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DE RUEHSB #0901/01 3200654
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R 160654Z NOV 09
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC 5137
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHAR/AMEMBASSY ACCRA 3170
RUEHDS/AMEMBASSY ADDIS ABABA 3282
RUEHRL/AMEMBASSY BERLIN 1709
RUEHBY/AMEMBASSY CANBERRA 2543
RUEHDK/AMEMBASSY DAKAR 2912
RUEHKM/AMEMBASSY KAMPALA 3330
RUEHNR/AMEMBASSY NAIROBI 5778
RUEHGV/USMISSION GENEVA 2462
RUEAIIA/CIA WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHEFDIA/DIA WASHDC
RHMFISS/EUCOM POLAD VAIHINGEN GE
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHEHAAA/NSC WASHDC

UNCLAS SECTION 01 OF 03 HARARE 000901 
 
AF/S FOR B. WALCH 
ADDIS ABABA FOR USAU 
ADDIS ABABA FOR ACSS 
NSC FOR SENIOR AFRICA DIRECTOR 
STATE PASS TO USAID FOR L.DOBBINS AND J. HARMON 
COMMERCE FOR ROBERT TELCHIN 
 
SIPDIS 
 
E.O.12958: N/A 
TAGS: PGOV PREL ASEC PHUM ECON ZI
SUBJECT: ZIM NOTES 11-16-2009 
 
----------- 
¶1.  SUMMARY 
----------- 
 
Topics of the week: 
 
Bennett's Lawyers Challenge Judge's Impartiality... 
Magistrate Who Jailed Prosecutor Forced Out... 
Outreach Campaign Focuses on Child Protection... 
Prison Guards Deny Medical Treatment to Abductee... 
MDC-T MP Acquitted of Rape Charges... 
Court Throws Out Charges Against ZCTU Leaders... 
Grain Marketing Board Tries to Borrow... 
Watchdog Unearths Massive Looting of State Assets... 
Old Mutual Slammed for Stake in Zimpapers... 
Loan from Meikles Saves Kingdom Bank... 
 
--------------------------------- 
On the Political and Social Front 
---------------------------------- 
 
¶2.  Bennett's Lawyers Challenge Judge's Impartiality...  On November 
12, the trial of Roy Bennett was further delayed as his lawyers 
filed a motion challenging Judge Bhunu's impartiality in handling 
the case.  Bennett's lawyers argued that while hearing the bail 
application of Bennett's alleged coconspirator Peter Hitschmann's 
May 2006, Bhunu remarked that the evidence against Hitschmann was 
"overwhelming.  Judge Bhunu will decide on November 16 if he will 
recuse himself.  Harrison Nkomo, a member of Bennett's defense team, 
believes Bhunu will jump at the opportunity to avoid dealing with 
the politically-sensitive case.  Hitschmann was acquitted and the 
prosecution now wants him to testify against Bennett on the basis of 
a confession which state security agents allegedly extracted through 
torture. 
 
¶3.  Magistrate Who Jailed Prosecutor Forced Out...  Chioniso 
Mutongi, the magistrate who jailed prosecutor Andrew Kumire for 
contempt of court during the trial of human rights lawyer Alec 
Muchadehama, has been forced to resign.  The Herald reported that 
Mutongi resigned on November 3, citing interference and intimidation 
by the Attorney General.  Mutongi said that subsequent to her ruling 
 she "had a torrid time and was entirely abused and harassed'' by 
the prosecution, but did not receive any protection from the Chief 
Magistrate, Hlekani Mwayera. 
 
¶4.  Outreach Campaign Focuses on Child Protection...  Over two 
million Zimbabwean children country-wide will benefit from a 
multi-media awareness campaign on child protection put together by 
Children First, in partnership with Population Services 
International (PSI) and USAID.  The campaign will feature a weekly 
radio-drama program broadcast on Radio Zimbabwe as its centerpiece. 
Broadcast over 26 weeks, the radio program will focus on children's 
rights and what they can do if their rights are violated.  The radio 
drama will be complemented by distribution of exercise packs that 
educators can use to guide discussions with children's groups.  The 
program was unveiled in two phases: The first was on October 21 in 
Harare and the second was on November 5 near Bulawayo.  Programming 
will be in both Shona and Ndebele. 
 
¶5.  Prison Guards Deny Medical Treatment to Abductee...  MDC-T 
Transport Manager Pascal Gwezere has still not received his 
QTransport Manager Pascal Gwezere has still not received his 
court-ordered medical treatment because of resistance by prison 
officials.  Gwezere was abducted by state security agents on October 
27, and according to his lawyers, has been subjected to severe 
torture during his ongoing detention. 
 
¶6.  MDC-T MP Acquitted of Rape Charges... The MDC-T MP for Kwekwe, 
Blessing Chebundo, was acquitted this week of charges that he had 
raped a 14-year old girl.  The MDC had argued that ZANU-PF was 
politically persecuting a number of its members, including Chebundo, 
 
HARARE 00000901  002 OF 003 
 
 
on trumped-up charges.  Chebundo defeated the notorious Defense 
Minister Emmerson Mnangagwa (ZANU-PF) in the March 2008 elections. 
Separately, Thamsanqa Mahlangu (MDC-T), an MP serving as the Deputy 
Minister of Youth, was acquitted of charges that he stole the cell 
phone of war veteran's leader, Joseph Chinotimba. 
 
¶7.  Court Throws Out Charges Against ZCTU Leaders...  On November 
12, Victoria Falls-based magistrate Richard Ramaboea threw out 
charges against Zimbabwe Congress of Trade Unions President Lovemore 
Matombo and four staffers.  The five labor leaders were arrested by 
the police on November 8 for violating the Public Order and Security 
Act (POSA) by not notifying the police of their intention to hold a 
public meeting.  The police detained the unionists for four days, 
before eventually charging them on November 12.  Magistrate Ramaboea 
berated the police and reminded them that the law did not cover 
trade unions. 
 
----------------------------------- 
On the Economic and Business Front 
---------------------------------- 
 
¶8.  Grain Marketing Board Tries to Borrow...  In an attempt to raise 
USD 2.5 million to purchase grain, the GOZ's former grain monopoly 
is trying to borrow directly from the market by auctioning 
three-month bills.  Bankers have told us they expect little demand 
for GMB paper, mainly because the state-owned enterprise is broke 
and does not have a business plan that makes sense.  An implicit GOZ 
guarantee behind GMB bills probably will not help much, since the 
GOZ is also broke.  The GMB currently quotes prices for corn that 
are significantly above world market prices.  After years of buying 
high and selling low, the GMB can no longer pay its employees or its 
creditors. 
 
¶9.  Watchdog Unearths Massive Looting of State Assets...  In a 
special report for the first quarter of the 2009 financial year, 
Zimbabwe's Comptroller and Auditor General (CAG) highlighted massive 
looting of state assets across a number of ministries. The report 
notes the recruitment of 10,277 youths who were added to government 
payroll in 2008 without following proper procedures, costing the 
state large amounts of money in wages. The CAG also found that about 
44 motor vehicles out of a large pool donated by Reserve Bank 
Governor Gono disappeared with top level officials in various 
ministries under unclear circumstances because of lack of 
documentation.  The same happened with regard to computers, laptops, 
and fax machines bought by Gono in a clear case of patronage. 
 
¶10.  Old Mutual Slammed for Stake in Zimpapers...  Old Mutual 
Zimbabwe, the local arm of South Africa's insurance and finance 
giant, has come under fire for its 18 percent stake in Zimpapers, 
the GOZ-controlled publisher of The Herald and other Mugabe-friendly 
publications.  From what we see in the press, the controversy began 
in South Africa, where human-rights organizations and trade unions 
have accused Old Mutual of "directly supporting the Mugabe regime." 
Qhave accused Old Mutual of "directly supporting the Mugabe regime." 
Old Mutual's holding in Zimpapers date back to before independence, 
when the firm held shares in the Rhodesian Printing and Publishing 
Company. 
 
¶11.  Loan from Meikles Saves Kingdom Bank...  The recent demerger of 
Kingdom Financial Holdings (KFH) from Kingdom Meikles Africa Limited 
has potentially negative consequences for Kingdom Bank in the medium 
to long term.  A managing director of one of the subsidiaries of KFH 
told us that the group only managed to satisfy the Reserve Bank of 
Zimbabwe's minimum capital requirements courtesy of a loan from 
Meikles Africa.  Apart from mobile telecom leader Econet Wireless 
and Meikles Africa, which moved their accounts out of the KFH group, 
the bank had reportedly not experienced any massive outflow in 
deposits.  But following the resignation of eight executives this 
month, clients may start moving their money out, which could trigger 
a run on the bank. 
 
 
HARARE 00000901  003 OF 003 
 
 
----------------- 
Quote of the Week 
----------------- 
 
¶12.  "Mutambara and the MDC-M are an extension of ZANU-PF.  What 
kind of party president would fail to garner more than 300 votes 
during last year's elections in Chitungwiza?  He is not worthy to be 
deputy prime minister."  MDC-T Secretary General Tendai Biti 
addressing a rally at Chibuku Stadium in Chitungwiza on November 8. 
 
 
 RAY