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NATIONAL ASSEMBLY HANSARD - 4 SEPTEMBER 2012 VOL. 38 NO. 52

Tuesday 4th September, 2012.

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

 

PRAYERS

(MR. SPEAKER in the Chair)

ANNOUNCEMENTS BY MR. SPEAKER

OFFICIAL OPENING OF THE RESEARCH AND INTELLECTUAL EXPO 2012

MR SPEAKER: I have to inform the House that the Minister of Higher and Tertiary Education, Hon. Mudenge is inviting hon. Members of Parliament to the official opening of the Research and Intellectual Expo 2012, on Wednesday 5th September 2012, at the Harare International Conference Centre at 0900hrs.

Invitation cards have been placed in individual Members' pigeon holes. The Expo will be officially opened by His Excellency, the President, Cde. Robert Gabriel Mugabe. For more information, please contact Public Relations Department, Room No. 4, 3rd Floor Pax House.

BREAKFAST MEETING ON THE WOMEN'S COUNCIL BILL

MR. SPEAKER: I also have to inform the House that the Secretary for Women Affairs, Gender and Community Development is inviting all Members of Parliament to a breakfast meeting on the Women's Council Bill on Wednesday 12th September 2012, at the Pandhari Lodge starting at 0830hrs. The purpose of the meeting would be to get input from stakeholders for the final draft of the Women's Council Bill.

BREAKFAST SEMINAR ON OVERSIGHT BODIES

MR. SPEAKER: I also have to inform the House that all Members of the Public Accounts Committee, the Portfolio Committee on Defence and Home Affairs and the Portfolio Committee on Justice, Legal, Constitutional and Parliamentary Affairs are invited to a breakfast Seminar on Oversight Bodies to be held at Meikles hotel tomorrow, 5th September, 2012. The workshop is being jointly organised by Parliament of Zimbabwe and Zimbabwe Lawyers for Human Rights and is starting at 0800hrs.

MOTION

BUSINESS OF THE HOUSE

MR. GONESE: I move that Order of the Day, Number 1 be stood over until the rest of the Orders of the Day have been disposed of.

MS. D. SIBANDA: I second.

Motion put and agreed to.

MOTION

REPORT OF THE FIFTH ORDINARY SESSION OF THE SECOND PARLIAMENT OF THE PAN AFRICAN PARLIAMENT (PAP)

MRS. MATAMISA: I move the motion standing in my…

MR. SPEAKER: Order! Can you press the microphone or probably resort to your favourite sitting place.

MRS. MATAMISA: I move the motion standing in my name that this House takes note of the Report of the Fifth Ordinary Session of the Second Parliament of the Pan African Parliament (PAP).

MR. MADZIMURE: I second.

MRS. MATAMISA: Thank you Mr. Speaker Sir, I will go back to my place, but I think I have been …

MR. SPEAKER: Order! May I remind hon. members that normally the front bench is reserved for Ministers and senior members of the governing political parties. -[HON. MEMBERS: Inaudible interjections] - Order! [AN HON. MEMBER: Havauye] - Order hon. members. Accordingly, I expect those Members who are currently occupying the front bench, that when the Ministers come, please pave way for them. I do not want a situation which I witnessed in the past where Ministers had to remain standing while back-benchers are seated in the front.

MRS. MATAMISA: Mr. Speaker Sir, thank you for reminding me where I rightly belong, a back-bencher and I am one. -[AN HON. MEMBER: And you will remain one.] - I stand up to present a report on the Fifth Ordinary Session of the Second Parliament of the Pan African Parliament, held in Midrand, South Africa, for this House to take note.

1.0 INTRODUCTION

1.1 This report is premised on the debates and presentations during the Fourth Session of the Second Parliament that took place at the Pan - African Parliament (PAP), in Midrand, South Africa from 9 to 21 May 2011.

2.1 The Report subsequently considers the Fifth Ordinary Session of the Second Parliament which also took place at the Pan - African Parliament (PAP), in Midrand, South Africa from 03 to 14 October 2011.

The Zimbabwe delegation to the Fifth Ordinary Session consisted of the following Members and Staff of Parliament:-

1. Hon. J. M. Gumbo, MP and Fourth Vice-President of the PAP and Head of the Delegation;

2. Hon. Chief F. Charumbira, MP and Member of the Committee on Co-operation, International Relations and Conflict Resolutions;

3. Hon. P. Dube, MP and Member of the Committee on Rural Economy, Agriculture, Natural Resources and Environment;

4. Hon. Dr. K. Rugara, MP and Member of the Committee on Education, Culture, Tourism and Human Resources;

5. Hon. E. Matamisa, MP and Member of the Committee on Health, Labour and Social Affairs ;

6. Mrs. N. Sunga, Assistant Clerk on secondment to the Legislative Business at the Pan - African Parliament;

7. Mr. A. Masumba, Principal Research Officer and Personal Assistant to the Fourth Vice-President of PAP;

8. Mr. C. Gwakwara, Principal External Relations Officer and Secretary to the Delegation; and

9. Mrs F. Masunda, Principal Hansard Reporter on secondment to the Hansard at PAP.

2.0 SOLIDARITY MESSAGE FROM THE SPEAKER OF THE HOUSE OF ASSEMBLY ,THE RT. HON. JAMES WANI IGGA.

2.1 In his Opening Remarks, the RT. Hon. James Wani Igga, Speaker of the National Legislative Assembly of the Republic of Sudan conveyed sincere greetings to the august House from the President of the Republic of South Sudan, 1st General Salva Kiir Mayardit, the Commander in Chief of the National Army and the Chairman of SPLM. He registered delight over the support given to the will of the people of the Republic of South Sudan.

2.2 Hon. Igga reiterated the need for the Pan- African Parliament (PAP) to continue assisting the Republic of South Sudan in its quest to establish a democratic, transparent and accountable Government that is able to exploit the vast natural resources in the country.

2.3 He concluded by pledging the commitment by the people of South Sudan to cooperating with the Pan-African Parliament to establish institutions that can advance good governance, democracy and the Rule of Law in the country.

3.0 DIALOGUE ON YOUTH EMPOWERMENT IN AFRICA FOR SUSTAINABLE DEVELOPMENT

Mr. Gama Brahim Sileck, (Central Africa);

Mr. Obinna Nwoke, (Western Africa);

Ms. Jenny Mooteealloo, (Eastern Africa);

El Wali Moussa Zaoui, (Northern Africa); and

Mr. Ronald Lamola, (South Africa).

3.1 The invited Youth leaders reiterated the need for African countries to recognise the importance of youth in spearheading the development of the continent. They advocated for deliberate State policies that are aimed at empowering the youth through micro- business enterprises. There was consensus that the vast natural resources of Africa should be used to benefit the people of Africa. The youths also condemned the manipulation of the 1973 Resolution which was supposedly meant to protect civilians but was used pursue other imperialist agendas of the West in Libya.

3.2 It was noted that Youths constitute 52% of the African population, of which most of them live below the poverty datum threshold. It was therefore imperative that the youths can only claim their own empowerment if they are to survive in the current scheme of continental structures. The Youths reiterated the need to approach this issue now and set up structures that take cognisance of the existing opportunities for them.

3.3 The invited guests noted that Youth restiveness, militancy and youth related crimes are typical case studies to explain the negative implication of the failure to empower the youth. There was a call for Financial Institutions to grant revolving loans to the youths who have acquired entrepreneurial skills to be self employed. African Governments were urged to embark on aggressive infrastructural and industrial development projects for proper training to ensure sustainable development and reduction in poverty.

4.0 REPORT ON THE FACT -FINDING BY THE PERMANENT COMMITTEE ON COMMITTEE ON CO -OPERATION, INTERNATIONAL RELATIONS AND CONFLICT RESOLUTION: ON COTE D'IVORE

4.1 As per its mandate in the previous Session the Committee met and deliberated on the Peace and Security, situation in Cote D'lvoire.

4.2 The objective of the Pan African Parliament in initiating this Mission was to gather as much information as possible from within the Government, National political groups and civil organizations on the political situation on Cote d'Ivore in order to guide the Pan African Parliament in the performance of its consultative role within the terms of the instituting Protocol. The Mission to Cote d'Ivore met with the Director of Cabinet, Representatives of Political parties and Representatives of Ivorian League of Human Rights (LIDHO).

4.3 In its report and the subsequent debates in the Plenary Session, it was noted that there is need to address the insecurity in the country since the facts on the ground point to vast circulation of firearms in the country. The Mission observed that armed robbery, hold ups, rape and murder were rife in the country.

4.4 The Committee also recommended that there is need to investigate cases of human rights abuses by both sides of the conflict, resettle all the people who were displaced by conflict and address the levels of poverty and unemployment of Ivorian youths which was a major source of discontent in the country.

4.4 The Committee also recommended that there is need to appoint the various hierarchies of the security force to ensure that the country returns to peace and stability. The Committee noted that Parliamentary elections are scheduled to be held by December 2011 hence a conducive environment has to be set up for a free and fair election.

4.5 There is need to enhance democracy by the participation of Women in all sectors of the economy and political hierarchy. The ultimate aim being to achieve Gender parity at all levels.

4.6 Finally, there is need for massive international support to restore the devastated economy to its former status as an economic model of Africa.

5.0 REPORT ON THE FACT- FINDING MISSION TO THE SAHARAWI ARAB DEMOCRATIC REPUBLIC

5.1 The objective of the Mission held from 11 to 16 July 2011 was to obtain information from Members of Government, State organs, national political groups and civil society organisations on the issue of the decolonisation of the Western Sahara, in order to inform the Pan African Parliament in accordance with its consultative and advisory role and in line with the Protocol establishing the PAP.

5.2 The Mission recommended that there is need to strengthen advocacy on the plight of the people of Western Sahara by ensuring that the issue takes prominence on that the issue takes prominence on the agenda of all African Union Summits. There was also need to urge the African Union through its Peace and Security Council to urge its Members to impose sanctions or other appropriate leverage to force the Moroccan Regime to abide by the UN mandates that it has up to now disregarded.

5.3 The Mission urged PAP to speak out in condemnation of the ongoing human rights violations and abuses on the people of Saharawi by Moroccan authorities in the occupied territories .

5.4 PAP was urged to commend the Government and the people of Algeria for the continued support they have rendered to both the Saharawi people and their Government in exile.

5.5 In conclusion, the Mission advocated PAP to remain committed to the issue of Western Sahara until the long awaited referendum is organized in an environment which is fair, free and transparent.

6.0 REPORT ON THE FACT- FINDING MISSION TO LIBYA

6.1 The Pan African Parliament resolved on 16 May 2011 to send a Fact Finding Mission to Libya composed of Members of the Committee on Cooperation, International Relations and Conflict Resolution and the Committee on Justice and Human Rights.

6.2 This Mission proceeded at the backdrop of armed confrontation between the Government forces and protesters resulting in the deteriorating peace, security and humanitarian situation in Libya.

6.3 The objective of the mission, therefore was to gather as much information as possible from within the Government, different political groups, civil organisations and academics among others, on the peace and security situation in Libya to enable PAP to properly make recommendations and play its consultative and advisory role in terms of the Treaty Establishing the Protocol.

6.4 The Committee resolved as follows; that there was need for an immediate cessation of war in conformity with the AU Road map which (though during the period of the Session it was, maybe too late) :

i. It is pertinent to observe that the former Government of Libya, under the late leader Colonel Gaddafi, made it clear to the delegation that it was willing to meet its opponents and find an acceptable solution to the problem affecting the country;

ii. As pointed out by the Peace and Security Council of the African Union, the best solution was " to fulfill the legitimate aspirations of the Libyan people to Democracy, Good Governance and Respect for Human Rights, Achieve Sustainable Peace and Preserve Unity and Territorial Integrity of the Country" . It was therefore high time that the pro-Gaddafi forces and the Transitional National Council started negotiations immediately to form an Inclusive Government;

iii. Libya being a Sovereign State, it was imperative that Libyans decided their future democratically;

iv. PAP had continue to be engaged with the Libyan situation and consider a follow up Mission to Libya;

v. PAP had to be involved in national reconstruction mechanisms to reinforce national unity and preserve the integrity of Libyan citizens;

vi. In future PAP had to set itself to act timeously on events and conflict situations on the continent;

vii. PAP had to work with relevant organisations to ensure that rules and regulations relating to the protection of migrant workers are adhered to;

viii. PAP also had to be ready to respond to peace and security concerns on the continent within a reasonable time-frame. It was embarrassing for the PAP Mission to arrive in Tripoli three months after the conflict had started and worsened. Yet, it is important to note that similar missions from Europe and the United States of America had visited Libya less than one month after the conflict had started. This report takes note of the fact that the former Libyan leader was killed in an armed confrontation with the current leaders in the country , the National Transitional Council and NATO on 20 October 2011.

7.0 REPORT ON THE FACT- FINDING MISSION TO TUNISIA

7.1 The Pan-African Parliament resolved to send a delegation made up of Members of the Committee on Cooperation, International Relations and Conflict Resolution, and the Committee on Justice and Human Rights on a fact finding mission to Tunisia to gather information on the situation in that country following the Tunisian revolution in January 2011.

7.2 The objective of the Mission was to obtain information from Members of the Government, State organs, National Political Groups and Civil Society Organisations on the situation in Tunisia after the Revolution. The Mission was held from 10 to 15 June 2011 to inform the Pan-African Parliament in accordance with its consultative and advisory role and in line with the Protocol establishing the PAP.

7.3 The Mission recommended in respect of Tunisia, the way forward was as follows:

1. The PAP had to urge the African Union to assist Tunisia in its endeavour to achieve democratic governance and the respect of Human Rights for its citizens;

2. There is a need to ensure that the road map to election is adhered to in order to get back to Constitutional Government. In this regard, PAP should send an Election Observer Mission for the October 23, 2011 elections.

3. The PAP had to appeal for urgent Economic support to alleviate unemployment and poverty to avoid counter-revolution;

4. The media has a prominent role in the democratisation of the country by being objective, factual and unimpeachable. The Plenary then adopted the resolutions of the Reports.

8.0 ACTIVITY REPORT OF THE PAN - AFRICAN PARLIAMENT MAY TO SEPTEMBER 2011

8.1 In keeping with the regulation and practice of each Ordinary Session, the Hon. Idris Ndele, President of the Pan - African Parliament presented a summary of the activities of Parliament during the Parliamentary recess.

8.2 The activities included the following:-

i) Pan African Parliament took part in the African Union Summit in Malabo Equatorial Guinea where the President of PAP presented the PAP report to the Executive Council.

ii) The Bureau Members participated in the 10 day tour of duty each month to ensure that there is adequate monitoring of the decisions of the Parliament during recess periods.

iii) The Parliament was also represented at the Association of West European Parliamentarians for Africa (AWEPA) Seminar on the "Cooperation Strategy for African Development, Lessons from the experience of new Member States of the European Union". PAP was represented by the 4th Vice -President, Hon. Joram Gumbo.

iv)PAP participated in the Mediterranean Parliamentary Assembly meeting held in Croatia on 19 and 20 June 2011 represented by the 3rd Vice-President Hon. Hammi Larroussi.

v) The Bureau authorised the Secretariat to organise the first Consultative Meeting of the Secretaries -General of African Parliaments to establish a platform to promote dialogue and contact between the Pan-African Parliament and Heads of Parliamentary Administrations.

vi) In all its endeavours, PAP sought to strengthen its relations with international organisations, discuss the transformation of PAP and promote the African Charter on Democracy, Elections and Governance and increase the visibility of the Institution.

9.0 REPORT OF THE CONSULTATIVE MEETING ON THE TRANSFORMATION OF THE PAN-AFRICAN PARLIAMENT AND THE RATIFICATION OF THE AFRICAN CHARTER ON DEMOCRACY ELEECTIONS AND GOVERNANCE, OUGADOUGU-BURKINA FASO 14 AND 15 JULY 2011

9.1 The Fifth Ordinary Session of the Second Parliament deliberated on the fourth Regional Meeting on the Transformation and ratification of the Charter on Democracy and Good Governance which was held in Ougadougu, Burkina Faso.

9.2 The Plenary noted and discussed a wide range of topics which included the critical issues facing all African countries such as climate change , sustainable development ,the representation of women, poverty reduction, global economic crises and the need for Africa to find African solutions to African problems.

9.3 The Plenary noted that there was need to deepen democracy, improve development in Africa and ensure that African Union instruments that promote democracy are ratified and domesticated.

9.4 The Plenary took into account that the Provisions of Article 25 of the Protocol to the Treaty establishing the Pan- African Parliament, the PAP conducted a five (5) year self assessment since its establishment, with a view to reflect on its vision to be a Parliament with Legislative powers.

9.5 To achieve this strategic goal, PAP has resolved to advance the legal process of transformation with the development of a proposal for amendment of the Protocol. The process of transformation has the logic to propose a first phase limited statutory jurisdiction. The areas to include model laws, free movement of goods and persons, good governance, human rights, the environment, telecommunications and interconnection of the continent.

9.6 The second strategic axis is to demonstrate the relevance of a continental Parliament for the whole of the system of the African Union. The transformation process of the Commission of the African Union to an "authority of the African Union" with executive powers is an additional argument to push for the transformation of PAP.

9.7 The meeting concluded by expressing concern about the persistence of conflicts in African countries of instability that exist in several African countries of the Continent which pause a threat to the stability of African States. Parliaments need to assume, more than ever, their role on the continent in the prevention and resolution of conflicts, the maintenance of peace, stability, the promotion of democracy and good governance.

10.0 PRESENTATION ON THE "MOVE FROM AID EFFECTIVENESS TO DEVELOPMENT EFFECTIVENESS" BY PROFFESSOR BEN TOUROCK, MP-SOUTH AFRICA.

10.1 The Plenary received a presentation on the Millennium Development Goals and the need for Africa to develop its own mechanisms for development programmes rather than rely on donor driven programmes.

10.2 In his presentation, Hon. Ben Turock made a passionate plea for Africans to be owners of their own development programmes , if they are to achieve Millenium Development Goals (MDG'S). Africa has to discuss the problems within Africa and between Africa and the rest of the world. At the end of the development matrix, Africa should use its own systems - indigenous, domestic systems whenever there are International Relations and particularly Aid Relations issues.

10.3 In his conclusion, Professor Turock concluded that Africa must own its own processes and should not wait to be dictated upon by the Western World on best principles and practices in respect of Development Aid. Africa should not be a charity notion since it is endowed with natural resources which are heavily exploited by the Western world.

11. 0 RECOMMENDATIONS AND RESOLUTIONS

The Pan-African Parliament (PAP) concluded its Fifth Ordinary Session of the Second Parliament with a number of recommendations presented by its various Permanent Committees and adopted. The Committees proffered the following recommendations and resolutions:-

11. 1 COMMITTEE ON RURAL ECONOMY AGRICULTURE, NATURAL RESOURCES AND ENVIRONMENT

 

11.2 The Pan-African Parliament, recommended that Climate Change impacts are likely to worsen over time and Africa which is the most vulnerable region with the least adaptive capacity need to consider adaptation as the most immediate priority for the continent; and appreciated the efforts of the African group of negotiators under the United Nations Framework Convention on Climate change, the African Ministerial Conference on the Environment, the Commission of the African Union in developing a Common African position on the comprehensive international climate change regime beyond 2012.

11.3 The Pan African Parliament called for Observer role at the African group of negotiators under the United Nations Framework Convention on Climate Change, the African Ministerial Conference on the Environment and the Conference of African Heads of State and Governments on Climate Change.

11.4 Furthermore it was recommended that Parliamentarians need to be empowered with up-to-date and relevant information in order to ensure they continue to play a meaningful role in improvement of livelihoods as it relates to Climate Change.

12.0 COMMITTEE ON EDUCATION, CULTURE, TOURISM AND HUMAN RESOURCE

The Committee resolved to implement a synergy of action between all the players (UNESCO/BREDA, ADEA, Education Division of the African Union Commission) in order to positively influence those countries in conflict or post conflict situations on matters relating to education policies.

12.1 It also resolved to train the teachers for the purpose of adapting to the psychological needs of children traumatised by conflict- related violence, and give better attention to the vulnerable, particularly the handicapped, who need an infrastructure adapted to their needs.

12.2 The Committee also resolved to incite the National Parliaments to exert better control of resources allocated to the education sector.

13.0 COMMITTEE ON HEALTH

The Committee recommended that the PAP should engage National Parliaments on medicines regulatory harmonisation. At the end of the Plenary, the draft terms of reference for the PAP champions to engage National Parliaments in AMRH were adopted with the inclusion of the following salient points or inputs.

13.1 The development and advocacy for the adoption of model medicines law in line with the World Health Organisations recommended standards that will assist NEPAD Agency, the PAP and its collaborating partners in the implementation of the AMRH Initiative. To this end, a consultant should be engaged to develop the model law framework. Specifically, the model law framework will;

(a) assist African countries in enacting and or reviewing national medicines legislations;

(b) serve as a reference guide to African RECs in their efforts to harmonize medicines regulation;

(c) engaging Chairs and /or members of relevant national parliamentary Committees as a strategy on sensitisation of AMRH; and,

(d) that, the title of the project should read 'African Medicines Regulation Harmonisation' as opposed to the previous 'African Medicines Registration Harmonisation' and should be all encompassing.

14.0 RECOMMENDATION ON THE AFRICAN COURT ON PEOPLES AND HUMAN RIGHTS

The Plenary called upon all the African Union members to ratify the 1998 Protocol related to the African Court of Justice and Human Rights and at the same time to make the relevant declaration as required by article 34 (6) of the Protocol for the development of culture of respect for the human and people's rights on the African continent in respect to access to justice by individuals and NGOS

14.1 The Plenary encouraged the African Governments to materialise their political will for an independent continental court by signing the Protocol creating the African Court of Justice and Human Rights as a result of the merger of the current African Court of Human and People's Rights in Arusha and The African Court of Justice of the African Union based in Addis Ababa which will also have jurisdiction on criminal cases.

15.0 RECOMMENDATIONS ON MAKING INVESTMENT WORK FOR AFRICA: A PARLIAMENTARIAN RESPONSE TO "LAND GRABS"

In their role as legislators and monitors of government policy and guardians of the public good: the Plenary agreed to design an appropriate judicial system to protect the interests of local communities; introduce legislation to make it mandatory to have free, prior and informed consent of communities before investment contracts are signed. It also agreed to establish review Committees for business practices and activities; and to monitor compliance of business promises and the impact of investment projects.

15.0 It was resolved that Parliamentarians have an important role to play in encouraging Governments and investors to make contracts public. Contracts were to contain provisions that require transparency accountability from all parties. There is a growing global consensus in favour of contract transparency. It was observed that Liberia is leading the way and introduced legislation in 2009 requiring all concessions and contracts in the mining, agriculture, forestry an oil sector to be made public. Other countries should follow their lead in understanding the value of their natural resources and to be able to negotiate.

15.1 PAP urged Governments to establish and strengthen Centres of Excellence on Land, Agriculture and Natural Resources. International and regional frameworks that can serve as resources for guidelines on foreign investment (AU Land Policy Guidelines, FAO voluntary guidelines, World Bank principles, etc.). IISD has a model investment treaty that is a useful tool.

15.2 Two international processes have developed principles for responsible investment contracts. These should help guide the development of centres of excellence across Africa, including the promotion of alternative business models for agriculture with an emphasis on collaboration and the promotion of small-scale farmers.

16.0 CONCLUSION

During the official Closing Ceremony, the President of the PAP , Hon. Dr. Moussa Idriss Ndélé, expressed gratitude for the level of commitment by Members of the Pan- African Parliament and encouraged the Committees to continue producing informative reports and make follow ups on important resolutions. Hon. Ndele further thanked the youth who made presentations during the Plenary Assembly and urged Members of PAP to seriously lobby with their Governments to take heed of the plight of the youth whose future the continent will rely upon. Finally, he urged Members to continue lobbying with their Parliaments for the ratification and domestication of the African Charter on Democracy , Elections and Good Governance.

The next Session of the PAP, the Sixth Ordinary Session, was held in Addis Ababa, Ethiopia on 15 to 21 January 2011. On this note, I thank you Mr. Speaker.

MR. F.M. SIBANDA: Thank you Mr. Speaker. Before I proceed, I need to welcome you after a slumber, after a recess that has caused me rust. So, I welcome you though I have been seeing you outside Parliament. I welcome you that you have convened this Parliament for further deliberations. On that note, I also need to congratulate Prof. Jonathan Moyo, to have come after a long time -(laughter)- and I hope it is not a technical procedure that he comes only for one day and absconds for 20 days. I think now he has seen the sense that this Parliament needs people like him. I hope this time he shall not draw his salary without working for it. He must put a stop to his culture of absenteeism.

MR. SPEAKER: Order hon. member. I have recognised you to debate the motion I however allowed you to make those remarks.

MR. F.M. SIBANDA: It was just an opening to my introduction as I have already welcomed you my esteemed speaker, I also revert to why I am here. Once upon a time -( laughter)-Justice Bharat Patel said, "Human rights are seamless", that is to say, they are equal in stature and nature. When you violate one of these human rights, you violate all. Why I am saying this here, the former speaker has spoken about African governments about violation of human rights, good governance, so this report should fertilise us so as to improve our Parliament our country and so forth. I stand here to support the report …

MR. BHASIKITI-CHUMA: On a point of order Mr. Speaker.

MR. SPEAKER: What is your point of order?

MR. BHASIKITI-CHUMA: Mr. Speaker, the motion is a take note report on the PAN African Parliament to which the Hon. Sibanda is not a member and now he comes on to introduce new things which are devoid from the motion and even on the Order Paper, he is not a seconder and so, he is totally misdirecting himself.

MR. SPEAKER: There is nothing unprocedural about him debating. I was going to ask Hon. Sibanda to stick to the motion and make your contribution. Your point of order is overruled hon. member -(laughter)-

MR. F.M. SIBANDA: Mr. Speaker Sir, with your indulgence, allow me to develop my debate with due respect of this House. The former speaker, the mover of the motion has spoken eloquently about good governance. The PAN-African Parliament recommendations dwell much on good governance and the rule of law. Hence, I had to quote one our Justice Bharat Patel who said that human rights are seamless, that is to say they are equal in stature, in nature, be it political, civic, social, economic and environmental and these human rights have no seam. Therefore, I go with this report. Why am I debating? I got it last week and had time to study and some of my colleagues might not have seen it because pigeon holes are full of papers uncollected. That is why they can not follow my debate. Therefore, I have a judicious right to debate any motion that has been moved by an hon. member.

There is a missing link that I discover in the report; the report speaks loudly on the human rights but not very specific violations were mentioned. Which ones were violated in Egypt, Tunisia and Libya? Why was this we call Arab Spring? Why did people revolt against their Government? The report does not show equally why? But however, they only mentioned in passing that human rights, we should specify exactly which human rights were abrogated, were violated so much that people were to spring against their government; In essence, it is a lesson that each Government in Africa should observe that sovereignty is driven from the people not from the elected people. The elected people are only facilitators of the sovereignty that is driven from the people. We do not want a repeat of what has happened in North Africa where thousands of people were killed because people wanted power, where children were killed because people wanted to cling to power for over 40 years and where people were deprived food.

Now I want to turn to 6.4 (2), the objectives of the Council was to fulfill the legitimate aspirations of the Libyan people to democracy, good governance, respect for human rightsachieve sustainable peace and preserve unity and territorial integrity of the country. So, these are the issues of good governance, where if people are pushed against the wall, they will react spontaneously to defend themselves as some people have mistreated a cat in a very small cabin. After being humiliated a cat can be very vicious and kill the perpetrator. So, let us also see why people in these countries like Saharawi Arab, Democratic Republic, Tunisia, Libya and Egypt reacted. So, this is the lesson; any historian learns in order to correct the foreseeable and the near future otherwise this is the reason why people revolt against their governments. In that respect, let us correct ourselves whilst the sun shines, let us not be overtaken. People should practice what they preach not to be rhetoric.

Coming to media, Hon. Matamisa spoke about the media and that the media should be independent. To those learned people in this country, media is the fourth arm of the State, which is not recorded anywhere, but they influence the policy makers, they influence the Legislature, Judiciary and the Executive. So, in Africa and particularly in our country, media should be independent, self regulatory be factual, and honest other than becoming propaganda machinery as what we saw in 2002 when Daily News was bombed by someone with us in this august House.

I refer this here to section 10.2, where they spoke very eloquently about Millennium Development Goals (MDGs). These MDGs will never be attainable and sustainable as long as Africa has violence, has intolerance, has poverty, has disease, has ignorance and lack of formidable information and crowned by "dictatorship". We will suffer the consequences of these ills. These are counterproductive to any developing world.

The Committee has spoken eloquently again about the youth of Africa, youth of Zimbabwe, youth of SADC, youth of the continent. The youth leaders reiterated the need for African countries to recognise the importance in spearheading the development of the continent. The former President of America, Leanda Johnson once said 'youth are flowers of today and seeds of tomorrow'. These youth should be nurtured, they should be given resources not land grabbing, economic indigenisation where they just grab things without resources. We should substitute indigenisation policy with "Juice". What do I mean about juice? I mean jobs, upliftment, investment, capital and ecology. Where on earth is everybody an entrepreneur or business person? What we should do is, we should streamline our economy where the means production are equally shared, so, that people do not grab other people's property.

This Constitution of Zimbabwe protects property rights, when you go against the Constitution of this country and best interests of the world, there will be no investment. Our youth in this world, in Africa and in Zimbabwe, they are crying for creation of job opportunities, investments, capital and ecology so that the land is kept as rich as it were found by Adam and Eve at creation.

I am challenging Members of Parliament to read this report and assimilate it so that we do things that are above board, where justice prevails, where law and order prevails. I rest my well researched document. Thank you Mr. Speaker Sir.

MS. D. SIBANDA: I move that the debate do now adjourned.

MR. MHASHU: I second.

Motion put and agreed to.

Debate to resume: Tuesday, 9th October, 2012.

ANNOUNCEMENTS BY MR. SPEAKER

WORKSHOP ON CONFLICT RESOLUTION

MR. SPEAKER: Women in Politics Support Unit and Zimbabwe Women Lawyers Association are inviting all members of the Zimbabwe Women Parliamentary Caucus to a workshop on Conflict Resolution and Constitutional Strategic Engagement Workshop to be held on the 13th to the 17th September 2012 at Mont Claire in Nyanga. The bus leaves Parliament at 1400 hours on 13th September, 2012.

NESTLE ZIMBABWE ANNUAL OPEN DAY

MR. SPEAKER: Nestle Zimbabwe is inviting all members of the Zimbabwe Women Parliamentary Caucus to their Annual Open Day on Friday, 7th September 2012 at 0900 hours. This will be held at Nestlé Zimbabwe Factory in Southerton and the bus will leave Parliament Building at 0830 hours.

JOINT CAUCUS MEETING

MR. SPEAKER: I also give notice that there shall be a joint Caucus on Thursday, 6th September, 2012 at 1000 hours in the House of Assembly at Parliament Building by Honourable K. Bhasikiti. Members from both political parties are invited to this joint Caucus on Thursday.

MOTION

BUSINESS OF THE HOUSE

MS. D. SIBANDA: Mr. Speaker Sir, I move that we revert to Order of the Day Number 3.

MR. MUTOMBA : I second.

Motion put and agreed to.

MOTION

FIRST REPORT OF THE PORTFOLIO COMMITTEE ON INDUSTRY AND COMMERCE ON THE AGREEMENT SIGNED BETWEEN THE GOVERNMENT OF ZIMBABWE AND ESSAR HOLDINGS LIMITED REGARDING NEW ZIMBABWE STEEL LIMITED

MR. MUTOMBA: I move the motion standing in my name that this House takes note of the First Report of the Portfolio Committee on Industry and Commerce on the agreement signed between the Government of Zimbabwe and ESSAR Africa Holding Limited regarding the New Zimbabwe Steel Limited (S. C. 26, 2012).

MR. HOVE: I second.

MR. MUTOMBA:

1.0 INTRODUCTION

The Portfolio Committee on Industry and Commerce conducted an inquiry into the Agreement signed between the Government and ESSAR Africa Holdings Limited (2011) regarding the Zimbabwe Iron and Steel Company (ZISCO), now New Zimbabwe Steel Limited. At its peak ZISCO produced one million tonnes of steel per annum and employed about four thousand people. Thus, concerned about the delay in the resumption of operations at this strategic entity in the revival of the country's economy, the Committee was compelled to conduct the inquiry.

2.0 OBJECTIVES

The objectives of the Committee's inquiry were as follows:

a) to find out what was stalling the conclusion of the Agreement

b) to have an appreciation of the provisions of the Agreement

c) to come up with recommendations for the commencement of operations at New Zimbabwe Steel Limited.

3.0 METHODOLOGY

3.1 The Committee held oral evidence sessions with the following:

a) Ministry of Industry and Commerce;

b) ESSAR Africa Holdings Limited;

c) Ministry of Mines and Mining Development; and

d) New Zimbabwe Steel Workers' representatives.

3.2 The Committee also considered the Agreement signed between the Government of Zimbabwe and ESSAR Africa Holdings Limited to create New Zimbabwe Steel Limited and New Zimbabwe Minerals.

4.0 FINDINGS

4.1 MINISTRY OF INDUSTRY AND COMMERCE

4.1.1 The Committee received oral evidence from the Ministry of Industry and Commerce on the tender for ZISCO that has since been awarded to ESSAR Africa Holdings, on the 17thof March 2011 and found out the following:

4.1.2 The new bidding process for the tender of ZISCO culminated in the signing of an agreement between the Government of Zimbabwe and ESSAR Africa Holdings Limited of Mauritius in March 2011.

4.1.3 The Agreement provides for a shares ownership structure of 54: 35:11 percent for ESSAR Africa Holdings Limited, the Government of Zimbabwe and Minority shareholders respectively. In addition to that, ESSAR Africa Holdings Limited is required to inject an initial amount of $US 750 million in fresh capital towards the revival of ZISCO. ESSAR Africa Holdings Limited is going to take over the Government of Zimbabwe's ZISCO related (internal and external) debt obligations amounting to approximately $US 340 million.

4.1.4 The Minister of Industry and Commerce highlighted to the Committee that ESSAR Africa Holdings Limited had to finalise negotiations with relevant government ministries over enablers, such as water, electricity and a railway line before the conclusion of the Agreement.

4.1.5 The Committee was informed that the Government of Zimbabwe was set to benefit from the Agreement through the resumption of operations at the steel plant, which would provide raw materials for the local manufacturing industry. About three thousand jobs of the employees at ZISCO were to be saved and the benefits would cascade to the families of the employees. Furthermore, the outstanding ZISCO debt would be resolved. The Ministry also reported that ESSAR Africa Holdings Limited had pledged US$ 5 million towards the Small and Medium Enterprises Development Fund and another US$ 5 million towards the Women and Youths Fund.

4.2 The Committee held another oral evidence session with the Minister of Industry and Commerce on the 28thof May 2012 and found out the following:

4.2.1 ESSAR Africa Holdings Limited has signed memoranda of understanding with the following government ministries:

a) Ministry of Finance over taxes and customs duties;

b) Ministry of Economic Planning and Investment Promotion over investment incentives;

c) Ministry of Water Resources Development and Management over water;

d) Ministry of Energy and Power Development over electricity; and

e) Ministry of Transport and Infrastructural Development over the railway line between Hwange and Redcliff.

4.2.2 The Minister of Industry and Commerce informed the Committee that the Ministry of Mines and Mining Development had not transferred the Buchwa Mine, Ripple Creek and Mwanezi iron ore mining rights to ESSAR Africa Holdings as at 28 May 2012. This was the major delaying factor to the conclusion of the agreement and the reason behind the salary freeze for the New Zimbabwe Steel Limited workers. The first official communication by the Ministry of Industry and Commerce to the Ministry of Mines and Mining Development over the transfer of the mining claims took place on the 6th of June 2011. The Minister of Industry and Commerce further explained to the Committee that the Mwanezi claims is partly a reserved mining area, while ownership of the other part is being contested by Roderick Mumbire in the courts. The Committee also learnt that the Mwanezi claims, with between 64 and 74 percent iron content is required to blend the low grade Ripple Creek iron ore for the production of steel. The Minister also highlighted that the Mwanesi claims had not been evaluated, while the Buchwa deposits are depleted.

4.2.3 The Minister of Industry and Commerce reported that Cabinet had resolved that the Minister of Mines and Mining Development should transfer the Buchwa, Ripple Creek and the twenty, undisputed Mwanesi mining claims to ESSAR Africa Holdings Limited, while awaiting the pending court judgment for the Roderick Mumbire claims.

4.2.4 ESSAR Africa Holdings Limited would fulfill its side of the contract after the conclusion of the agreement and transfer of ownership by the Government of Zimbabwe. The New Zimbabwe Steel Limited Board will also, effectively takeover from the old ZISCO board after the conclusion of the deal.

ESSAR AFRICA HOLDINGS LIMITED

4.3 The Committee received oral evidence from ESSAR Africa Holdings Limited officials on the 23rdNovember 2011 and found out the following:

4.3.1 ESSAR Africa Holdings Limited has not started operations at New Zimbabwe Steel Limited and is awaiting the official exchange and transfer of shares by the Government of Zimbabwe. The delay can be attributed to the audit of mineral claims included in the original ZISCO by the Ministry of Mines and Mining Development.

4.3.2 ESSAR Africa Holdings Limited has granted a US$ 6 million advance for workers' salaries to ZISCO from May to October 2011. However, due to speculation and uncertainty over the Government's position on the agreement, the salary advance has since been suspended. In addition to that, ESSAR Africa Holdings Limited has agreed to settle the ZISCO external debt. The Government of Zimbabwe has granted ESSAR a tax holiday in the initial period of its operations; meanwhile the government would be getting revenue from its shareholding and from royalties.

4.3.3 The Government of Zimbabwe and ESSAR Africa Holdings limited have reached an agreement on the beneficiation of the low quality, vast iron ore (less than 50% iron content) reserves in the country. Twenty percent iron ore reserves ownership is to be retained by the Government. The Agreement provides that ESSAR Africa Holdings Limited would test and explore the feasibility of beneficiation of local iron ore for a period of one and half years. ESSAR Africa Holdings Limited would also carry out feasibility studies of transporting beneficiated iron ore by rail and pipeline for export purposes. The Government has advised ESSAR Africa Holdings Limited to utilise both modes of transport as a railway line would be utilised by local miners to export their products, while telecommunication infrastructure can be put in the pipeline which do away with the need to roll fibre optic network around the country. ESSAR Africa Holdings Limited plans to build a large beneficiation plant in Chivhu, an investment estimated to be around US$4.5 billion, only after the completion of the feasibility studies, which is projected to be after a period of six years. The beneficiation project would be supported by a power plant to be located near the Hwange, Entumbane or Sengwe mining fields.

4.3.4 ESSAR Africa Holdings intends to bring a small number of experts into Zimbabwe to train staff in the initial stages of operations and would to a large extent make use of local skills. Operations at the plant would take up all the four thousand ZISCO employees. The investor will also bring technology which is not locally available.

MINISTRY OF MINES AND MINING DEVELOPMENT

4.4 The Committee received oral evidence from the Ministry of Mines and Mining Development on the 18thof June 2012 and found out the following:

4.4.1 The Ministry of Mines and Mining Development is ready to transfer the mining claims to ESSAR Africa Holdings Limited as per the Cabinet's approval and has officially communicated with the Ministry of Industry and Commerce on this position. The Ministry is awaiting ESSAR Africa Holdings Limited officials' approach for negotiations over the mining claims, a process to be guided by the Mines and Minerals Act, value of the iron ore claims and the non- exportation of raw materials policy. The Minister further informed the Committee that ESSAR Africa Holdings Limited can begin operations at New Zimbabwe Steel Limited with the Buchwa and Ripple Creek iron ore, without any formalities.

4.4.2 The Minister informed the Committee that the Ripple Creek ore has a 53 percent iron content that would give a life of 32 years production at a level of 960 thousand tonnes of steel per annum. Buchwa has about 15 million tonnes of high grade ore and the 17 Mwanezi claims have an estimate of 25 million tonnes of high grade ore.

4.4.3 The Ministry of Mines and Mining Development was excluded from the negotiation process of the ESSAR agreement and the inauguration ceremony of the New Zimbabwe Steel Limited. The Committee learnt that the agreement was only brought before the Cabinet when difficulties arose over the fulfillment of some of the provisions.

4.4.4 The Mwanezi iron ore reserves are for future development and cannot be transferred easily.

4.4.5 ESSAR Africa Holdings Limited does not dispute the valuation of the iron ore mining claims carried out by geologists from the Ministry of Mines and Mining Development.

NEW ZIMBABWE STEEL WORKERS REPRESENTATIVES

4.5 The Committee received oral evidence from the New Zimbabwe Steel Workers' Representatives on the 22ndof May 2012and the following issues were highlighted:

4.5.1 ESSAR Africa Holdings Limited suspended the salaries of the three thousand New Zimbabwe Steel Limited workers on the 4thof May 2012 due to the inconclusive agreement signed between the Government and ESSAR Africa Holdings Limited. The suspension of salaries had multiple effects which include: the failure of employees to pay school fees for children, provide for their families and pay back borrowed loans. Furthermore, the community could no longer access the water and electricity which could be accessed when the plant was operational. On the work front ill employees were being turned away without sick leave benefits; pension benefits and the life group cover of the employees are no longer being paid.

4.5.2 The employees required a long term solution to the continuous disruption of their salaries and clarification on the progress made towards the conclusion of the agreement. They also indicated the need for a survival plan whilst the agreement is being finalized.

4.5.3 The workers representatives informed the Committee that they were not involved in the agreement but were only invited to the inauguration ceremony of New Zimbabwe Steel Limited and were assured that the agreement would be concluded within a period of two weeks.

4.5.4 The plant had run out of scrap metal which was being previously sold to cater for the workers' welfare.

5.0 COMMITTEE OBSERVATIONS

The Committee made the following observations:

5.1 0There are a number of irrggularities in the Agreement presented to the Committee, which include: absence of a cover/title page, absence of ZISCO management board chairperson's signature, reference to nonexistent oinistries, among others.

5.2 Therå we2e differences in the presentations made by the Minister of Industry and Commerce and phe Minister f Mines and Mining Development on the izon content of the buchwa, Rypple Creek and Mwanezi claims.

5.3 The shareholding0is 80:20 percent between ESSAR Africa Holdings Limited and the Governmentof Zimbabwe respectively, in New Zimbabwe Minerals is grossly unfair.`

5.4 The inauguration of Ne7 zimbabwe Steel Limited was done before the conclqsmon of the agreement.

5.5 Two companies (New Zimbabwe Steel$Limited and New Zimb`bwe Minerals) were createf out of ZISCO. The Miniqter of Industry and Commurce agreed to the creation of Nev Zimbabwe Minerals, a mining company, without consulting the Minister of Mines.

5.6 There is consistent disruption of workers' salaries which has been worsened by the inconclusive agreement between the Government and ESSAR Africa Holdings Limited.

6.0 RECOMMENDATIONS

The Portfolio Committee on Industry and Commerce recommends the following:

6.1 The Executive should make an effort to be involved in the drafting of agreements.

6.2 All iron ore extracted by ESSAR Africa Holdings Limited should be for operations at New Zimbabwe Steel Limited, not for export in its raw form.

6.3 Government Ministries should consult amongst themselves before entering into agreements to avoid inconsistencies.

6.4 There is need to review the shareholding structure of New Zimbabwe Steel Minerals.

6.5 The agreement needs to be reviewed by all the relevant parties to the agreement.

6.6 In future draft agreements should be availed to Parliament for scrutiny before signing.

6.7 Workers' welfare should be prioritized in all agreements of a similar nature, in compliance with the labour laws of the country.

7.0 CONCLUSION

The Committee is disturbed that agreements of such high value are handled lackadaisically. Agreements should elicit contributions from all sectors and the country's interests should be an essential element of all agreements. The agreement should be reviewed to ensure that Zimbabweans benefit.

MR. HOVE: Thank you Madam Speaker. I am a member of the Industry and Commerce Portfolio Committee. I will begin my presentation with the following introduction:

As Industry and Commerce Portfolio Committee, we are not at all against Foreign Direct Investment in general, let alone in particular the choice of ESSAR. We are aware of the problems besetting our Industry and Commercial economy. There is a need for us as a country to tap into Foreign Direct Investment; this in turn should result in the increase in production capacities as well as profitability.

However, we note with concern the performance of the Ministry of Industry and Commerce in the execution of the ESSAR deal. In the course of our analysis and audit trail of issues pertaining to this deal, we were baffled with the level of shortcomings that we observed. Firstly, it was to do with the issue of valuation of ZISCO assets or ZISCO itself. ZISCO has got a plethora of assets in different forms and one of these that became apparent was, when coming up to the price that ZISCO was bid for, there is no relationship whatsoever, between the amount that was pegged for ZISCO and what it currently holds. The total deal for ZISCO amounts to about USD750 million, but when you look at the assets ZISCO Steel is sitting on, it runs into billions if not trillions of US Dollars depending on whichever figures you want to believe in.

When you are looking at coming up with a price for disposing ZISCO, a figure of US$750 million for a company that is worth -in conservative terms we are talking of several billions of American dollars. We begin to ask ourselves, what was the rationale in arriving at that discounted price? Maybe to some hon. members who are not part of Industry and Commerce Portfolio, I will give an analogue that can make us appreciate or understand the point I am trying to make. I could be indebted to you for about US$100 or even US$5. If I owe you US$5, that does not mean that the asset I have in hand, even if it is this cheap cell phone I am holding here [lifting up a cell phone] - it does not mean this cell phone is supposed to go for not less than US$5. In our instance, ZISCO owed a lot of money, about US$200 million or US$240 million or so with interest accrued, but that debt has no bearing with asset value.

As Industry and Commerce Portfolio Committee, we are worried with that kind of reasoning, where we just give away such a valuable national asset. Had ZISCO been subjected to a proper or professional valuation, I am sure it could have addressed the financial problems that our country is facing. It could not only have addressed the welfare of workers of ZISCO Steel, but also the country at large. According to the information we obtained, ZISCO is sitting on about 13 million tons of iron ore and a ton of unprocessed iron ore fetches no less than US$140 per ton. When you multiply 40 million by US$140, you will come up with about US$4.2 billion. That is unprocessed iron ore. You simply extract rocks from the earth then put it on the market fetching such an amount.

The figures that we obtained during our investigations run into not less than 30 billion tonnes of iron ore. If those estimates are accurate, we multiply by US$140 per tonne and we obtain US$4.2trillion. I am saying between US$4.2 billion and US$4.2 trillion, it can address all our national debt and still leave us with money to finance our infrastructure development, pay civil servants, tar every road including our garden parts in rural areas. We can put dual carriage ways with that kind of money. We do not even need to focus on diamonds, not that diamonds are not supposed to be mined. Had it been that the issue of ZISCO has been handled well; it could have addressed our financial problems as a nation. Dealing with such a high-value asset, we got worried when only the minister of Industry and Commerce would champion or involve himself in executing that deal by himself. As we were interrogating that deal, we noticed that it made reference to other government ministries, yet those ministries have not been involved in the negotiations of the structuring of that deal. That is a cause for concern which we need to present before the House.

The other issue that is also of concern to us as Industry and Commerce Portfolio Committee is on how transparent this bidding process was. For someone to come up with a figure, we begin to wonder now. We know there are several bidders that bided for investment or for partnering the Zimbabwean Government in ZISCO. This issue of the iron ore deposits, I think I would say and as Industry and Commerce Portfolio Committee, we believe sincerely that if the process of bidding for ZISCO had been transparent enough, the values that these investors offered, we would not have obtained a discounted value of US$750 million because we begin to wonder as to did this information of the iron ores that is now stalling the completion of this deal - the Mwenezi iron ore claims- had this information been availed to other bidders and if they were aware would they arrive at the price that ESSAR bided for. It is now a matter of conjecture. Were they aware of the size the quantities of iron ore from the geological survey reports?

There is also the other aspect that is of worry to us as the Industry and Commerce Portfolio Committee, the involvement of the Minister in the execution of the deal itself. It violates the corporate governance principles.

The Minister had delegated his authority of running ZISCO to a board of directors, yet at the execution of the negation of the deal we see the Minister's hand stronger than that of the board of directors who were fully aware of the issues resident within ZISCO or who are seized with the issues of the value of the asserts that ZISCO is sitting on. We now have a minister who takes a leading role in the sealing of the deal and this was quite evident in that the agreement that was presented to us, when we sought to see that agreement it did not have the signature of any of the board of directors yet they had been noted in the agreement itself, but they could not append their signatures and we never got a satisfactory response as to why they were sighted in the agreement yet they could not append their signatures. It is a cause for concern.

The other issue again is to do with the iron ore claims. We understand that ZISCO before its demise it was surviving or living on iron ore from Buchwa as well as Ripple Creek and we are looking at the capacity of ZISCO itself. ZISCO can process about a million tonnes of iron per year and Ripple Creek and Buchwa are still sitting on some reserves that can sustain ZISCO itself for not less than 18 years at 1 million tonnes of ore per year but we are amazed that sitting on such a reserve up till now nothing is happening, ZISCO is still dead. They are waiting for the seeding off of extra iron ore deposits in Mwenezi. Again, you begin to ask yourself how could the minister have agreed to those conditions that stall the bringing to life of ZISCO. Why would he allow that to, first of all, transfer extra ore when we are already sitting on something that can be accessed with no problems.

I also want to acknowledge that things are not well with our inclusive government. There is too much pulling, one in his direction and the other in the opposite direction. I will not also want to hide that or to sweep it under the carpet. I know there are differences amongst our ministers depending on which political party you represent and that is the hallmark of this Inclusive Government. My concern, that being the problem, our expectations would have been for ESSAR to kick start ZISCO operations with uncontested iron deposits at Buchwa as well as Ripple Creek. Right now ZISCO should have been processing iron ore while waiting resolution of the Mwenezi but that is not and we begin to ask ourselves why would ESSAR insist on first obtaining the Mwenezi iron ore deposits before kick starting or reviving ZISCO? When you look at the evidence that was presented, before you begin to understand the rational of ESSAR, ESSAR wants more iron ore deposits than ZISCO can handle and the reasons they have included in the agreement.

I will later on again touch the aspects that we discovered in the agreement. It is because ESSAR wants to move out unprocessed iron ore to be value added somewhere else other than Zimbabwe. That is the rationale. They were talking of building or constructing a pipe line to push the iron ore from Chivhu, I do not know whether it is via Nyanyadzi or Mwarahari into Save. I do not know how they are going to do it but they were talking of building a pipe line to flush out the iron ore as quickly as possible and that is the only motive.

Madam Speaker, as Industry and Commerce Portfolio Committee because I am speaking as a member here, I am of the opinion that all mineral ore deposits in Zimbabwe we should have a policy that they should never be shipped out of Zimbabwe in their raw format. They should be processed here. Value addition should take place on Zimbabwean soil and not for it to go and sustain economies elsewhere if we are to eradicate poverty, the lack which we are currently seized within our economy.

The other point, I had already indicated that one, is that the actual agreement had not been initialed in every page. The Minister had simply gone to append his signature at the end of the agreement. When we questioned that that is when he went on to initial every other page but we do not know if that initialing was also extended to the current agreement ESSAR has or is sitting on. We are not aware. What that means is that it exposes our government to further alterations to even more favours being shoved to the ESSAR side, if they are to go and change. I would have appreciated like what our co-Chairpersons of COPAC did, to sign every page such that even now if there are disagreements we can always try to locate where the differences are because they did not initial but they are penning their signature. The same thing should have been done with this kind of agreement. Each page should have been signed so that there would be no disagreement but you can pluck a page out and insert another page and still call it the original agreement and we have no basis to reject or to think otherwise.

The other point that again became apparent, there were misspellings that is ministry names were wrongly cited in the agreement. That led us to the conclusion that the agreement was not authored by our Government or representatives who happen to be the Minister of Industry and Commerce. There are about four ministries which were all given wrong names. It is unfortunate that I forgot to bring the agreement, I would have cited the exact names but none of those ministries exist. The four ministries that were cited in there where they have to sign the Memorandum of Understanding; and I am saying that agreement shows that it cannot be implemented because the characters that were signed there do not exist in our country.

I know we still insist that the deal is not dead and I do not wish it to be dead. Let me be very emphatic and clear from the onset that we do not wish that deal ill but we are really eager to see it go through. However, we are just highlighting errors of omission and commission on our part. Our Principals were invited to preside over the commissioning of that agreement, I will leave it at that because I would not want to give them my thoughts on what I would do, because in the private sector where I came from, I would have fired the Minister. That kind of performance is really a pain.

The other issue that came up as we were looking at this agreement was to do with Bhuchwa mine where there is some iron ore that has already been brought to the surface. It turned out that the Ministry of Industry and Commerce has been selling that iron ore and retaining the money. As we were about to go on our short break last time, I think the Ministry directly received about $5.2 million and this was not directed to ZISCO. When that information got to us, we summoned the Permanent Secretary of the Ministry of Industry and Commerce and she did admit but said they were in the process of taking the money back to ZISCO.

You may not see a problem with that but why would the Ministry involve itself in the affairs of ZISCO. Workers there have gone for months without pay and had we not discovered it, the money would probably have been taken somewhere. It is no wonder in our rural areas one of the chief actors in this game is dishing out bicycles, cattle and all sorts of things.

MR. NCUBE: On a point of order Madam Speaker.

THE DEPUTY SPEAKER: Hon. Ncube, what is your point of order?

MR. NCUBE: For an hon. member to raise a point that our President is stealing the money and dishing out bicycles, I think he must withdraw that -[HON. MEMBERS: Inaudible interjections]-

THE DEPUTY SPEAKER: Order hon. members. Let us have order in the House. Hon. Ncube, I did not hear Hon. Hove mentioning anyone's name so your point of order is overruled.

MR. HOVE: Thank you Madam Speaker, the issue we are seized with here is to do with the soul of our nation. Our country is richly endowed with resources and until we realise and appreciate that we are not poor; though I know history has taught us to believe that we are poor, I want to leave no doubt in everyone's mind here that we are poor by choice and not by design. People who have been favoured to manage the affairs of this country are not doing their job well. We are supposed to be clamouring for greater transparency and accountability. I was saying there is some iron ore that was stuck at Bhuchwa mine and I understand it is about 15 million tonnes of iron ore and of that 15 million tonnes, we were made to believe that something like two tranches of iron ore had been disposed of. The first tranche was disposed of and we do not know where the receipts went, but the second one for $5.2 million was paid to the Ministry of Industry and Commerce and the Permanent Secretary, The Chairman of ZISCO and the Assistant Director in the Ministry who is in charge of Parastatals all agreed at Hon. Mutomba's office where we had the meetings.

We are saying if that amount that came - I also sit in the Committee of Public Accounts and I know that one of the issues that were found problematic has been some money that is not finding its way into the consolidated revenue fund and here is one such example whereby a ministry, if it had not been discovered could have gone on to use that money as it wished, outside what we approved as a budgeted amount and then they make frantic efforts and we are still going to pursue the matter because we want to see evidence that the money was transferred back to the ZISCO account.

The other issue I want to lay before this House is that we found the shareholding percentage problematic. In the two companies that are emerging out of ZISCO, in one company they talk of the 60/40% which is the one that is seized with the iron ore into steel. Then the other one which has to do with the new steel mining company is 80/20%. I will not want to argue much on the 60/40%, not because there are no arguments, there are, but I want to go to the aspect of the 80/20%. This ratio favours ESSAR which is supposed to get 80% and we get 20% though we purport to be the owners of this country. Where is your ownership when you give away 80% of something that is unprocessed and just coming from the soil and you give it away? You pick a dollar and you say, you can take the 80cents and give me 20 cents. And you say I own, no, something needs to be done here. We cannot choose to remain silent when such a transgression has been committed. Neither are we saying the ESSAR deal should be reversed but surely it can be renegotiated given the many errors in it.

We should not be desperate to the extent that we just give away our valuable assets. We should not be that desperate. In any case we have come to the conclusion that the agreement was not authored by our Government representative who happens to be the Minister of Industry and Commerce has treated us unkindly. Why should we be generous to a world that has been unkind to us? Why should we be? We have something, we are not approaching them with nothing, and we have something valuable. Let us meet there in an arm's length deal. That is all we are saying. Whether it is look East or look West policy, let us engage them at arm's length basis. In that way we will regain our integrity, status, identity and even our sovereignty.

I want to conclude my presentation by saying this ZISCO ESSAR deal represents the sum total of our national opportunities lost. I am proposing that deals of such nature should not only be handled by members of the Executive, but should be availed to this august House for scrutiny. Some of us do not only have the time, we also have the skills. We will do our nation a great service. We will not even ask or demand an extra pay for scrutinising those deals for our executives. We will not even demand a cut from those deals. We will simple be doing a service that we have committed ourselves. We will be providing a service to our nation that we took when we chose to be Parliamentarians.

We do not what to be part of the executive. I in particular, I am simply speaking as a back bencher. When I lay my mind or put my eyes on such agreements, I do not want to be misunderstood. I am not trying to be part of the executive, all I want is a better deal for our people, that is all.

ZISCO right now is a sorry state. When you go to Zvishavane, Mashava, it is a sorry state. We cannot continue creating ghost towns. We cannot continue creating shell cities where there is no economic activities. We closed Mashava and Zvishavane as if there is no asbestos in the ground there. Right now we are closing ZISCO, not to talk of Mhangura, Kamativi and all other places. Bindura is under closure, we are closing cities. Mutorashanga, examples are many and plenty. I am saying deals to do with our minerals in particular should be scrutinised by this Parliament before signing.

Hon. Mudarikwa, the only instance that I agree with him, he once asked a question to Prof. Mutambara here, our Deputy Prime Minister. I agree with him. I want to repeat that statement maybe differently, but in the same thrust, that deals of this nature should be presented to this House for scrutiny and we will advise the Executive accordingly for no extra charge or pay and our nation will benefit.

With these remarks I want to thank you Madam Speaker and hope that our executive will see sense and take the opportunity of this impasse that is there to open up this deal for refinement and polishing up to ensure that we get a better deal. I thank you.

MR. CHIKWINYA: May I thank the Committee which has presented the report to us through their Chairpersons. May I take this opportunity to thank the previous hon. Members who have spoken before more, who so much spoke so eloquently about the proceedings of the ESSAR deal?

Madam Speaker, I stand before you as a Member of Parliament who represents a constituency that border Redcliff. Redcliff is the constituency that houses ESSAR. That is where the plant ZISCO Steel is located.

Mbizo Constituency provides dormitory facilities to some of the workers that are engaged with ZISCO Steel and therefore, I am quite aware of the problems that bedevil the workers at ZISCO Steel, because they are also at my door steps. The deal before us as presented by the report and actually as it, is in the public domain represent three phases. The deal before us has the good, bad and ugly.

It is now in the public domain that two weeks ago on a Thursday the Board Chairperson of ESSAR made representations to the Head of State, the President himself that in the face of the goings on currently within the ESSAR deal he had been instructed by the Board to come and bid farewell to the nation of Zimbabwe, therefore, meaning they are pulling out of the deal.

I want to believe that in His wisdom the Head of State made assurances that something could be done and I think there was still time for the Government and ESSAR to renegotiate. It is my hope speaking from the plight of workers that something can be done soon to save the ESSAR deal from collapsing.

If I speak to the good of this deal, I see that Zimbabwe within the opportunity of inclusivity had managed at least to attract a major or one of very huge investment in as far as foreign direct investment is concerned. This was supposed to give positive signals and a positive message to the outside world that Zimbabwe in its current state is now able to engage with international community to strike such a deal.

We have present within us various sources of mineral, natural resources within which we can strike deals of such magnitude. The fact that we had entered into this ESSAR deal with a company reputable within the Eastern and Western world we could have presented our self with that image that Zimbabwe is ready for investment. That is part of the good thing about the ESSAR deal.

Another good thing with the ESSAR deal is that it will bring with it poverty alleviation not only to the workers of ZISCO Steel, but there are subsector industries that depend on steel. There is construction which actually takes its opportunity on steel on low prices. Once we have low prices of steel, that stimulates construction of so many buildings that are currently on line at plan level, whose plans have been approved but they cannot be implemented because the price of steel is actually on the high side.

We had managed to get an opportunity to actually drive confidence across all the sectors in terms of investment. We had managed to create an opportunity whereby we are going to recreate employment not only again within the ex-employees of ZISCO Steel and those who are currently not engaged in ZISCO Steel, but all those who were going to benefit within the subsector development of all other industries which bank upon the steel industry.

Economies like Germany, South Africa, China are actually dependent to a very large extent, upon steel production and it is by no means a coincidence that Zimbabwe or even Rhodesia then had its greatest chunk of development actually pinned upon the production of steel and most importantly it was ZISCO Steel.

Madam Speaker, I will move on to the bad part of the deal. The fact that the two hon. members have highlighted issues of poor cooperate governance as exhibited by the various ministries or individuals from ministries as they involve in this deal, does not give credence to our nation. It is quite a pity that we Parliament, we have Cabinet and we have the Judiciary. We are all talking about this deal, but we know the individuals and we have not even set up a Commission of enquiry to actually pin the individuals down so that we set up a good precedence. The hon. member who spoke just before me spoke of issues to do with hand outs which are now being given in the communities which can easily be traced to a player who was involved in the ESSAR deal. It does not take a rocket scientist to actually trace the footsteps that this is where the resources are coming from, and it is actually going to be my recommendation that a commission of enquiry be set up to independently verify, how ESSAR deal was done from its inception? We have got lessons to learn from such major important signatures that we need not to repeat it next time. Right now we are making recommendations that Parliament should be involved in such deals, but we need not to only go there. The Executive obviously have got their functions, the Parliament has got its function as well as the Judiciary. So, findings and recommendations of a Commission of Enquiry will tell us exactly what to do, when to do it and how to do it when dealing with such deals. Such deals are going to come and they will be more of them. Madam Speaker, we were exposed in terms of our foresight as a Government. Figures have been thrown out by the previous speakers that Zimbabwe in terms of the iron ore body we are looking at something around 30 million, with values of about 4.2 trillion, but we have sold out one of our major assets at a tune of US$750 million. Is that how this Government should actually be seen to be doing? We are proud to be one of the highest literate nations not only in Sub Sahara, but in Africa and indeed in the international community. Are we producing leadership that is commensurate with our literacy rate? Are we providing leadership that also exhibits that we have Professors, we have doctors who are sitting in our Executive? Madam Speaker, we have created a bad national image amongst ourselves we have created an image that if you are a good thinker you can go to Zimbabwe and take their resources without them knowing. You can go to Zimbabwe in the middle of the night and pay someone one or two dollars and take a chunk of their resources without them knowing. That does not give a good image to all of us. We can not be visiting other countries where we become a laughing stoke that you are the people who sold an asset worth 4.2 trillion for 750 million. Madam Speaker, more glaringly and which is more painful to those who have interest to Government proceedings is that it has been actually proven that there is no inter ministerial communication within the Cabinet. What one ministry is doing, the other ministry does not do and does not know. The two or more ministries are supposed to be appending their signatures to one document at the end of the day. At one point we had the Ministry of Industry and Commerce doing what the Ministry of Mines do not know when the ESSAR deal was clinched upon what the Ministry of Mines was supposed to say at the end of the day. Commitments were made on behalf of the Ministry of Mines without the Minister and may be his Ministry knowing and therefore, it then made this whole deal to stall to take longer before it was agreed to and up to now nothing has been done. There is now inter-ministerial fighting where members of the same Cabinet will be sitting, one wonders when the President is chairing and they are talking of the ESSAR deal. Is it the fact that other Ministries in the same Cabinet or otherwise. Then most importantly I speak to the ugly part of t his deal is that as my dear colleague Prof. Moyo has put it has shown that we are a Mafia State. It has shown that we are so corrupt there is nowhere for any reason whatsoever one can actually append their signature in signing out a value of 4.2 trillion for a value of 750 million without something for them in hand. So, it is a matter of what is it for me as an individual and not necessarily for a nation. You would then want to ask yourself, why did the Minister of Industry and Commerce really put his nose in the forefront in defending a price of 750 million for an asset worth 4.2 trillion. Therefore, it collapses us into a Mafia State that I will agree with J. Moyo and not in COPAC. Madam Speaker, the ugly part of it is that there was no transparency at all. Actually the Inclusive Government, also exhibited by an Inclusive Parliament as we are, as we entered into this deal everything was supposed to be above board. The Committee was actually supposed to be involved as we started this deal ladies and gentleman. The community of RedCliff was supposed to know. Here we are ladies and gentleman we are exposed to this deal, we had other players Asia mete, we have the Chinese however, we have settled for this Company ESSAR who have a reputable track record, everyone should have moved with this deal from one stage to another. It was carried under the armpits of few individuals this is why we are having no agreement in sight. The nation then woke up when everyone had appended their signatures to a malfunctioning deal at the end of the day. I have spoken about bad national imaging. As we started this Parliament Madam Speaker, the Ministry of Tourism had a workshop on rebranding. Everyone was talking of the need to have a good image for the country. We all agreed, yes, we must not be violent. As Zimbabweans we must not be seen to be killing each other. If we want to rebrand we must be seen to be embracing each other in terms of peace and harmony living together but this bad national image debrands us in terms of international corporate image. This type of corruption debrands our image when it comes to doing business with other countries. Zimbabwe is currently ranked among 157 out of 159 countries in terms of the easy access to doing business. You would see that there are inherent systems that actually promote corruption. One Member of Parliament actually said the other time that, if you want to open a bottle store you would need 14 licenses. One license from the local authorities, the other license from the fire arms, the other from ZINWA; these are the kind of systems that actually promote corruption. Would you not have transparent systems that make it clear that when the Minister is signing the deal of this magnitude, the whole nation must be made to be aware. Madam Speaker, I will revert to the issue of the plight of workers and I m glad that Ministers were here present when the majority of this debate was being made. As they sit in Cabinet whilst they have sold out, in shona we say takaroodza mai ne zhara and ESSAR were so clever that they made this deal to become political. They gave carrots to the workers, they had a very colourful ceremony, they invited the Head of State, the Prime Minister, Deputy Prime Minister and invited the workers, gave them one, two, three months salary and banks were invited to open up shop. They gave loans to the workers of ZISCO Steel then ESSAR simply put cuts to all those benefits. Now, the workers are raising the heat from the ground even if we are going to stand here as Parliament. The reports point that this deal is a shame but from the Head of State downwards we can not go and say that this deal must collapse we can not. In essence there must be re negotiation if we are really supposed to safe guard the natural resources of this country, but now, the fact that the workers are starving they were given loans which they are now failing to pay. Yesterday Madam Speaker I was in Red Cliff, it is a sorry site for sure. Sewer is no longer flowing, the Red Cliff Municipality dependent on ZISCO Steel. They can not collect revenue from people occupying houses and water is being pumped from Kwekwe City Council. Now, we can not revert to say let everything start afresh. They first of all gave us sugar to taste and then sugar is sweet. It is like they have made us to become drug addicts. This is how exactly the Mafia works, they give you a drug, first time, second time, when you become addicted they stop and you start becoming a criminal in order for you to sustain buying the same drugs. Now the people on the ground will not even understand us to say that this deal is bad, when in essence, 3 or 4 years down the line, when the workers will really be enjoying their salaries and have a sober mind and relook at it, they will say this deal was bad. Look at the tonnage which is supposed to go to India for reprocessing. It is obvious that ESSAR can not hold on to all this ore at Mwenezi with only two furnaces running at ZISCO Steel or else for them to realise their investment in a space of about 5 years. They need to put up two more furnaces, otherwise they will realise their investment in about 10 to 15 years. What are they going to do, they are going to start pumping ore to India where they already have set up shop, they already have furnaces running which do not have raw materials. This is where we are found in a catch.

Madam Speaker, we are going to be exporting raw materials. One thing which the Government, in its inclusiveness, has managed to talk across all political divide is that let us beneficiate our minerals so that we can create jobs, value and create more money for the people of Zimbabwe. This is where all the empowerment is and this is where we sold out in terms of any empowerment strategies which we have entered into. One then wonders, how did ZISCO Steel escape the jaws of indigenization? Who was paid? It is one question to answer and it is for all of us to find out but if we had a Commission of Inquiry, all these things were going to be found out.

Why was Hon. Obert Mpofu left out as the Minister of Mines when Hon. S. Kasukuwere was involved in the ESSAR deal? We must all be able to be aware, where did Hon. S. Kasukuwere come in? Therefore we then see the indigenisation card played ball. Why was the Ministry of Youth given US$10 million when the workers had not even given their benefits prior as they were working because ZISCO Steel had actually taken on board all the debtors? These are the question which the Commission will then be able to give the answers to us.

So, you will find that we were given the drugs to become addicted but only a few individuals were benefitting. Be that as it may, I do not think that this House has a concrete wall in as far as making laws are concerned. Whilst laws can not work may be in retrospect, but we need at one point to put up our sober minds and relook at this deal. I am made aware by the grape vine Madam Speaker, that this deal has been given Cabinet approval today that it must go. Fair and fine we will see it from the papers tomorrow and from official communications but even if it has been given the go ahead and that the ZISCO Steel must now function, let us not celebrate the employment of workers and the other few mere benefits but let us look into the future as see how best we can safeguard our minerals.

Let us see how we can actually add value and how we can actually create employment across the whole nation because ZISCO Steel has got the capacity to do so. ZISCO Steel has got the capacity to turn Chivhu into another very major town, ZISCO Steel has got the capacity to turn Mutare into another big town.

So, Madam Speaker, I implore upon the Government, I implore upon the Cabinet Ministers, I implore upon the President and Head of State himself that we need again to re-sit down and actually implore upon these investors that you cannot come to this country and milk us away and leave us as poorer and poorer, only being workers. I thank you.

MR. NYAUDE: Let me start by thanking the previous speaker Hon. Chikwinya, for giving flesh to the vernal odour that surrounds this deal. I would have gone on and on speaking about the vernal odor surrounding this deal but he has done justice to it, so as Hon. Hove as well as Hon. Mutomba.

Madam Speaker, the duties that we are faced with as leadership are amongst other things, to be able to align external opportunities to what resources we have. This deal, if you have a look at it, in normal terms ordinarily, that will be a big deal for the country. We are looking at a deal that has got a face value of extracted ore, whose minimum is 2.24 trillion dollars. We should have seen a duty bearer responsibility in this deal by leadership to make sure that Zimbabweans benefit from this deal, Zimbabweans being the workers at ZISCO Steel, Zimbabweans being the workers at large, you do not see this in this deal. Because those who spoke before me have really touched most of the issues, I will bring to the attention of this House one issue that the Minister of Finance has raised consistently in this House; that is the lack of negotiating dexterity within those that we entrust to negotiate for and on behalf of Zimbabwe and we are told this deal has gone through the negotiations for a good 6 years Madam Speaker. This is your product at the end of 6 years. At the end of 6 years, the Indians were celebrating serendipity; they had made a very valuable discovery. They had come to a country where people could not negotiate, where people could not safeguard whatever essential resources, very strategic resources that they have.

They could just give it for a soul. You are talking here of 5.25 billion dollars versus a minimum of 2.24 trillion dollars.

Getting back to where the Minister of Finance has lamented about. I think what we lack as a country are people who can negotiate with the basic issues in mind which are the essential elements of a commercial transaction. In this deal, what you really see Madam Speaker, is the lack of a doctrine called animus contrahendi, which postulate that there shall be serious intentions which shall be expressed each to the other by the negotiating parties without any vagueness. If you go into this agreement, the ESSAR versus ZISCO Steel agreement, you then see vagueness rather than transparency. There is nothing clear in this deal to the extent that the Ministry of Mines has turned the Ministry of Mines, Forestry and Fisheries. The Ministry of Finance is misnamed, the Ministry of Energy is misnamed and that of Water is misnamed. At the end of the day Madam Speaker, is a deal that can be voided anytime because there has not been any clear intentions communicated clearly.

Madam Speaker, any deal has to have a legal basis, what is in legal parlance called de jure. Madam Speaker, this deal went on and on and on without the involvement of the Ministry of Mines. The Ministry of Mines Madam Speaker would naturally have had a big say in this deal but they were totally ignored. What the Minister of Industry and Commerce was trying to achieve, no one knows. What the Minister of Industry and Commerce was trying to get it, it is everyone's guess. It is absurd Madam Speaker that at that level, where you have to have people safeguarding the interest of the people, safeguarding your very precious natural resources, you have a care free approach, a 'they do thega approach. Madam Speaker, it is very unacceptable. Much as we want the ESSAR deal to go through, much as we want the ESSAR deal to benefit everyone, we can not do it against the backdrop of such an attitude; an attitude that would allow everything to go for a sale. It is very unacceptable Madam Speaker. Like the other speakers have said, this deal needs urgent review. It can not be allowed to sail through in its current form. It will be a total disaster for this economy because one would have seen a game changer in this deal regarding our economy. We are seeing things getting worse and worse. When you look at this deal Madam Speaker, at the time it was signed and everything was done, ESSAR would have gone without having to dream and think about the Mwanezi claims. ESSAR would have been able to manufacture a minimum of one million tonnes for a minimum of 25 years. Why they have not done that? It shows that they have been negotiating in bad faith. No wonder why the bicycles are being talked about, no wonder why the members are being talked about and no wonder why this deal smacks of venality more than business like attitudes.

Madam Speaker, we are in a Government of National Unity and one thing that is alarming in this set up is the lack of operational congruency. Everyone wants to do what they want because there is the impunity that comes with the GNU. No one fires anybody. No one has got the power to fire anybody because if this deal was done in other circumstances other than the GNU, heads should have rolled. Madam Speaker, I will urge the players in the GNU for the remainder of the GNU life to be able to practice the doctrine of id idem, to be at one. If you look at the Ministry of Finance, they did their part and approved. The Ministry of Energy, they did their part and approved. The Ministry of Water, they did their part and approved. The Ministry of Industry and Commerce were busy ducking and diving, they did not play their part. You look also at the Ministry of Mines, one wonders why they kept on ball watching, fence sitting when they know this Bill at some point in time came into the public domain, went out of the public domain, appeared in public domain and went out of public domain. They kept quiet until the last minute and they wanted to embargo the whole deal. This shows the lack of being at one. In a deal of this magnitude Madam Speaker, it is very important for all players to be at one and to be at one in this deal meant to have worked for the best interest of Zimbabwe and not personal individuals. This is exactly what you see in this deal, it is so self centric that you cannot say a minister got involved.

Madam Speaker, if you were to walk into the Ministry of Industry and Commerce and believe you me, this is very true, and ask the permanent secretary to produce a copy of the agreement between ESSAR, the Ministry and the ZISCO Steel, just say go into your files and produce a hard copy, you will not find it. Go into your system and produce a copy of the soft copy, you will not find it. This deal was so clumsily and careless executed Madam Speaker, that much as we want it to go through, much as we want to be Zimbabweans who benefit from their resources, if it is allowed to go through in its current form, Zimbabwe will be facing economic disaster. Like any other speaker has said, ESSAR will not have the capacity to handle all their operations locally. The intention right from the beginning, no wonder why the Indians were celebrating, was to export much of this mineral out of the country and will get Zimbabwe to get just the leftovers, the crumbles.

Madam Speaker, as a member of this committee, I am as shocked as my fellow members that we had a deal that got to be commissioned and we thought everything was okay yet speakers were worrying about the employees at ZISCO Steel. However, I am glad to say that it is heartening to know that the first people who noted that this deal was not in favour of Zimbabwe neither was it in favour of them were the workers at ZISCO Steel. We had a meeting with them and their representative clearly expressed most of reservations about the operations of ESSAR. They knew they were being taken on a wild goose chase. They knew the ESSAR people were after exporting the extracted iron ore resources much more than they would have wanted to carry out a process of genuine manufacture in Zimbabwe.

Madam Speaker, let me just conclude by saying what agreement we have today between ESSAR, ZISCO Steel and the Ministry is a deal that benefits ESSAR and no one else. It is a deal that is fraught with irregularities to the extent that at any given moment, Madam Speaker, ESSAR can march into a court and demand that this deal be voided and at the end of the day who losses is Zimbabwe and not ESSAR. I thank you.

MR. MADZIMURE: Thank you Madam Speaker. I just want to add my voice to this debate because it is one of those issues which brings in the open the issue of bad negotiation skills. Madam Speaker, from the onset, the Government of Zimbabwe should have set up a committee that included all the ministries that need a role to play in the resuscitation of ZISCO Steel. That was the first starting point. Secondly, Zimbabwe should have assembled its best brains as far as investment contract negotiation is involved. Thirdly, Madam Speaker, it should have been established which are the key ministries in this particular deal.

From the onset, when I heard of the deal, when I heard that we are going to have two companies, the first one being New Zim Steel which was almost ZISCO and the second one which was New Zim Minerals, the moment you talk of a company that will engage in mining, it is obvious that the Ministry of Mines should be involved. To the surprise of your committee Madam Speaker, when the two ministers appeared before the Committee, the Minister of Mines was emphatic that he was not part to the deal. What surprised the committee more was that the Minister of Mines is also a Cabinet Minister who sits in Cabinet and some of the issues we were told were discussed in Cabinet. That aside, Madam Speaker, the issue is any mining contract has to involve the Ministry of Mines. Yes, a manufacturing contract could have been dealt with by the Minister of Industry and Commerce but there are also fundamental issues which have to deal with the contract negotiation, the concepts that must be taken care of from the word go. It is the investor, Madam Speaker.

The investor comes with the finances and the technology. Then you also have got the State which has the resources and the state must be able to define its own resources. What is that the State is putting on the table? We also have got the community and the workers. In well negotiated contracts, the workers themselves negotiate their separate deal with the investor. You also have the civil society. Madam Speaker, civil society plays a pivotal role and it is another watch dog that we have. When the civil society pops its nose into some of these deals it is not done for malicious purposes but they help capacitate the affected people. In this case the affected people had some people negotiating on their behalf.

Then you look at the resources that were involved especially the 28%. Imagine the entire nation, Madam Speaker, taking 20% out of 2, 2 trillion dollars and you give a company 80%. The fact that the Minister of Industry and Commerce is a lawyer, who is fully aware of the implications of whatever we will have entered into. Madam Speaker the deal we have today exposes the lack-leisure manner in which the Government of Zimbabwe approaches the business of running this country. It was not going to be possible in a civilized society like what we have to enter into such a deal. Even if you are given money you must also look at the future of the country and say what legacy am I going to live.

Madam Speaker, I was shocked that the top of the Cabinet went to grace this occasion without really understanding what the implications were. Without saying a lot this is my own opinion, if the Executive was not compromised I think it is within its right to re-negotiate the deal. This has happened in several countries madam Speaker, Whilst the Banyamulenga lead by Kabila were fighting they were entering into an investment contract agreements with several countries but when they got to Kinshasa and started to put things into order, they realised that it was expedience, they wanted to get the support and win the war but the deals were not good for the people of the Democratic Republic of Congo.

At the moment they are busy negotiating a lot of deals. It happened in Libya, Madam Speaker, Gadaffi would just give deals but when the new government came in they canceled a number of deals and they are now re-negotiating. Zimbabwe for the sake of the people of Zimbabwe, yes we all believe the community around Redcliff would want to survive but for the sake of this country, to make sure that what we claim to be an endowment does not turn to be a case. The Government of Zimbabwe should re-negotiate the deal. What then alarmed me more was that before ESSAR had started their operations they were planning to build a pipeline to sheep the iron ore. Madam Speaker, we have always talked about beneficiation, value addition, creating more companies. If ESSAR did not have the capacity to do so then the contract should have been split, you give another company another contract, which is what we should have done. But as an advocate for anti-corruption I strongly believe there was an inducement to into this deal, anyone who tells me that there was no money that exchanged hands will not be honest.

There is no way we could have negotiated as the Deputy Prime Minister; Prof. Mutambara puts it "such a dump deal. We are a civilized society with very learned people but if this is the payment that the people of Zimbabwe get through the education, I do not wonder why we are in a mess in which we are because those people who are said to be so educated in Zimbabwe have messed this country and they are ruthless actually. Those are the people who have caused all the problems that we have. I think it is important and it is now time that they realise they should be remembered as the people who have costed the people of Zimbabwe. They appear to be so educated with their flowery language, playing with words but behind the words there is nothing; there is serious cruelty. - [PROF. J. MOYO - I hope there is something behind your words] - Muchikaranga vanoti kuvhunduka chati kwatara kunge uine katurike.

Madam Speaker, it is so sad that you find people frothing to defend things that they know they do not bring anything on the table for the people of Zimbabwe. I think it is high time that people take on Zimbabwe seriously and also take the business of running a country seriously because that is where you get poverty from; the people of Zimbabwe are hungry. All the deals we have entered into, especially during this time of the Inclusive Government, have not benefited the people of Zimbabwe at all. The same way we must re-negotiate 'the ESSAR deal, the same way we must re-negotiate the platinum deals, the same way we must re-negotiate the diamond deals.

Madam Speaker, if the people of Marange had been allowed to continue mining in their individual capacity and be asked to sell to the Minerals Marketing of Zimbabwe the diamonds they would have mined, the people of Manicaland would be so rich and the country itself could have benefited a lot. -[AN HON. MEMBER: Lawlessness] -Whoever said lawlessness does not understand what I am talking about. In Namibia, Jatropha is being grown by individuals who are selling to a company which then process diesel. Is it not empowerment to allow the people to use hoes to mine diamonds and sell it to a Government company and then the government company sells it? What is therefore then today apart from being re-located, being subjected to a completely different life. What is there for the people Chiadzwa? What is there for the people of Marange? During the time of the illegal mining there was vibrancy in Manicaland much more than we have today. It is a fact, those people who do not stay with the people, who are not on the ground, who are surrounded by technology which does not apply to those people on the ground will say "Umh".

Madam Speaker, I think it is important that we look at ourselves in the mirror and say are we really what we are seeing and if we doubt some of these things we have to do it over again. ESSAR will not get resources that are much as what we have in Zimbabwe and I think they will be reasonable to accept the proposal to re-negotiate and we will have a win-win situation. I think, Madam Speaker, we really need to have a re-look at this particular document and make sure that we negotiate and negotiate from a manifold point of view. What Hon. Nyaude was saying about the contract, how can you have a Government contract when all the ministries' names are completely different. What is the authenticity of such a document? The Ministry of water Resources Development and Management is sometimes just written Ministry of Water and all other things related to it are not included. The Ministry of Transport and Infrastructural Development is just written; the Ministry of Transport, the Infrastructural development part is not there, so where is the authenticity of that document? Were the people who negotiated serious about it? By going through page by page, you are a Zimbabwean negotiator, that is what you see and it does not ring a bell in your mind that the ministries are wrongly written. Madam Speaker, I think we have to be serious for the people of Zimbabwe to benefit from their resources, I think we have to re-negotiate this deal. Thank you.

MS. MANGAMI: I also want to add my voice to this motion raised by Hon. Mutomba about the ESSAR deal. I was listening attentively to those who debated before me and was pained. If ever there is not going to be an opportunity to look at the issues and consider them in the negotiations that will take place or have already taken place; I am afraid that one of our members has indicated that it has already been passed, but I hope there were amendments made. Looking at the ore that already exist at ZISCO, it has covered a lot of ground and right now most of the claims are not being mined. What it means to me is that there is already adequate ore around, where other members pointed out on why they did not make use of it at the moment. Is it that they want to exhaust all our ore in Zimbabwe, identify wherever it is? I am now afraid because, if there are other ore deposits in other areas, they are also part of the deal or you are actually saying it has to have a limited number. If the ore is going to be mined by ESSAR to get US$2.24 trillion and we get nearly US$5.4 billion, then our laws should be protecting our resources.

It is important that the ministry, through its advisors re-look at the deal and consider reducing the percentage which ESSAR is collecting. I have also been looking at the welfare of those who have been working under ZISCO, they are living in poverty. Right now, while people are taking time to renegotiate the deal, we are doing damage to their lives. Right now they are not able to send their children to school, some are now destitutes. Like the one Hon. Chikwinya had referred to, that they do not have flowing water on their water tapes. Previously they also did not have adequate accommodation and without running water right now, it is a very pathetic situation if one has to visit them.

I suggest that, whatever the agreements that the ministry did, should be looked into immediately in order to address the plight of the workers and rescue them from disease outbreaks. It is surprising that the working relationship of these ministries is not good. If a ministry is working without a good relationship with others, you would cite the ministry of Industry, where one is an end in himself looking at everything and saying 'you can make use of all the ores' as if the ministry is also part of the ministry of mines, it is pathetic.

I suggest that the minister, through other ministries should look into this deal and reduce the percentage which ESSAR is getting to at least 50 percent like other areas. I think our indigenous laws now say, at least 50 percent or more should remain with us. Thank you.

MR. NCUBE: Thank you Madam Speaker. I would like to thank the Chairperson of Industry and Commerce, Hon. Mutomba. Madam Speaker, this country has come to deals since 1980. The problem we have in this country is not that we do not have the best negotiators. There is no way, even if you go to the Ministry of Mines archives, where they say you pay for the value of the minerals underneath the ground. You only pay what you have agreed and you do not know the value of that mineral underneath the ground, it would just be guess work. That is why this deal was agreed on.

I tend to wonder, the Cabinet meet every time on Tuesdays, they have been discussing this deal and I do not think there is any ministry which did not know about the deal. I do not think the Head of State was going to ZISCO to officially open it without scrutinising the deal. We have the experts, who are there to advise the Head of State -[AN HON. MEMBER: Vanani?] - Whether you despise them but we have the experts -[AN HON. MEMBER: VanaJonah] - they are supposed to do that…[HON. MEMBERS: Inaudible interjections]-

THE DEPUTY SPEAKER: Order!

MR. NCUBE: For the Minister of Youth to get that US$10000, it was part of his negotiation skills because he wanted to help the youth of this country and the investor did, there is nothing wrong with that. The problem we have - the US$10000, if the minister negotiated with the investor, there is nothing wrong with that. There was money which was promised to the women from the Minister of Gender. The agreement which we have as the committee is maybe not the original one. Since the investor is not a Zimbabwean, maybe it was difficult for them to write the spellings, it was our duty to correct that.

As Members of Parliament, our role is oversight, we do not seek to govern, they do their decision, then as Members of Parliament we do our oversight. If we say now all the deals must come to this House for scrutiny , we are seeking to govern, no, we do not seek to govern, we are legislators, we do our oversight. Now we have the situation, where we need the workers to survive. The Government of Zimbabwe said the best thing is, even if we have lost, we have gone 80 or 20 percent but later on they knew that there was the Indigenisation Policy where they saythis 80 %which we are taking, we are going to get that 51%. Maybe it was a strategy so that you have the investor first. For us to say that we do not have an expert negotiator, I do not think it is proper because we need to look at all the countries whether they have any laws which demand that we must get so much percent. The other speaker talked about the diamonds and the gold, all the deals, if we are to revise, we need to go back to all the deals which were signed and renegotiate, not only about ZISCO.

Madam Speaker, where I support, especially Hon. Madzimure, is the issue of having a rail from ZISCO to Mozambique or build a pipe which will take our raw materials. It was when we got the information when we asked the management of ZISCO, that is when they revealed that they have agreed with the Zimbabwean Government, which the committee objected to. That is when we started demanding to see the agreement so that we can go over it. Of course, Madam Speaker, we can talk of the Minister of Youth getting US$10 000, what about the hon. members, what were you promised, why do you not reveal it? It is not about pointing figures. When you are living in a glass house you must not throw stones because we will expose you.

Madam Speaker, I think the Government of Zimbabwe tried their best under these difficult conditions, some of my colleagues may call them sanctions. They tried their best so that the workers may get something. I would like this deal to go through and I am happy that someone mentioned that the Cabinet today so it fit that the deal must go ahead. I thank you Madam Speaker.

MS. D. SIBANDA: Madam Speaker, I move that the debate do now adjourn.

MR. MAHLANGU: I second.

Motion put and agreed to.

Debate to resume: Tuesday, 9th October, 2012.

On the motion of MS. D. SIBANDA seconded by MRS. KARENYI, the House adjourned at Nineteen Minutes past Five o'clock p.m. until Tuesday, 9th October, 2012.

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National Assembly Hansard Vol. 38 NATIONAL ASSEMBLY HANSARD - 4 SEPTEMBER 2012 VOL. 38 NO. 52