. Background Information

Shabani and Gaths mines are part of SMM Holdings and during their heydays were ranked the 6th largest producer of Chrysolite fibre in the world. At full capacity the mines can contribute about 10% of the country's foreign currency revenues, employing about 4 000 people and it is estimated that about 60 000 people in and around Mashava and Zvishavane towns benefit directly or indirectly from the two mines. Gaths mine started operating in 1908, followed by Shabani mine in 1914, and currently the mines have large ore reserves with a lifespan of 25 years at a production of about 180,000 metric tones per annum. Historically, the two mines have contributed significantly to the socio-economic development of Mashava-Zvishavane towns as well as to the nation. In view of the large reserves and demand for the resource globally, the two mines still have an important role to play in the development of this country.

3. Methodology

In an endeavor to understand the causes leading to the closure of the mines in 2010, the Committee had an opportunity to meet all the key stakeholders. These interactions varied from site visits to the mines, public hearings with affected communities of Zvishavane and Mashava towns and also through Committee meetings at Parliament building. The key stakeholders into this enquiry included, the then Minister of Justice, Legal and Parliamentary Affairs, Hon P. Chinamasa; Mr. Mutumwa Mawere, Mr. A Gwaradzimba, (the Administrator); Management team of African Associate Mines (AA Mines); the Permanent Secretary of Home Affairs, (Mr. Matshiya); Governor of Reserve Bank of Zimbabwe, (Dr Gideon Gono); and the workers of both Gaths and Shabani Mines and their labor structures. The Committee made a site visit to Shabani Mine in 2010. Later, in 2011 the Committee held 2 public hearings which were attended by about 2 500 people that included the workers, business community, local authorities, provincial political leadership from political parties in the GNU and members of civic society.

The data gathering process was not without its challenges. Firstly, the management team of AA Mines refused to attend the public hearings that were conducted by the Committee despite the fact that they were given an official invitation and a Parliamentary secretariat advance team went on site to make public hearing arrangement with AA Mines officials, the workers and local authorities. Secondly, with respect to the question of ownership, Hon. Chinamasa made the submission that the control of SMM's parent company registered in the United Kingdom, SMM Holdings Limited ("SMMH) was vested with AMG Global Nominees Private Limited ("AMG"), a company that was used as a nominee by the government to acquire the claims held by T & N Plc as security pursuant to the original acquisition transaction concluded with Mr. Mutumwa Mawere.

Hon. Chinamasa submitted that AMG acquired the entire shareholding in SMMH and then diluted its stake to 24% in lieu of the injection made by the Reserve Bank into SMM Zimbabwe, after the placement of the company under reconstruction. Accordingly, the ownership of SMM Holding Limited (registered in the U.K) as represented by Hon. Chinamasa is as follows: AMG - 24% and Nickdale Investments Private Limited, a nominee of the government, - 76%.

However, according to Mr. Mawere, the ownership of SMMH (registered in the U K) is as it was before the placement of SMM Zimbabwe under reconstruction. SMMH (U.K) ordinary shares are held by a company, Africa Construction Limited ("ACL") registered in the United Kingdom, that is beneficially owned by Africa Resources Limited ("ARL"), a company that is in turn wholly owned by Mr. Mawere (see Annex A).

The Committee was presented with judgments handed down in the United Kingdom dismissing the application by AMG Global Nominee Private Limited to be registered as a shareholder of SMMH. In addition, a copy of letters from AMG Global United Kingdom attorneys undertaking to surrender the bearer share warrants to the order of T & N Plc was presented to the Committee (see Annex B)

Hon. Chinamasa who had made the representation that Mr. Mawere is not a shareholder of SMMH (United Kingdom), made an undertaking to provide the Committee with copies of the bearer share warrants that he said were in the possession of the government but up to this day the Committee has not had sight of the copies. The Committee resolved to write to the Minister of Justice reminding him that he made a commitment under oath to present to the Committee on Mines and Energy, the share bearer warrants. Three letters signed by the Clerk of Parliament were delivered to the Minister and signed for but there has not been any response to date. The letter requested information on the following:

Copy of Bearer Warrant Certificates relating to SMM Holdings Private Limited and THZ Holdings Limited Shares.

Copy of a Special Report presented to the Minister of Justice and Legal Affairs on the Reconstruction of SMM Holdings by Mr. A Gwaradzimba, State appointed administrator for SMM Holdings.

A breakdown of legal costs that the government has incurred on its legal battles with Mr. Mawere in Zambia, South Africa, UK and other places.

The first letter was written on the 28th of January 2011, the second letter on the 24th February 2011 and the final letter on the 18 th of March 2011 (see annex T)

Thirdly, through interactions with the Administrator, it emerged that he tried in vain on several occasions to cast aspersions on the Committee's work, on the grounds that the enquiry was scaring away potential international investors.

4. Findings

4.1 Operational Performance of AA Mines

Currently, the two mines are not producing anything and the downturn in production as per table started in 2004, improved in 2005 and started to seriously decline leading to closure toward 2008 up to its final closure up to date, during the Reconstruction period. Below is a eleven year annual production chart in tons depicted in Table 1.

Annual Production Chart (tons)


Period199920002001200220032004200520062007200820092010Gaths53 66377 95772 90476 11678 32955 42363 67553 37350 9782 0851 356oShabani61 13973 88768 38667 87278 59549 04658 36048 04833 79410 0386 451oTable 1

Source: Management Reports of AA Mines

The mines last realised near full capacity before 2003. The slump in production has largely been attributed to the lack of re-capitalization before reconstruction and more seriously during the reconstruction period. As a result, there has neither been the replacement of aging plant and equipment nor the purchase of spares and other consumables. The situation was also worsened by the resignation of skilled managerial and technical employees at the commencement of reconstruction and during the reconstruction phase.

In one of the site visits, the Committee observed that the mines had become desolated and ghastly looking. The only functioning departments were the hospital and the Mine Golf course and Club. In the underground shaft a lot of equipment had been cannibalised to repair other equipment and the remaining submerged in water and there was inadequate power and machinery for de-watering the mines. ZESA had disconnected power due to non-payment of bills. After negotiations, limited power was provided only for de-watering and not for production. In the midst of this quagmire, the Committee was informed that the company was sitting on book orders of 200 000 tons of asbestos worth US$105 million coming from the Asian market.

At the same time the Committee also found it tragic that the country has now been forced to import asbestos fiber from Eastern Europe and South America (Russia, Brazil and Kazakhstan) because of this crisis.

The position of the Committee is that it is not right for this developmental resource of such importance to become more of curse rather than a blessing for the people of Zimbabwe while the dispute regarding the future and ownership of the company rages on.


4.2 Ownership Wrangle

The Committee observed that the major hurdle in the resuscitation of the two mines lay in resolving the issue of control and ownership of SMM Holdings (United Kingdom) which owns SMM Zimbabwe. Mr. Mawere claims that through his company Africa Resources Limited (ARL), is the beneficial shareholder of Africa Resources Limited (ARL) as reflected in the records of SMM Holding United Kingdom parent company kept at the Companies House (Registrar of Companies) in the United Kingdom (see Annex A)

Africa Resources Limited (ARL) acquired the control of SMM Holding (United Kingdom) pursuant to a Sale and Purchase Agreement concluded with T & N Plc (United Kingdom) in March 1996 (see Annex C). Under the vendor purchase payment arrangement agreed between the parties, Africa Resources Limited (ARL) had an obligation to procure the payment of US$60 million payable over a 13 month period from the export proceeds of SMM Zimbabwe. At the time SMM Zimbabwe and associated companies were placed under reconstruction, T & N (United Kingdom) had been paid US$37 million in reduction of the purchase price leaving a balance of US$23 million. AMG's Global main contention in the United Kingdom litigation was that Africa Resource Limited (ARL) had defaulted in its payment obligations to T & N (United Kingdom). The finding of the United Kingdom courts was that Africa Resources Limited (ARL) had not defaulted as alleged. The United Kingdom court ordered that the bearer share warrants that were delivered to AMG Global by T & N (United Kingdom) should be returned to T & N (United Kingdom) (see Annex B). As such, the bearer share warrants should be in the possession of T & N (United Kingdom). Africa Construction Limited (United Kingdom) (ACL) is the holder of the entire ordinary shares in SMM holding (United Kingdom) in turn Africa Construction Limited is owned by Africa Resources Limited.

The Government represented by the Minister of Justice, Hon. P. Chinamasa, told the Committee that SMM Holdings (United kingdom) is owned 100 % by government, made up of 76% of shares which were State loans converted into equity and "24% through the agreement that we crafted with T & N who had canceled their agreement with Mr. Mawere" [1] .

To the extent that the Minister of Justice, Hon. Chinamasa's claiming ownership of SMM Holdings (United Kingdom), he has the burden of proof to show that this is the case notwithstanding the fact that the very same issue as to who was the rightful owner of SMM Holding (United Kingdom) was the subject of dispute in the United Kingdom Courts. The High Court in the United Kingdom ruled that Africa Resources Limited (ARL) was the rightful owner of SMM Holding (United Kingdom) (see Annex B). AMG Global appealed but the appeal was dismissed. This means that the issue of ownership was resolved in United Kingdom court of law (where the companies are domiciled) in which the government was represented through AMG Global and Mr. Mawere through Africa Resources Limited (ARL).

No dispute should, therefore, exists as to who is the shareholder of SMM Holding (United Kingdom). The shares (both ordinary shares and bearer share warrant) in question are legally held in companies domiciled in the United Kingdom and not in Zimbabwe. The companies domiciled in Zimbabwe are SMMZ, AAM and associated companies whose principal shareholder is Mr. Mutumwa Mawere through companies domiciled in the United Kingdom, SMMH and Africa Construction Limited which is turn owned by Africa Resources Limited.

With respect to bearer share warrants, the United Kingdom Court ordered that AMG Global should give them back to T & N. In terms of the United Kingdom Court order submitted to the Committee by Mr. Mawere (Annex B) Africa Resources Limited is the rightful owner of SMM Holding (United Kingdom). This is in terms of paragraph 8 of the order. AMG through its United Kingdom lawyers made an undertaking pursuant to the Court Order to surrender the original bearer share warrants to the order of T & N. Accordingly the bearer share warrants according to court order should not be in the possession of either AMG Global or the government after the conclusion of the United Kingdom litigation.

It emerged during the Committee hearings that AMG Global paid US$2 million for the bearer share warrants. The funds were provided by the Reserve Bank of Zimbabwe. However, Dr. Gideon Gono submitted that he had not seen the bearer share warrants. In the absence of bearer share warrants the Reserve Bank of Zimbabwe want the US$2 million refunded and this has not materialised.

The Committee established that bearer share warrants do not provide evidence of ownership rather the said share warrants were pledged by Africa Resources Limited (ARL) as security to the mortgagor. The bearer share warrants should now be in possession of T & N as ordered by Court and the status quo ante is supposed to be prevailing in respect of control and management of SMMH being vested in ARL.

4.3 Acquisition of SMM Holdings:

Both parties explained to the Committee how they got acquisition of SMM Holdings and subsequently AA Mines. These were their arguments:

Hon. P. Chinamasa's Arguments:

[2] Africa Resources signed the sales purchase agreement for the purchase of shares in SMMH, THZH and ACL in 1996 and at time of agreement/signing ARL and Mr. Mawere did not have the funding for the transaction with T & N ("the transaction"), and an arrangement had to be made between Mr. Mawere and T&N, with the concurrence of Government of Zimbabwe which underwrote the transaction, in terms of which arrangement SMMZ would make the payment of US$60 million to T&N on behalf of Africa Resources Limited. SMMZ paid, at the instigation of Mr. Mawere, US$5 million per month to T & N on behalf of Africa Resources Limited.

In contravention of the Companies Act (chapter 24.03) ('The Companies Act') section 58 (1) as with Section 73 (1) of the Companies Act provides that "It shall not be lawful for a company to give, whether directly or indirectly, and whether by means of a loan, guarantee, the provision of security or otherwise, any financial assistance for the purpose of or in connection with a purchase or subscription made or to be made by any person of or for any shares in the company or, where the company is a subsidiary company, in its holding company……..") SMMZ was then a subsidiary of SMMH and in terms of Section 58/73 of the Companies Act, SMMZ was prohibited from providing financial assistance to Africa Resources and Mr. Mawere. Therefore:

4.3.1 Mr. Mawere never invested any money into the mines and all the money that was invested into A A Mines came from the government, through guarantees. Therefore, Mr. Mawere never had any passion about the growth and development of the mines.

4.3.2 The Sale and Purchase agreement that Mr. Mawere signed with T & N (United Kingdom) was fraudulent because it violated section 73 of the Companies Act. This section highlights that it is unlawful to provide financial assistance for the purchase of any share from the cash flow of the company. In essence Mr. Mawere paid US$43 million to T & N (United Kingdom) from the cash flow of the company and not from the profits, in violation of the law. In the process this deprived the 2 mines of the much needed working capital to sustain and boost operations.

4.3.3 Mr. Mawere misled the seller (T & N) into believing that he would provide working capital for the operations of the mine. This was recorded in the company's Minutes of 1996. The Committee was shown a copy of the Minutes were Mr. Mawere stated that ' working capital of the order of US$25 million to US$30 million was expected to be injected into the company shortly to underpin operations". [3] The assumption was that Mr. Mawere would provide this money from his own resources. Instead Mr. Mawere began borrowing money and the SMM holdings, SMM Zimbabwe became 'over-borrowed'.

4.3.4 In the process government had to intervene to save the mines from collapsing by providing guarantees for loans. The first loan worth US$60 million was borrowed from KBC of the UK and channeled to SMM Holding through MMCZ in 1998. The second loan of US$18 million in 2001 to SMM Holding was also made possible through a government guarantee. Hon Chinamasa, told the Committee that the major part of the money borrowed by Mr. Mawere was never used to re-capitalise the two mines but was diverted and invested into his other subsidiary companies such as Steel-net.

4.3.5 Africa Resources Limited (ARL) owned by Mr. Mawere defaulted on its payments to T & N (United Kingdom) which had to be completed by the end of 1997. This was in violation of the contract (Sales and Purchase Agreement).

4.3.6 SMMZ was also granted a special dispensation for the marketing and exporting of asbestos (see Annex I). In 1997, SMMZ was allowed to receive the proceeds of export earnings without going through MMCZ. However, Mr. Mawere abused this facility through a company, which he formed known as Southern Asbestos Sales Limited (SAS), which acted as an agent/buyer of the asbestos. When SAS had " withheld or not remitted to Zimbabwe, US$18 464 071.27, ZAR 4 513 025.28, CAD 628 071.84 due to SMMZ [4] " the two mines started experiencing serious cash flow problems.

4.3.7 Due to serious cash flow problems, government took control of SMM Holdings in 2004. At the time of the takeover the two mines had an operational loss of US$18 million (See Annex Q). In order to prevent the company from being liquidated, government crafted the reconstruction laws in order to resuscitate the 2 mines. Mr Mawere was then specified and an investigator, Mr. Saruchera was appointed to investigate the causes leading to the cash flow problems at AA Mines.

4.3.8 In the investigator's report, Mr. Mawere was accused of externalizing about US$18 million, ZAR 4 million and CAD 600 thousand. At the same time SMM holdings owed the State ZW$115 billion in the form of direct advances, loans from RBZ and through debts to other arms of the government such from ZIMRA, ZESA, NSSA and MMCZ (see Annex P) . In the process the debts that were assumed by the state were later converted into equity amounting to 76% ownership.

4.3.9 The balance of the 24% was acquired by government after it paid US$2 million to T & N through AMG Global Nominees who hold ' the bearer warrants on behalf of GOZ" [5] .

Mr. Mutumwa Mawere's Arguments:

4.3.10 Africa Resources Limited ( ARL) wholly owned by Mr. Mawere signed a Sale and Purchase agreement with T & N in 1996 to purchase SMM Holdings and THZH for US$60 million. Of that amount US$43 million including interest has since been paid and there has never been any default in payments. There is still an outstanding balance of US$23 million which when fully paid will lead to full transference of ownership to Africa Resources Limited (ARL).

4.3.11 The payment mechanism was a private arrangement made between Africa Resources Limited (ARL) and T & N of United Kingdom. The agreement states that the purchase payments would be made from SMM's export proceeds. This was not in violation of any laws both in Zimbabwe and the UK. Accordingly, if there was any illegality the only aggrieved person would have been T & N who should have raised alarm and not the government. The matter was the subject of litigation wherein AMG Global argued that the payment mechanism violated Zimbabwe and United Kingdom laws. The United Kingdom Court ruled that the transaction in its construction and performance did not violate Zimbabwean and United Kingdom laws. In fact the court ruled that the payment mechanism complied with the provisions of the Zimbabwe laws. Mr. Mawere furnished the Committee with copies of the United Kingdom judgments dealing with the issue of financial assistance (See Annex C)

4.3.12 On government guarantees to purchase SMM Holdings - these were not meant for the purchase of SMM Holdings because the Sale and Purchase agreement had already been concluded in 1996. The government guarantees of 1998 and 2001, were meant to convert short-term loans to medium term facilities and subsequently to allow SMM to access working capital that was made available to exporters through various concessionary financing schemes and Productive Sector Facilities schemes put in place by the government and the Reserve Bank of Zimbabwe (see Annex H)

4.3.13 On the question of injecting working capital from own resources worth US$25 - US$30 million, " the seller knew that the money that was going to be injected was not going to be injected by me because if I had the money I would simply pay and we move on" [6] . The money for re-capitalising the mines was going to be borrowed from the local banks which had the backing of government guarantees. It was understood by all parties to the transactions that funds were to be borrowed by SMM hence the need to pass resolutions authorizing the company to increase its borrowing limits to US$60 million. The audited financial statements of SMM for 1996 and 1997 confirm that SMM was able to borrow the funds from local banks as expected (see Annexes D and E)

Mr. Mawere argued that the only person who has right of ownership is the one who is registered in the United Kingdom as the holder of ordinary shares in SMMH.

4.4 The Mines Under the Reconstruction Era:

When government assumed control of SMM Holdings in 2004, a lot of court battles ensued in the process between the Administrator and companies controlled by Mr. Mawere (See Annexes M, N and R). The court cases ranged from the specification of Mr. Mawere, to the challenge regarding the decision to place SMM under reconstruction, constitutionality of the Reconstruction Act to violations of the exchange control regulations. The Committee also observed that there were a lot of accusations and counter-accusations on the reasons why the mines were not getting any investors. The Committee was informed by the Administrator, Mr. Gwaradzimba, that about US$115 million is required to revive operations at the two mines of which US$78 million would be used to pay for liabilities. The Minister of Justice, Hon Chinamasa, told the Committee that the legal battles with Mr. Mawere, the negative press reports based o the 'Advisory Paper' issued by the Governor of the Reserve Bank of Zimbabwe to H. E. the President were " making it hard for the Administrator to secure commitment from potential investors..." [7] .

The Committee also noted with concern that the Administrator was also not without his faults in the management of these mines. During the enquiry, the Committee came across information relating to the application of the payments that were made in Zambia to the Administrator, Mr. Gwaradzimba, by TAP Building Products, a company registered in Zambia that was placed erroneously under reconstruction only to be removed after a court challenge by Africa Resources Limited the shareholder of the company (see Annex G). Evidence furnished to the Committee shows that Mr. Gwaradzimba using a Zambian company was a beneficiary of payments of about US$345,000. A total of about US$700,000 was paid by TAP on the instruction of Mr. Gwaradzimba to various parties including Mr. Manikai and other board members who received board fees from TAP a subsidiary company of SMM Holdings. The Governor of RBZ was unable to confirm to the Committee whether these payments were cleared under the Exchange control regulations applicable at that time (see Annex F).

In the same vein during the over 7 years of tenure that Mr. Gwaradzimba has been administrator there has not been much positive reconstruction of the mines casting a shadow of doubt on his credibility as the best person in reviving these two mines. At the same time, the administrator paid US$2 million to T & N (United Kingdom) for the purchase of Bearer Share Warrants, a case which government lost in United Kingdom courts. The money has not yet been recovered. The Committee believes that this money could have been used to pay the wages and salaries of the suffering workers at the two mines. These funds must be recovered to contribute to national development or priority needs.

4.5 Impact of the De-specification of Mr. Mawere:

The Committee observed that after the de-specification of Mr. Mawere no assets were returned to him. Mr. Mawere's argument is that he is entitled to get his assets back from the Investigators as provided for by the Prevention of Corruption Act while the Minister of Justice, Hon. Chinamasa's, line of defence was found in the Reconstruction of State Indebted and Insolvent Company Act (Reconstruction Law). Mr. Mawere's main line of argument was based on Section 10 (2) of the Anti-Corruption Act, which stipulates that the assets of a specified person should not be disposed of during specification and after de-specification should be returned to the owner. These arguments were being made in view of the fact that the Administrator had disposed some of the company's assets such as mining claims (see Annex K) and several subsidiary companies of SMM whilst Mr. Mawere was still under specification.

Hon P Chinamasa defended the Administrator's actions on the grounds that the Reconstruction Act gives the Administrator powers to dispose of any assets with the approval of the Minister for purposes of reconstructing the mines. At the same time Hon Chinamasa said "the Prevention of Corruption Act is not, by any form of imagination, superior to, nor does it have the effect of overriding, the Reconstruction Act" [8] The Committee's position is that one of the basic principles in law making is that there should be harmony between all laws. It is the Committee's considered position that the Prevention of Corruption Act is solely meant to allow for the State to investigate corruption and where finding of corruption is made the assets of a specified person can then be used to make good on the financial injury caused. The law is meant to protect both the specified and the state. Equally the Reconstruction Laws are meant to protect the State as a creditor and not infringe on any person's right to property. The question that emerges from the facts presented to the Committee is whether the Minister by invoking the Reconstruction Laws on the specified person, has abused the powers bestowed on him? Can the two laws operate simultaneously on the affairs and circumstances of the same person? Does the Reconstruction Act compliment and co- exist without conflict with other legal statutes and legislation that relate to legal recourse that government, parastals etc can take against companies and citizens to recover debts through the judiciary (Courts). Your Committee, Mr. Speaker, presents these challenges to you and recommends that the House review the law and advise accordingly.

4.6 State Indebtedness:

The Committee also observed with concern the selective and arbitrary application of the clause on state indebtedness. This was noted in Minister of Justice, Hon P Chinamasa's, response during the enquiry where he defined state indebtedness as 'anything owed by the mines to State companies and government. [9] .' Some of the companies listed as state companies, including RBZ, ZIMRA, ZESA,NSSA and MMCZ and yet these entities have legal powers to claim any debts without the State assistance. Hon Chinamasa, further highlighted that the debt owing to the State directly or indirectly by SMM and AA Mines was lumped together to achieve ' efficiency and effectiveness'.

A question then arises whether this was prudent decision on the part of the Executive. The Committee would not like to see or to support the selective and arbitrary application of the law. The concept of state indebtedness should be applied to all companies without discretion as currently there are many companies which owe money to these institutions (RBZ, ZIMRA, ZESA and MMCZ) but have not been placed under reconstruction. The Reconstruction of State Indebted and Insolvent Companies Act (Reconstruction Laws and regulations) if assigned to any authority with mischief can result in many of our farmers and many companies in mining, manufacturing, commerce who owe or are in debt to RBZ, ZIMRA,ZESA or NSSA being State indebtedness and being put under Reconstruction.

4.7 Conflicting Interests

The enquiry into Shabani-Mashava revealed that there was a conflict of interest in the appointment of Mr. Gwaradzimba as administrator and Mr. Manikai as the legal advisor on reconstruction of the mines. Mr. Gwaradzimba once worked at KPMG as an auditor and at one stage audited the Accounts books of SMM. He was working at KPMG and providing auditor services at the time when the alleged violations of the Companies Act in terms of payment to T & N for acquisitions were being made. Mr. Manikai who is the legal advisor for the Administrator and government on SMM once served as a Board Secretary for SMM in 1996 for a period. Both men have strong historical links with the AA mines, SMM, SMMH, Africa Resources Limited and Mr. Mawere.

At the same time the Committee observed a conflict of interest by the company AMG Global Nominees which sought to buy bearer share warrants from T & N of United Kingdom on behalf of the government. The company has strong links with the Administrator.

Mr. Gwaradzimba was working at KPMG the time when the alleged violations of the Companies Act in terms of payments to T & N for the acquisition. If any violations of the Companies Act as alleged took place, then Mr. Gwaradzimba (KPMG) should have been cited as co-Respondents for not qualifying the audited financial statements. On the same note Mr. Manikai was one of the transaction legal advisor to ARL in its acquisition of SMMH. It is now alleged that the payment mechanism for the acquisition by ARL violated the provisions of the Companies Act. If this was the case, Mr. Manikai ought to have rescued himself from acting as legal advisor to Mr. Gwaradzimba on allegations that involved a period in which he was acting for ARL and also on facts that he provided an opinion regarding legality. There is no evidence that Mr. Manikai ever raised an issue regarding the alleged violations at all material times. The Committee's position is that this is unprofessional and is not in line with best international practices.

4.8 Plight of Workers at AA Mines

The Committee had an opportunity to interact with the workers during the public hearings and the adage ' when two elephants fight the grass suffers' best describes their situation. The majority of the workers have gone for more than (two) 2 years without a salary and are struggling to meet their basic needs such as food, clothing and shelter. At the same time they have no access to clean water and electricity because of failure to pay their bills. Children have dropped out of school and the sick are struggling to get adequate health care. Domestic violence and moral decadence are the order of the day in the townships. Mine workers were placed on unpaid leave without fully adhering to labour laws such as application for exemption from appropriate labor authorities.

The situation has also been worsened by the acrimonious relations between the Administrator and Management on one hand and the workers on the other side. The workers told the Committee of harrowing stories of victimisation, unfair dismissals and other unfair labour practices. In 2010 the workers tried to air their grievances through a demonstration; riot police were called in leading to skirmishes and 4 workers sustained gunshot wounds.

Theirs is a story of struggle, pain and suffering where the workers feel they have lost their human dignity. However, the Committee noticed that they still have a glimmer of hope in that once government and Mr. Mawere agree to a final settlement and an investor is found their lives will change for the better. Currently the workers are owed about US$10 million by their employer (see Annex V)


4.9 Lack of Collective Responsibility by the Executive

During the enquiry, the Committee observed that there seems to be no collective responsibility between the Ministry of Home Affairs and the Ministry of Justice on the reasons leading to the de-specification of Mr. Mawere. The Minister of Justice, Hon Chinamasa, in his submission to the Committee showed that he doubted the validity of the reasons leading to the de-specification of Mr. Mawere. He states that 'I am not aware of the reasons why the Ministry of Home Affairs canceled the Specification Order in respect of Mr. Mawere,' taking into account the fact that the money that he externalised had not yet been recovered. The Minister of Justice, Hon Chinamasa, also highlighted to the Committee that under Section 10 of the Reconstruction Act, the Administrator had not cleared Mr. Mawere et al of culpability and the matter was still awaiting court judgment.

On the other hand the Committee was told by the Permanent Secretary of Home Affairs, Mr. Matshiya that before the de-specification of Mr. Mawere, they conducted thorough investigations both in South Africa and Zimbabwe with the assistance of Interpol. Consultations were also made with the key stakeholders such as the Administrator, RBZ and the Attorney General before the issuance of the de-specification order. The Permanent Secretary also confirmed that the Co-Ministers of Home Affairs consulted widely with appropriate authorities including the Minister of Justice although this is denied by Hon Chinamasa. The Committee is deeply concerned that three Ministers who sit in the same Cabinet have not been able to assume collective responsibility on a matter of such critical importance.

4.10 Opportunities for Resuscitation of AA Mines

Despite all these challenges, the Committee noted that there were a number of window of opportunities for the revival of A A mines. These include:

i. Mediator: The RBZ offered to mediate between the feuding parties. This offer was made on the basis of their experience and successes in resolving some of the challenges that had rocked the banking sector in the last 5 years which resulted in specification of bank executives, closure and restructuring of banks. The Reserve Bank of Zimbabwe after careful consideration de-specified former bank Executives and authorized the closed and restricted banks to re- align, re-invest and re-open for business.

ii. Demand for Product: The two mines are sitting on book orders worth US$105 million and with a quick capital injection, the companies will regain their glory of yesteryear in the shortest period possible.

iii. Committed Labour Force: Most of the workers showed willingness to return to work in order to revive the fortunes of the company.

iv. Transference of the A A Mines to Ministry of Mines. The Committee took notice that H. E President has re-assigned SMM under Reconstruction to the Ministry of Mines and Mining Development. It is Committee's expectation that the Ministry of Mines and Mining Development will be open minded in its search for lasting solutions to revive SMM mining operations.

The Committee however, does not recommend the use of ZMDC as a vehicle for investment into SMM. SMM Mines have great potential and the solution to resuscitation of the mines lies in finding a last solution of the dispute and creating an environment that will allow and attract massive financial investment into the two Mines.

4.11 Contempt of Parliament

In the gathering of evidence, the Committee noted that two of its witnesses, SMM administrator, Mr. Gwaradzimba, and the Minister of Justice, Hon Chinamasa, contravened the provisions of the Privileges, Immunities and Powers of Parliament Act. The Committee finds the SMM Administrator, Mr. Arafas Mutausi Gwaradzimba, at fault by publishing a defamatory statement in the press (The Newsday of Friday 4th March 2011) hence demeaning the proceedings and character of the Committee (see Annex U).

The Committee notes the second witness Minister of Justice, Hon Patrick Chinamasa, could have lied under oath regarding the possession of bearer share certificates of SMM holdings that were previously in the possession of T & N. The Minister of Justice, Hon Chinamasa made a commitment under oath to present the bearer share warrant as proof of government ownership of SMM Holding after payment of US$2million. Three letters from Parliament requesting the Minister to fulfill his commitment have been presented to the Minister of Justice and to date no bearer share warrant from T & N has been presented to the Committee (see Annex T). From evidence presented, the Governor of the Reserve Bank of Zimbabwe and the Co Minister of Home Affairs are also seeking proof of government possession of Bearer Share Warrants as evidenced by Hon Minister of Mines and Mining Development,( Hon Mpofu) letter to Hon K D Mohadi, Co Minister of Home Affairs dated May 24, 2011 attached as Annex (S).

5. Recommendations


5.1 Ownership Wrangle

5.1.1 A mediator is required to resolve the differences between the key stakeholders and negotiate a lasting solution, in order to pave the way for the resuscitation of the 2 mines. There should not be any ownership wrangle. Any dispute regarding the shareholding of SMMH was exhaustively and legally resolved by a court decision in the United Kingdom courts where parent companies T and N, Africa Construction Limited, SMM Holding, Africa Resources Limited are domiciled.

5.1.2 The Reserve Bank of Zimbabwe should collect the funds advanced to AMG to acquire T & N's rights in respect of SMMH as AMG lost its bid to gain control of SMM Holding in the United Kingdom Courts and surrendered the Bearer Share Warrants in accordance with U.K.Court decision, order 8.

5.1.3 The guarantee of protection and right of property should rest with the holder of valid legal documents. This should be respected in line with the country's laws and the Constitution.


5.2 Operational Performance of AA Mines

5.2.1 Investment opportunities for the mines should not be restricted to the Far East only. Government should open up and approach other local and international investors.

5.2.2 Once investment has been found, a management team with the technical knowledge and expertise should be appointed in order to realize optimal performance of the two mines.

5.3 The Mines in the Reconstruction Era

The Prevention of Corruption Act provides protection to any specified person in so far as any dealings with his assets. Section 10(2) specifically prohibits any person from disposing of assets of a specified person. Section 10(7) sets out what should happen in respect of any transactions concluded without the permission of the Investigator. At issue is whether a specified person's assets can be dealt with in terms of another law other than the law providing for his specification.


5.4 Impact of De-specification of Mr. Mawere on SMM Holdings

The consequences of de-specification must be self evident and credible lest the instrument can easily be abused to deprive citizens of their right to property. The de-specification of Mr. Mawere should be followed by restoration of his rights


5.5 State Indebtedness

The effect of the law is to make all persons, natural and juristic, indebted to the state by virtue of doing business with any state-owned institution including utilities. The operation of the law exposes citizens to the risk of losing assets to the state without any meaningful judicial oversight. A law that arbitrarily converts claims of state owned institutions to state obligations governed under the Reconstruction Laws has to be carefully examined and interrogated by the House.


5.6 Conflicting Interests

Mr. Manikai and Mr. Gwaradzimba should recuse themselves from the reconstruction efforts of AA Mines taking into account their historical links with the companies. Failure to recuse themselves, then the Executive must retire them from these responsibilities. This is in line with best international practices.

5.7 Plight of Workers at Shabani-Mashava Mines

5.7.1 The rights of A A mine workers should be respected in line with the country's labour laws and the Constitution.

5.7.2 Management at AA Mines should desist from using excessive or coercive force in the handling of workers grievances.

5.7.3 The Anti-Corruption Commission and the police should be directed by appropriate authorities to investigate allegations of abuse of office, theft of mining material, vehicles, building material, mining equipment, mining claims, unauthorized sale of assets and mismanagement of resources at the two mines and associated SMM companies.

5.8 Lack of Collective Responsibility by the Executive

The Executive should be encouraged to communicate internally in order to avert making conflicting decisions and issuing out conflicting statements on SMM Holdings.

5.9 Contempt of Parliament

The Speaker should make a ruling on the actions of Mr. Gwaradzimba the Administrator for SMMH and Hon Chinamasa, the Minister of Justice who contravened the provisions of the Privileges, Immunities and Powers of Parliament Act.

5.10 Due Diligence Audit on SMM

The Executive should carry out an independent due diligence audit of SMM and associated companies, to fully understand the current financial status of SMM since it went under Reconstruction and also specifically look at:

è Disposal and sell of assets claims and mining equipment and material from AA Mines

è Disposal and sell of associated companies

è Debt arrears or debt status of SMM

è Legal and professional fee costs that relate to payments made to the Administrator and the legal advisor under Reconstruction of SMM

6. Conclusion

The Committee would like to see the speedily recovery of the 2 mines. In order to achieve this, it is important that government and Mr. Mawere agree and recognize that the current dispute on ownership of SMM Holding (United Kingdom) was settled by United Kingdom courts. Government has not been able to acquire transfer of the bearer share warrants from T & N to government of Zimbabwe or AMG Global. Government has only been able to take control of physical operations of the now closed SMM Zimbabwe mining operations and associated companies using the Reconstruction Act but not the shareholding control of the parent company SMM Holding in the United Kingdom. The Committee encourages the government and Mr. Mawere to enter into dialogue, negotiate and develop a win win lasting solution that will allow the resuscitation of the two mines and allow a window of opportunity for investors to inject developmental capital into the two mines. As long as the key stakeholders remain divided and hostile to each other, it would be difficult to build confidence and trust in the investors. The workers will continue to suffer, the construction industry will continue to import material at high cost and the National Treasury will be deprived of the much needed foreign currency revenue resources. In turn national economic development is retarded. Parliament passed the Reconstruction of State Indebted and Insolvent Companies Act (Reconstruction Laws) and must take ownership and responsibility. However, the discretionary application of the Reconstruction Laws raise many challenges of confidence and security of ownership to Zimbabwean indigenous business men and women who have benefited or will benefit from government's implementation of the indigenisation and economic empowerment programme anchored by the Indigenisation and Economic Empowerment Act.

MR. MUNENGAMI: Thank you Madam Speaker, I also rise to add my voice on the Report of the State of Affairs of Shabani-Mashava mines that has been presented to this House. I would like to explain further some of the social and economic impacts that the non-performance and the subsequent closure of these to mines have had on the communities of Zvishavane and Mashava towns, and the nation as a whole. As highlighted in the report, at its peak performance, the two mines employed about 4 000 people and another 60 000 were benefiting either directly or indirectly from the mines operations. The two towns were highly depended on the two mines as evidenced by the fact that Shabani mine built six high density and six medium density suburbs. When the Committee visited the two mines, it had an opportunity to interact with the workers and they shared with us part of their pain and hardships as they were struggling to survive. One woman, employed as an artisan boiler maker shed tears in front of the Committee as she narrated how she was failing to send her children to school and to provide other necessities such as clothing and food. Another male employee also told the Committee that he was failing to buy himself decent clothing and was using gavi as a belt to support his trousers such that if it became too dry, he risked his trousers falling down. The situation in the communities had deteriorated to a point that most children had dropped out of school and majority of people were caught up in many vices such as drinking, domestic violence, prostitution as a stress reliever.

The situation was worsened by the fact there were sour relations between management and the workers. The Committee was told by the workers that the Administrator last visited the mines in 2006, during a capacity building workshop and the Minister of Justice, Hon. Chinamasa last visited the mines in 2004 during the takeover of the mines by the government. May be this could be one of the reasons why it has taken so long for a solution to be found because the people who were supposed to be driving the reconstruction process of the two mines are too detached from the events that are happening on the ground. In business management, it is generally accepted that part of effective management and leadership involves management by walking around. This technique gives management a good picture of what is happening on the ground and hence make prompt informed decisions for the growth and development of a company.

Mr. Speaker, the Committee also observed that key infrastructure at the two mines had been destroyed, stolen or vandalized. The state of the infrastructure at the two mines can best be described as that of a patient in a coma in the intensive care unit but at the same time there is no oxygen or doctors to try to resuscitate that patient. In the underground shaft at Shabani mine, the Committee was told by the workers that the water level stood at about 800 meters against a depth of 1000 meters. This was due to lack of power supply to pump out the water and it would to be a surprise that by end of the forthcoming rainy season, and the water level would have reached full capacity and probably spill out to the rest of the mine. At the same time, there is a lot of equipment underground which has been submerged in water hence leading to more deterioration and higher costs for replacement and repair.

The Committee had an opportunity to go underground at Shabani mine during one of its site visits. However, we were warned by some concerned workers that doing so at our own high risk because power could have been disconnected or the elevator taking us down the shaft could have developed a mechanical fault. However, the Committee was very courageous and went down the shaft because we were so determined to really understand the impact of flooding on existing machinery and on possible future operations and resuscitation of the mine. The Committee also saw the mill factory at Shabani mine which burned down to ashes following an electrical fault in one of the rooms. The employees failed to put out the fire because there were no working fire extinguishers and Mimosa Company was called in to assist in putting out the fire.

Mr. Speaker, the Committee informed that there is huge market for asbestos mined at the two mines spanning across four continents. These markets are found in North and South America, Asia, North Africa as well as in the Middle East. What the Committee found tragic was the fact that despite the huge demand for the produce, the prices for this type of asbestos is a record high. At the same time the Committee was told by management of AA mines that the fiber from the two mines fetched a higher price than other similar products because of its quality. This type of fibre is mainly used for roofing products, for water and sewer piping, for friction materials such as brake and clutch lining in motor vehicles and for a variety of household appliances. In the recently launched mid-term plan for 2011-2015, the Ministry acknowledged that the "performance of the construction industry in Zimbabwe has been on the decline due to shortages of key raw materials and this can also be attributed to the non-performance of the two mines as well due to the fact that the country is importing asbestos materials at a higher costs for the construction industry. The non-availability of this product on the local industry has a huge impact on the growth of the economy as well as revenue generation for the fiscus.

Mr. Speaker, there are many sectors in the towns of Zvishavane and Shabani that were affected by the closure of these two mines in the last seven years. These include suppliers and distributors of various goods and services. One of the most affected groups is the local authorities. The Committee was told by Zvishavane local authority that it was owed US4 million by Shabani mine in terms of water and other charges. The local authority failed to disconnect water supplies on compassionate and health grounds and also due to the fact that 60% of its supplies are consumed by the mine. Mr. Speaker, the challenges at the two mines were an eye opener for the Committee in terms of participation and ownership of resources by workers. As the country moves towards issues of indigenisation and economic empowerment, it is important that workers are also given shares so that they have an influence in terms of shaping programs designed at community development. This is also a wake-up call, mining companies should be compelled through their Corporate Social Responsibility programs to create programs for sustainable livelihoods for mining communities in preparation for company closures or slump in production or low prices on the world. This will help to mitigate the social impacts of non-performance of mines on communities. I thank you.


Motion put and agreed to.

Debate to resume on Thursday 14th July, 2011.



THE MINISTER OF CONSTITUTIONAL AND PARLIAMENTARY AFFAIRS: I move that we revert to Order of the Day Number 5.

Motion put and agreed to.



MR. CHIKWINYA: I move the motion standing in my name;

That this House:

TAKING note of the provisions of the Constitution, the Defence Act; [Chapter 11.02], the Police Act [Chapter 11.10], Prison Act [Chapter 7.11] and the Public Service Act [Chapter 11.04] which all demand neutrality of the military, police and prison officers and the Central Intelligence Organisation (CIO) as well as ordinary civil servants.

NOTING FURTHERthe provisions of Article XIII of the GPA which requires neutrality and de-politicization of State organs and State institutions.

CONCERNED by recent statements by some Service Chiefs.

NOW, THEREFORE, this House

(a) condemns the unconstitutional and treasonous statements that bring into disrepute the professional institutions of the Army and the Police;

(b) requests the relevant institutions to reaffirm their loyalty to the constitution and the laws of Zimbabwe; and

(c) directs relevant authorities to carry out investigations into the said utterances and the unconstitutional statements and make such findings public.

MR. GONESE: I second.

MR. CHIKWINYA: Thank you Madam Speaker for allowing me to take this opportunity to present before this august House, the motion which pertains to the environment which we create as a nation when we engage in the process of trying to represent the people within our country as leaders of political parties. This motion, for the avoidance of doubt, seeks to achieve an environment whereby people elect their leaders in government in an environment which is free and fair.

First and foremost Madam Speaker, I would like to draw the attention of the House to the definition of elections. Elections are a process that enables citizens to exercise their democratic right to chose who shall govern them. They are important because they confer legitimacy, legality and the right to govern and a political right to make such decisions. Why I have decided to talk about elections first is such that it is quite important, for the motion addresses statements from the security sector or from some of the security sector service chiefs which are normally made during election time. Every Government has enabling institutions which make it possible for it to carry out its government mandate or its executive mandate as it seeks to govern or as it seeks to fulfill the mandate created during the election time. One of the institutions is the security sector made up of predominantly the armed forces through the ZNA, the Police through the ZRP, the Prison Services and the CIO. The arms which I have stated within this institution are inscribed in the relevant Acts which are first and foremost the Constitution of Zimbabwe as read from Section 93 through to Section 100(a) of our Constitution.

The Defence Forces are established through the Defence Forces Act {Chapter 11.02], the ZRP is established through [Chapter 11.10] of the Police Act, the Prisons Service is established through [Chapter 7.11] of the Prisons Act and indeed the Public Service Act [Chapter 11.04]. All these relevant Acts which I have alluded to confirm neutrality of these service chiefs or public servants to the government of the day, they confirm neutrality of these public servants to be apolitical of any political activity that has a direct interference within the election or within the choice of government of the day.

Madam Speaker, our history will show us that in its current Constitution, the ZNA is a creature of liberation war movements, ZANLA, as it was a war movement of ZANU (PF) and ZIPRA as it was a liberation war movement of ZAPU...

MR. MUDARIKWA: Point of order Madam Speaker. The hon. member cannot describe the Defence Forces as a creature, he need to withdraw that statement. - [MR. GONESE: It is a creation] - [HON. MEMBERS: Inaudible interjections]-

THE DEPUTY SPEAKER: Order, the hon. member did not say creature, he said creation - [MR. J.M. GUMBO: He said creature, the officer is misleading you]-

THE DEPUTY SPEAKER: Order, order, can you repeat what you said.

MR. CHIKWINYA: For the benefit of the House Madam Speaker, I said creature and I can defend that. A creature is a creation so the Defence Forces are a creation of the constitutional laws of Zimbabwe. Do not imagine a creature as an ugly animal, but a creature is simply a creation. An ugly animal, a beautiful animal is a creature because it was created by God. The Defence Forces are a creature because they were created by the Constitution of Zimbabwe - [MR. J. GUMBO: Madam Speaker …]-

THE DEPUTY SPEAKER: Order hon. member, in terms of the law, he is correct. - [MR. J.M. GUMBO: He is correct but he did not say creation, he said creature]-

MR. CHIKWINYA: I will move on why I am referring to the liberation war movement in particular ZANLA representing ZANU PF - [MR. J.M. GUMBO: The officer told you that he said creation when he actually said creature]-

THE DEPUTY SPEAKER: Order Hon. Gumbo, the officer cannot defend himself so please do not attack him.

MR. CHIKWINYA: I referred to ZANLA as a liberation war movement representing ZANU PF during the liberation war era and ZIPRA representing ZAPU during the liberation war era versus the State Security Agents of today, which were born out of an amalgamation of all the parties that were at war during the liberation struggle.

Madam Speaker, why do I say so? Because there are elements within the ZNA and indeed the Security Service Sector who still have this war mentality. I can quote Brigadier Douglas Nyikayaramba as quoted in The Independent newspaper of May 27 - June 2, 2011 as having said,

"There is a close connection between ZANU (PF) and ZANLA and you cannot afford to separate me from that. Truly speaking, I am ZANU (PF) and ZANU (PF} is in me and you cannot change that"

When the ZNA was transformed from being a liberation war movement of ZANLA and ZIPRA, the intention was then to make them into a professional unit that will serve in an independent and democratic Zimbabwe because the relevant Act that established the ZNA and the security sector services confer neutrality of being apolitical for the Defence Forces or any security services or the members thereto. It is against the same laws, if a Brigadier and a serving Brigadier for that matter then declare himself to be a member of one political party within the government.

Madam Speaker, precedence was set at the establishment of the MDC when it first entered its elections in 2000. After garnering 57 seats out of 120, the next elections were the Presidential elections of 2002 and indeed sensing danger, on the night of the 9th January 2002, the late Lt. Gen. Vitalis Zvinavashe addressed a joint Press Conference to effect that,

"let it be known that the highest office in the land is a straight jacket whose occupant is expected to observe the objectives of the liberation struggle. We will therefore not accept, let alone support or salute anyone with a different agenda that threatens the very existence of our sovereignty, our country and our people."

I refer you to ZBC news bulletin of the 9th of January 2002.

Madam Speaker, again a contravention of neutrality of the Defence Forces. The Lieutenant General at that time was the head of the Defence Forces and in this case, he was instigating that he will not salute any person who would have won the 2002 Presidential elections. Let it be known on record that the 2002 Presidential Elections were pitting then Robert Mugabe and Morgan Tsvangirai. Of the two Presidential candidates, the security sector become more evident on the ground leading campaigns in favour of ZANU PF. More than 500 members of MDC lost their lives, more than 500 000 were displaced in clearly and internationally recognised state sponsored violence. The SADC in its statement during the report of the national process in the run up described these elections as shambles. The whole country was thrown into militarised moment. Just before these elections, General Chiwenga who was now head of the defense forces said on 10th March elections are coming and the army will not support sell out and agents of the west before and during presidential elections. He was speaking to the SW Radio on the 10th of March and was asked by SW Radio about the role of the army in protecting democracy? Chiwenga said, "Are you mad? What is wrong with the army supporting the President against the election of a sell-out?" This Madam Speaker, was a preemptive statement to say people of Zimbabwe you know what happened in 2002. You know all the violence, you know the injuries, you know what the military can do and if you are going to support any other person besides the one Robert Mugabe, you will be supporting a sell-out. My submission to this august House is that the police, the defense forces, the prison and state security agents have no space in this country's constitution to utter such statements within the electoral process.

The army chief of staff Major General Martin Chidondo addressing soldiers at an army shoot out in Harare said, "the constitution of this country should be protected by voting and in the June 27 Presidential election pitting our defense chief comrade Robert Mugabe and Morgan Tsvangirai of MDC -T, we should therefore stand by our commander. Soldiers are not apolitical only mercenaries are apolitical; we signed and agreed to protect the ruling party's principles of defending the revolution. If you have other thoughts then you should remove that uniform," this was said on the 31st of May in 2008. You can see Madam Speaker, an increased move by the military of issuing statements that do not promote democracy and the electoral process. Again, in contravention of the constitution of Zimbabwe that declares the apolitical nature of the Service Chiefs within our electoral process. What is more disturbing Madam Speaker, and what motivated me to bring this motion is that as soon as these statements are made violence proceeds, as soon as these statements are uttered violence is experienced on the ground in Zimbabwe. As soon as these service chiefs make a position that they are going to support these candidates, any person who is viewed to be in opposition of that candidate, who they have chosen is declared or deemed to be the enemy of the state. Madam Speaker, Major General Anglebert Rugeje addressed a rally in Masvingo 2008 again said, "the country came through the bullet not pen and paper therefore it will not go by your X. We can not let the effects of such people as Cde Chimombe who liberated the country just to go to waste. I came here by Helicopter the next time I come to Jerera the Helicopter will be full of bullets. You know what you did!" This was in utter reference that the people of Jerera, which is Zaka East had voted for one Hon. Mudzuri of MDC T into Parliament. Madam Speaker, to reinforce my words once these people utter such statements violence proceeds. One week after these statements were said by the major general Angelbert Rugeje, two people were burnt to death at Jerera Growth Point. Five people are living with injuries sustained from arson and are actually seeking assistant from the state and this state can not even provide them with anything.

Two lives were lost simply from an utterance which is unconstitutional from a major general who is still serving the army today. In Mudzi in 2008, soldiers Madam Speaker went handing out bullets to villagers saying; "if you vote MDC in the presidential run-off, you have seen the bullets we have enough for each one of you so beware and I refer you to page 3 of human rights watch of 2003". Madam Speaker, what happened in Mudzi after that? Serious violence was experienced towards 2008 elections. Again the head of defense forces Constantine Chiwenga said on 23 June 2008; "our Cde defense forces chief, our leader President Mugabe will romp to victory we say so because we have no apology to make to anyone house nigger and puppet".Madam Speaker the continued said statements which are being ushered by these security service chiefs without anyone in the executive giving directions that they must not do so remains a major threat to democracy in this country to me as well as the mover of this motion and the people of Mbizo that I represent. Not to be out done Madam Speaker one Paradzai Zimondi, said; " if the opposition wins the elections I will be the first one to resign from my job and I will go back to my piece of land. We will not let anyone without liberation history to rule this country. I am giving the order to vote President Mugabe" . When you go for elections Madam Speaker, we think that we will be contesting as political parties in civilian authority MDC born from the Labour movement, poor people, students and workers; and ZANU PF having been born from the liberation struggle. We have now transformed into a democratic society, what we do not know is, we will still be fighting people who have put on masks of civilian authority. We are fighting these people who are security personnel of the state using state resources both material and MDC will not be fighting Jorum Gumbo, we will not be fighting Chinamasa of this world, but it will be fighting these army generals who have state ammunition to fight civilians of this country. Police recruits who were leaving for Mozambique said the country came through blood and the barrel of the gun and it can never be colonized again with a simple pen which cost as little as five cents. Madam Speaker, Augustine Chihuri is the Commissioner General of the Republic Police - in the event that there is a dispute which culminates in public disorder between contesting parties during an election, they go to the police to seek law and order. They go to the police to seek recourse on their way to the courts. Now, here is the Commissioner General uttering that you who is contesting ZANU PF - you want to sell back this country through the value of five cents. Do you think that any person who is not ZANU PF will get any justice from the same police force? I do not think so - I doubt that Madam Speaker.

Then the clowning moment, every time ZANU PF has got a clown which represent it through the military and this time it was Douglas Nyikayaramba. He was asked by a reporter from Standard if he would allow Morgan Tsvangirai to rule and he said, I am not a hypocrite - I will stand by what I have said, what I know is best, what I know is principled, we lost a lot of people because when some of these people turned against the liberation struggle and for me to wake up and say good morning sir...

THE DEPUTY SPEAKER: Hon. members at the back, can you listen in silence!

MR. CHIKWINYA: For me to wake up and say good morning sir, no! No! No! This was Douglas Nyikayaramba and at first I thought he that he was a clown but he went on to mean his words. As we speak today, the Right Hon. Prime Minister of the Republic of Zimbabwe has not had even one salute from even one Corporal of the armed forces because this is an army instruction. Little do they know that are not saluting the person but it is constitutional that they salute the office - for a salute is a sign of respect. One week later Douglas Nyikayaramba came out in the media regarding the Right Hon. Prime Minister as a threat to the state security. I am not sure where he draws this concept and perception that the Right Hon. Prime Minister can be threat whilst he has equal powers like the head of state in the Government of National Unity.

Madam Speaker, I could have gone with the statements and looked at these alone but it is imperative for the people of Zimbabwe to look at why these statements are made. It is imperative to look at the motive behind these statements by people who are expected to act in a manner that is constitutional. At the centre is the state, on the other hand is the military, ZANU PF thinks it is the state and the military thinks it is ZANU PF and therefore they are the state. So there is contestation of control of the state from ZANU PF and its civic state and the military in its military role. That is why you see this over aching and this contestation of roles. Douglas Nyikayaramba is now purporting as spokesperson of ZANU PF. The Minister of Defence cannot even control the army - because all of them think that they are the state. The mentality that this is now a new dispensation, a Government of National Unity borne out of parties with equal representation in Parliament is not even in their minds and cannot even dream about it.

THE DEPUTY SPEAKER: Hon. members, can you listen in silence!

MR. CHIKWINYA: Madam Speaker, ZANU PF has gradually lost electoral confidence from 2000 and at the inception of MDC, ZANU PF was not and is not prepared to be displaced from State House. It has sought its survival through hook and crook - it has sought its survival through illegitimate means and through state security agents. This is the reason why you are seeing the state security agents - they have got the right to cause harm and despondence in the country of Zimbabwe - they are being put on the fore front. I am attaching the military to ZANU PF because in 2008, ZANU PF deployed military personnel of high ranking and I shall say them by name and constituency.

Harare Metropolitan Province - Air Vice Marshall M. Karakadzai, Bulawayo Province - Col. C. Sibanda, Bulawayo Central - Major General Ndlovu and Major General J. Ncube, Manicaland and Mutare South - Brig. Tarumbwa, Buhera Central - Col. L. Mzilikazi, Buhera North - Major General L.M. Svosve, Buhera South - Major General D. Muchena, Buhera West - Major General Nhachi and Lt. Col. Kamonge, Chimanimani West - Lt. Col. Murecherwa, Chimanimani East - Major General Mabvuu, Headlands - Col. Musunguma, Makoni North- Major General V. Chisuko,

Makoni South - Wing Commander Mandeya, Mutare Central - Lt. Col. Tsodzai, Lt. Col. Sedze and Mandi Chimene, Mutare West - Lt. D. Kashiri, Mutare North - Lt. Col. Kazenge and Lt. Col. Mazaiwana, Mashonaland South - Brig. Shungu, Bindura South - Col. Chipwere, Bindura North- Col. Parwada, Muzarabani North - Lt. Col. Kazaza, Muzarabani South - Major General H. Maziri, Rushinga - Col. F. Mhonda, Lt. Col. Bheteni, Shamva North - Lt. Col. Dzuda, Midlands - Air Vice Marshal Muchena, Brig. S. G. Moyo, Lt. Col. Kahuni, Chirumanzi South - Major General T. Tsvangirai, Mberengwa East - Col. B. Mawire, Mberengwa West- Major Gen. T. Marufu, Mat South - Vice Marshal Abubasutu, Beitbridge East - Captain Maira, Rt. Gen. Mbedzi, Rt. Col. B. Moyo, Gwanda South - Major Gen. J. D. Moyo, Gwanda Central - Major Gen. B. Tshuma, Matopo North - Lt. Col. Maphosa, Brig. Khumalo, Binga North - Maj. E.S. Matonga, Lupane East - Major Gen. Mkwananzi, Lupane West - Lt. Col. Mabhena, - Tsholotsho - Lt. Col. Mlalazi, Hwange Central - Lt. Col. P. Ndlovu, Masvingo - Major General E. Rugeje, Rt. Gen. Mashingaidze, Rt. Brig. Gen. Rangwani, Bikita West - Major General R. Murwira, Chiredzi Central - Col. G. Mashava, Chiredzi West - Major Gen. E. Gono, Gutu South - Major General Chimedza and Air Vice Marshal Muchena.

These many and other top ranking soldiers were deployed in each and every constituency to lead ZANU PF campaign. To show that ZANU PF was serious in its campaigns, of the 210 soldiers that were deployed in the constituencies only six were women to show that this wanted heartless and amadodha sibili who can instigate violence. What then proceeded the period between April to July 2008 was state sponsored violence. We are all witnesses of the violence that happened. It was no longer political party MDC versus ZANU PF - it was political party versus political ammunition. People were firing live bullets on top of a mass at a rally to intimidate the gathering. People went about killing villagers in Manicaland and declaring that this one is a pig and we all know that. Where bullets are involved Madam Speaker, they are not coming anywhere else except from the state itself. But we go on further to ask why the military is involved. I have managed to pick up that patronage and military enrichment in the economy - ZANU PF because it is a coagulation of the military and the civilization authority has managed to make sure that the authority in each and every civic institution is headed by military personnel. The Zimbabwe Prison Service is led by Paradzai Zimondi, the Zimbabwe Republic Police is led by Augustine Chihuri, the CIO by Bonyongwe, ZEC there is again a soldier there, NRZ there is a retired Air Commodore M. Karakadzai. You will then find out that Zimbabwe has become a de-facto militarised state. The military has taken control of an expanding range of decisions and actions from political strategy to formulation and implementation of political, agrarian and economic policies.

We have the military in embassies for example the Embassy of Kenya and the Embassy of Cuba. We have the military in the media.

The GNU established various Commissions, but if you look carefully in these Commissions military personnel are being planted, serving or retired. There is military personnel, in ZBH, ZIM Papers, New Ziana, Trans-media and Kingstons, but these military personnel are not only doing it for their salary Madam Speaker, but know that there is something of personal enrichment to them. They plundered in DRC through a company called OSLEC. They are plundering in Chiadzwa as we speak today Madam Speaker. There is personal enrichment.

Madam Speaker there is acknowledgement by the Zimbabwean political leadership and in SADC that the military has no business in making partisan political statements or interfering in electoral affairs and this was said by one Joachim....

AN HON. MEMBER: Point of order.

THE DEPUTY SPEAKER: Order. What is your point of order hon. member?

AN HON. MEMBER: Madam Speaker, we cannot sit in here to listen to an hon. member telling lies that they are plundering resources from Chiadzwa when there is no evidence to prove that.

THE DEPUTY SPEAKER: Hon. member, can you tell me the standing order that you are taking that order from?

AN HON. MEMBER: But is it true that soldiers are plundering from Chiadzwa.

THE DEPUTY SPEAKER: Order hon. member, I mean sit down. All I am saying hon. member is that you are raising a point of order, and all I am asking is for you to quote from the standing rule you are taking your point of order so we can check from the green book here.

AN HON. MEMBER: Those are unsubstantiated facts which he is just reading.

THE DEPUTY SPEAKER: Order honourable, if you have any argument, I will give you your chance to debate. Point of order overruled.

MR. CHIKWINYA: Thank you Madam Speaker, I was saying that there is agreement within the GPA that the military has no business in making political statements or interference in political affairs and I refer to the statement by the former President of Mozambique, His Excellency Joachim Chissano, to that effect.

Madam Speaker, in winding up, may I please take note that the GNU sort to establish the National Security Council to replace the Joint Operations Command, but in essence whilst this House has passed a law that establishes the National Security Council, the Joint Operation Command continues to sit in parallel government programmes and however, implementing the same on the ground and to the people of Zimbabwe.

Madam Speaker, one of the issues to negotiations was that the Security Sector must be reformed and make it into a professional sector that aligns itself within the laws and the dictates of the Constitution of this country. ZANU PF however, in its resolution No 6 of its 6th Congress in Mutare said "ZANU PF as a party of revolution and people's vanguard shall not allow the security forces of Zimbabwe to be subject to any negotiation for a so called security sector reform." That is based on patent misrepresentation of Zimbabwe's historic history and for the mere purpose of weakening the same so that it can easily be overthrown and to this end Madam Speaker, the negotiators are finding it difficult to reform the security sector.

Madam Speaker, to put the icing on the cake, the Commander in Chief himself, the wearer of the grand slash of commander, one Robert Mugabe said "the war veterans came to me and said, President we can never accept that our country which was won through the barrel of the gun can be taken by an X made by a ballpoint pen. Zvino kana ballpoint pen kana ichirwisana ne AK, is there going to be a struggle between the two." This was the President saying so.

Madam Speaker, in conclusion what I seek this House to resolve is to put our differences aside. Soldiers are a creation of the people's mandate because we would have given the same electoral mandate to the day. They should serve the people, they should be servants and become subservient to the people especially so during the time of peace. Therefore, I seek all measures to de-militarise all electoral institutions and in particular ZEC. I seek that there is an end to politicisation of the state security in order to ensure that Zimbabwe retains a professional, independent and non partisan military that owes its allegiance to Zimbabwe and not a political party.

I also request that the Executive takes measures to transform the state security agents into a professional and apolitical force that does not participate in any political party and remains loyal to whichever government is constitutionally elected by the people of Zimbabwe. This includes measures to restore and replace the current political leadership of the state security sector that has blatantly demonstrated its partisanship towards ZANU PF.

In line with the GPA it should be ensured that the National Security Council charged with civilian oversight of the security sector particularly the military, is functional and effective in that the joint operation command has been disbanded.

I also seek that there be a recall and confinement to the barracks of all soldiers currently deployed across the country. I seek that direct all security sector service chiefs to jointly issue a public statement denouncing mainly in political and civilian affairs and commit themselves and their troops to non partisan conduct.

Lastly Madam Speaker, I salute the liberation war heroes, I salute those who fought for our independence and in particular I salute the General or the Commander of the ZANLA forces Josiah Magama Tongogara who, in 1978 said "Our demand is just and legitimate; we demand a free and fair election where international observers will oversee." I thank you.

MR. GONESE : I would like to take this opportunity to thank the mover of the motion for an immaculate presentation. He has put the case very well and I was inclined to just stand up Madam Speaker, and say I agree and sit down. He has put it so well that there is little that one can add to the motion.

I would like to say that the motion has been raised at a very important time in our country. We are moving towards elections. One of the political parties in the GPA insists that we are going to have elections this year, although every sane person in this country can tell you that it is impossible to do so. However, when we look at this motion, we must look at it in the context that we must have an outcome which is accepted. Madam speaker, we cannot continue to have disputed elections, we cannot continue to have a situation where the will of the people of Zimbabwe continue to be subverted.

As we all know, in 2002, we had disputed elections, we had a situation where the will of the people was subverted and one of the reasons was a statement made by the commander of the Zimbabwe Defense Forces at the time, which has already been quoted by the mover of the motion. It is now the appropriate time to move away from that time when Zimbabwe was a Pariah state. We had a situation where we would only invite our friends. We would invite those observers who would come here, go to the Sheraton Hotel and move around the country, 'see no evil, speak no evil and hear no evil' and at the end of the day, give a statement in praise of the elections when in fact the elections would not have been free and fair. We all know that previous observers from the SADC Parliamentary Forum in 2002 had an adverse report on our elections. We also had an adverse report from the Commonwealth observer team which was led by Abdul Salam Abubaker from Nigeria who also condemned the 2002 elections as a result of which we eventually left the Commonwealth.

In 2005, we could not even allow our own brothers from the SADC Parliamentary Forum to come and observe the elections. That was the same situation in 2008, where it was embarrassing for those of us who are members of the SADC Parliamentary Forum. Our colleagues were saying that, in future they will not allow Members of Parliament from Zimbabwe to participate in observer missions because in Zimbabwe we are not allowing the forum, composing of our own brothers and sisters, in SADC and not from anywhere else in Africa. They are not from Western Europe or the United States of America but are our own kiths and kins but we would not allow them because there was something fundamentally wrong with our elections. All our colleagues in the region like Botswana for instance, had elections which were commented by everyone to include our own observers from Zimbabwe who presented their report here, that the elections in Botswana were perfect. Madam Speaker, that is where we want to reach, a situation where we have elections which are acceptable, not embarrassing and are able to invite all and sundry because we will not have anything to hide and knowing that our elections will be clean.

This motion refers to the Global Political Agreement. I want to refer to some specific provisions of that agreement. The three political parties, in their wisdom agreed, and in Article 2 of the GPA, they agreed to this declaration of commitment, which I will read out. I would like hon. Navhaya to particularly pay attention because I know that he had never read the GPA before. The Article states; "The parties hereby declare and agree to work together to create a genuine, viable, permanent, sustainable and nationally accepted solution to the Zimbabwe situation and in particular, to implement the following agreements, with the aim of resolving, once and for all the current political and economic situations and chatting a new political direction for the country."

We want to have a new political direction for Zimbabwe, a new political direction where we do not have soldiers meddling in politics, where we do not have soldiers and police officers doubling up as Political Commissars of a particular political party. We all know that they played their role during the liberation struggle and their mandate now is to work for the state, country and people of Zimbabwe and not solve the objectives of any one of the political organisations. Those who are tired and have been in the army for too long have been given farms, why do they not go and retire to their farms and concentrate on their farming activities? If they want to join the political arena, they are free to do so, after all, we have retired members of the army who have joined politics. If they want to join politics, they should do so, but they should not do like what Douglas Nyikayaramba is doing. He is the commander of 3-Brigade and yet he declares allegiance to a political party. We cannot allow a situation, which has been referred to by the mover of the motion, where the Commissioner General of the Police declares allegiance to a particular political organisation. We had a very sad situation before June, 2008, where police officers were forced to cast their vote in front of their superiors when they were casting postal votes and were directed to specifically vote for a particular political party. They are abusing the postal vote. Some of the officers were not even deployed outside their constituencies but they were being abused and forced to utilize the postal vote when it was not necessary.

When we fought the war of liberation, the key objective was to have one man-one vote, which I may translate to mean, one person-one vote, where every Zimbabwean has the right to choose their political leader and we have incorporated that into the Constitution through Amendment Number 19, where the right to participate and the right to vote is enshrined in that hallowed document and we must respect it. We must have a situation where, when people go out to cast their votes, the outcome is reflected and whoever wins is given the mandate to rule this country.

I am gratified that hon. Mudarikwa is here and my brother, hon. Mandebvu from Gutu is also in Parliament. This is not a motion directed at any particular political party. We are saying, as the Parliament of Zimbabwe, as the representatives of the people of Zimbabwe, we must put our heads together. We must take a bipartisan approach, which will be beneficial for future generations so that where we have state institutions behaving like what the defense chiefs are doing, we call a spade a spade and say that it is wrong. We must all support this motion so that we can adopt it and the relevant authority can investigate. The statements which have been made and quoted are subversive, treasonous and amount to a preemptive coup that is what it means; it is a coup against the people of Zimbabwe because their will cannot be reflected. They are making sure that the people of Zimbabwe are faulted to cast their vote. What is the purpose of going to vote if that vote is not going to result in a transfer of power? As members of this august House, as people who were elected freely or not freely, fairly or unfairly, but the point still remains that we were declared Members of Parliament. As such, we must strive to represent the people of Zimbabwe and do what is best for Zimbabwe. I therefore implore my colleagues on the other side to support us on this motion so that to the future generation, it will be quite clear that when we go for election there are two possible outcomes and if you are a participant, you know that you can either win or you can lose. Madam Speaker, we do not want to have a situation where the mover referred to a resolution of a Congress held in Mutare where people of a particular political party were clearly showing that they are not prepared to accept an outcome where they can lose an election.

We want a liberation party to accept that they played their part of liberating the country, but that does not give them a divine right to rule forever. Political parties can come and go, ZANU PF can come but can also go and it is going - [Laughter] - but at the end of the day what we want is an acceptance that when ZANU PF is gone, Zimbabwe will always be there. You can do anything, but whether you like it or not, Zimbabwe will always be there.

Madam Speaker, all the political parties have agreed and we want again to make reference to the Global Political Agreement in relation to State organs and institutions and for the avoidance of any doubt, I am going to read Article XIII (13) of the Global Political Agreement so that it is quite clear to everyone and this is what we have set ourselves upon to do, the three political parties who constitute the Inclusive Government. It reads as follows:


13.1 The state organs and institutions do not belong to any political party and should be impartial in the discharge of their duties. This is what we want our security forces to be aware.

For the purpose of ensuring that all state organs and institutions perform their duties ethically and professionally in conformity with the principles and requirements of a multi-party democratic system in which all parties are treated equally, the parties have agreed that the following steps be taken:

a) that there be inclusion in the training curriculum of members of the uniformed forces of the subjects of human rights, international humanitarian laws and statute law so that there is greater understanding and full appreciation of their roles and duties in a multi-party democratic system. Madam Speaker, the parties agreed to this because we know that among some members of the uniformed forces, they need a paradigm shift. They do not understand what is a multi-party system, you actually hear some of them saying ZANU PF Ichatonga kusvikira madhongi amera nyanga. You can not have that Madam Speaker - [AN HON MEMBER: Ehe, tichatonga]. The article goes on to say;

b) Ensuring that all state organs and institutions strictly observe the principles of the Rule of Law and remain non-partisan and impartial;

c) Laws and regulations governing state organs and institutions are strictly adhered to and those violating them be penalised without fear or favour. In other words Madam Speaker, we already have the instrument in place, all that we need to do is to implement the provision of the Global Political Agreement.

Lastly but most importantly, "recruitment policies and practices be conducted in a manner that ensures that no political or other form of favouritism is practiced". Already Madam Speaker, we have got the instrument in place, all that we need is to agree in this august House that it must be implemented and as such we must therefore support the resolution which is quite clear in this motion which state as follows:

Now, therefore, this House condemns the unconstitutional and treasonous statements that bring into disrepute the professional institutions of the Army and the Police. Already my colleague has referred to the Defence Act and the Police Act. All the things are stated here, quite clearly and all that we need to do is to ensure that members of the Armed Forces adhere to those hallowed principles. It also says that we in this august House, request the relevant institutions to reaffirm their loyalty to the Constitution and the laws of Zimbabwe and all what we are asking for is a situation where our Defence Forces Chiefs are told that they must choose - if they want to continue serving those institutions, they must be, neutral, they must be apolitical, they must not belong to any political party. Notwithstanding that they were part of the liberation struggle; the purpose of the liberation struggle was to make every Zimbabwean free, to make every Zimbabwean capable of choosing a government of their own choice.

Before I conclude Madam Speaker, I would like to say that security reform is imperative. It is necessary for us to be able to move forward as a nation. Madam Speaker, I want to say that we are always being accused that we want to effect regime change, I want to state here loudly and clear that a regime change agenda is not a crime. Any serious political party, particularly the Movement for Democratic Change was formed to effect the regime change - [HON. MEMBERS: Hear, hear] - and we have no apologies, what we have also emphasised is that we will do it peacefully. We will not do it through the barrel of the gun, but we will do it using a ball point pen where we have told our supporters to go to the ballot box and say Chinja Maitiro and say Hezvo uko. I thank you Madam Speaker.

THE MINISTER OF CONSTITUTIONAL AND PARLIAMENTARY AFFAIRS: Madam Speaker, these motions are weight motions and I am sure hon. members will want to give themselves time to look into them and to respond in a manner befitting of hon. members. I move that the debate do now adjourned.

Motion put and agreed to.

Debate to resume: Thursday, 14th, July, 2011.



THE DEPUTY SPEAKER: Order, order, hon. member.

MR. MUDARIKWA: On a point of order Madam Speaker, you promised us that we were going to debate on this subject matter today, we can use the game of numbers but your office is honourable and you explained to us that we were going to debate on these issues...

THE DEPUTY SPEAKER: Order, order hon. member, yes I said I was going to give you the chance to debate, but I did not say the time, it can be tomorrow, it can be next week.

Motion put and agreed to.

The House accordinglyadjourned at Twenty-Three Minutes past Six O'clock p.m.


[1] Oral Evidence Given by Hon. P. Chinamasa

[2] Report Submitted to the Committee by Hon. P. Chinamasa, Page 3


[3] Board Minutes of 1996

[4] Report Presented to Committee by Hon P Chinamasa pg 7


[5] Oral Evidence by Hon P Chinamasa


[6] Oral Evidence from Mr Mutumwa Mawere


[7] Page 18: Report Submitted to the Committee by Hon P Chinamasa.


[8] Oral Evidence from Hon P Chinamasa.


[9] Oral Evidence from Hon P Chinamasa

Last modified on Friday, 22 November 2013 14:56
National Assembly Hansard Vol. 37 NATIONAL ASSEMBLY HANSARD - 13 JULY 2011 VOL. 37 NO. 37