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FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC 3848
RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 2147
RUEHAR/AMEMBASSY ACCRA 2508
RUEHDS/AMEMBASSY ADDIS ABABA 2631
RUEHRL/AMEMBASSY BERLIN 1124
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RHEHAAA/NSC WASHDC
RHMFISS/EUCOM POLAD VAIHINGEN GE
RUEHGV/USMISSION GENEVA 1781
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHEFDIA/DIA WASHDC
RUEAIIA/CIA WASHDC

UNCLAS SECTION 01 OF 04 HARARE 001136 
 
AF/S FOR B. WALCH 
ADDIS ABABA FOR USAU 
ADDIS ABABA FOR ACSS 
NSC FOR SENIOR AFRICA DIRECTOR B.PITTMAN 
TREASURY FOR D. PETERS 
STATE PASS TO USAID FOR L.DOBBINS AND E.LOKEN 
COMMERCE FOR BECKY ERKUL 
 
SIPDIS 
 
E.O.12958: N/A 
TAGS: PGOV PREL ASEC PHUM ECON ZI
 
SUBJECT: ZIM NOTES 12-19-2008 
 
----------- 
¶1.  SUMMARY 
----------- 
 
This is the last edition of Zim Notes in 2008.  We will resume 
publication on January 2.  Topics of the week: 
 
-  Constitutional Amendment 19 Gazetted... 
-  Allegations of MDC Paramilitary Camps in Botswana Refuted... 
-  PF ZAPU Reemerges... 
-  New Attorney General Appointed... 
-  Shiri Survives Alleged Assassination Attempt... 
-  Auto Accident Injures Prominent War Vet... 
-  Still No UNSC Response to Zim Crisis... 
-  Cholera continues to ravage communities... 
-  Aussies roll out new sanctions... 
-  More Abductions and Journalists Threatened... 
-  Tear Gas in the City... 
-  Passports Elusive, Pricey, Easy to Forge... 
-  Back to the Billions... 
-  Stockbrokers Get Ultimatum... 
-  $900 Million Ought to Do It... 
-  ZESA Exporting Electricity to Namibia? 
-  ZINWA to Start Billing Some Customers in Forex... 
 
--------------------------------- 
¶2.  Price Movements-Exchange Rate 
and Selected products 
--------------------------------- 
 
Parallel rate for cash rose seven-fold for the second consecutive 
week to Z$500,000,000:US$1. 
 
Check rate is steady at Z$10 quadrillion:US$1 against inter-bank 
average of Z$925,825:US$1. 
 
Bread on the parallel market rose six-fold to Z$500,000,000. 
 
Sugar rose fifteen-fold to Z$1,500,000/2kg. 
 
Petrol and diesel rose six-fold to Z$100,000,000/liter. 
 
----------------------------- 
On the Political/Social Front 
----------------------------- 
 
¶3.  Constitutional Amendment 19 Gazetted...  On Saturday December 
13, constitutional amendment 19 was gazetted (published officially, 
beginning a 30-day period for public comment), without the consent 
and agreement of the MDC.  The MDC-T vowed to not allow Parliament 
to vote on the amendment until outstanding issues, including the 
allocation of ministries and governorships, are resolved. 
Nonetheless, South African President Kgalema Motlanthe told a press 
conference on December 17 that he hoped an inclusive government 
would be in place "this week."  MDC Secretary General Tendai Biti 
responded that he didn't know what Motlanthe was talking about.  See 
Harare 1127. 
 
¶4.  Allegations of MDC Paramilitary Camps in Botswana Refuted... 
SADC confirmed receiving a GOZ dossier on alleged paramilitary camps 
in Botswana.  The MDC has strongly denied the existence of such 
camps and accused ZANU-PF of using the allegations as a trumped-up 
pretext for initiating a new violence and intimidation campaign 
against it.  Botswana has also derided the GOZ claims.  On 
Wednesday, South African President Motlanthe told journalists he and 
SADC disbelieved the allegations. 
 
¶5.  PF ZAPU Reemerges...  PF ZAPU held a conference in Bulawayo last 
 
HARARE 00001136  002 OF 004 
 
 
weekend and announced the end of the 1987 Unity Accord.  The party 
elected one-time ZANU-PF Home Affairs Minister Dumiso Dabengwa as 
its interim president pending a congress next year.  ZANU-PF, which 
still maintains the allegiance of vice president Joseph Msika and 
ZANU-PF chair John Nkomo, rejected the split and stated that the 
ZANU-ZAPU alliance continues.  Dabengwa has indicated that PF ZAPU 
will support the MDC in its opposition to ZANU-PF.  Ironically, 
Zimbabweans will still "celebrate" National Unity Day on December 
22; the holiday was established in 1997 to commemorate the 1987 
accord.  See Harare 1131. 
 
¶6.  New Attorney General Appointed...  President Mugabe appointed 
Johannes Tomana as Zimbabwe's new Attorney General.  The MDC 
immediately criticized the appointment as evidence of bad faith on 
the part of ZANU-PF in implementing the September Global Political 
Agreement.  According to the Agreement, all senior government 
appointments should be made as a result of agreement between the 
President and Prime Minister.  The new Attorney General replaces 
acting AG Justice Bharat Patel who assumed his interim position 
after the dismissal of Sobusa Gula-Ndebele, who reportedly performed 
his job in an independent manner.  Tomana has been a strong ZANU-PF 
supporter.  As deputy attorney general, he advised the government in 
the run-up to the June election that it was legal to detain MDC 
officials and supporters without trial, and he ordered magistrates 
to deny bail in all political violence cases. 
 
¶7.  Shiri Survives Alleged Assassination Attempt...  Air Force 
Marshall Perence Shiri was reportedly shot in the arm when his 
vehicle was attacked on December 13 near his farm in Shamva.  The 
Government described the alleged assassination attempt as evidence 
of a "build-up of terror attacks targeting high-profile persons." 
Three Bindura MDC councilors have allegedly been arrested in 
connection with the shooting, although none have been charged or 
granted access to legal council.  See Harare 1128. 
 
¶8.  Auto Accident Injures Prominent War Vet...  According to The 
Herald, Vice President of the Zimbabwe National Liberation War 
Veterans' Association, Joseph Chinotimba, was involved in a car 
accident in Harare last week and is recovering at a private 
hospital.  Chinotimba helped orchestrate the infamous farm grabs 
that began in 2001.  Police are investigating the cause of the 
accident. 
 
¶9.  Still No UNSC Response to Zim Crisis...  In a UN Security 
Council meeting on December 15, the UNSC reviewed a written report 
by The Elders and heard from UNSG Ban Ki-Moon on the continuing 
humanitarian crisis. South Africa and others blocked efforts by the 
U.S. and UK to ramp-up the UN response to the Zimbabwe crisis. 
 
¶10.  Cholera continues to ravage communities...  The USG has pledged 
an additional US$6.2 million and sent a disaster response team to 
Zimbabwe.  Over three-quarters of the districts in the country are 
now affected by cholera. The ongoing epidemic has resulted in 20,896 
suspected cases and 1,123 deaths since August, according to the 
United Nations.  The World Health Organization continues to plan on 
a worst-case scenario of 60,000 cases.  To date, more than 5% of 
those afflicted have died from the disease.  See Harare 1129 and 
¶1134. 
 
¶11.  Aussies roll out new sanctions...  Australia added 75 new 
Zimbabweans to its financial and travel sanctions list this week. 
The list of names is not yet public.  See Canberra 1285. 
 
¶12.  More Abductions and Journalists Threatened...  Zimbabwean 
journalist Shadrack Andrisson Manyere was abducted on December 13 
and is still missing.  Lawyers petitioned the high court to order 
the police to investigate his whereabouts.  Just hours after his 
abduction, police went to his home and took his computer.  Police 
 
HARARE 00001136  003 OF 004 
 
 
continue to deny holding him.  The MDC published a list on Thursday 
of 30 abductees since October 29, with the most recent picked up on 
December 17.  Post is working to confirm the details of these 
abductions.  In a column on December 13, Nathaniel Manheru (the pen 
name of Mugabe's spokesman George Charamba) wrote a vitriolic 
article that threatened to expel journalists and accused several by 
name of working with an American "lady intelligence officer" - 
evidence of an alleged spying plot.  See Harare 1121. 
 
¶13.  Tear Gas in the City...  Riot police used tear gas to break up 
two protest marches this week in Harare.  Tear gas was also used to 
break up a brawl at ZANU-PF headquarters in the wee hours of 
December 16 when a fight broke out between supporters of Mining 
Minister Amos Midzi and Deputy Transportation Minister Hubert 
Nyanhongo.  The two were vying for ZANU-PF chairmanship for Harare 
Province.  Nyanhongo won the contested election.  See Harare 1132. 
 
¶14.  Passports Elusive, Pricey, Easy to Forge...  With Zimbabwean 
passport fees skyrocketing (currently US $650 for urgent 
processing), more and more are turning to illegal vendors to obtain 
the valued documents.  See Harare 1133. 
 
---------------------------------- 
On the Economic and Business Front 
---------------------------------- 
 
¶15.  Back to the Billions...  Approximately five months after the 
Reserve Bank of Zimbabwe (RBZ) lopped 10 zeroes off its currency, 
the RBZ unveiled new one, five, and 10 billion Zimbabwean dollar 
notes on December 19.  The new denominations followed an increase in 
cash withdrawal limits from Z$500 million once a week to Z$10 
billion once a month when presenting a pay-slip.  Economic analysts 
estimate that due to the 27 new denominations introduced in 2008, 
money supply growth could be nearing 500 million percent annually. 
 
¶16.  Stockbrokers Get Ultimatum...  The Zimbabwean securities 
commission gave stockbrokers until December 19 to provide the 
government with audited statements of their net worth before 
allowing them to resume trading activities.  Defaulting stockbrokers 
may be shut down or placed under judicial management.  The Zimbabwe 
Stock Exchange has been closed for nearly three weeks following 
central bank allegations of rampant unfunded trading on the 
exchange. 
 
¶17.  $900 Million Ought to Do It...  Mishek Sibanda, chief secretary 
to President Mugabe, announced on December 16 that it would cost US 
$900 million to revive Zimbabwe's battered manufacturing sector. 
The plan was crafted by a team of technocrats who estimated that 
even as capacity has fallen, current manufacturing utilization rates 
are only around 10 percent. 
 
¶18.  ZESA Exporting Electricity to Namibia?  Namibian press reported 
that as part of a deal between Namibia's state-owned energy utility 
NamPower and Zimbabwean utility company ZESA, ZESA had increased its 
electricity exports to Namibia in August from 120 to 150 megawatts. 
The exports are in lieu of repaying a US $40 million loan from 
NamPower to refurbish the Hwange plant. 
 
¶19.  ZINWA to Start Billing Some Customers in Forex...  In a first 
for a state-owned utility, the water utility company ZINWA has been 
granted a license to bill export businesses and NGOs in foreign 
currency.  Bills to non-exporting corporations and the mass consumer 
market will remain in Zimbabwe dollars.  The license is intended to 
allow ZINWA to purchase essential supplies such as water treatment 
chemicals and repair pipes that leak as much as half of all pumped 
water. 
 
------------------ 
 
HARARE 00001136  004 OF 004 
 
 
Quotes of the Week 
------------------ 
 
¶20.  "Just as I was being dragged to the UN Security Council to be 
put on the sanctions list, I was offered a job by the World Bank as 
senior vice president with the full blessings of none other than 
George Bush himself" - Gideon Gono, claiming that Ambassador McGee 
offered him the job during an August 2008 meeting, in his new book, 
Zimbabwe's Casino Economy: Extraordinary Measures for Extraordinary 
Challenges (available locally for a mere US$42). 
 
¶21.  "The call for an election is an honest submission that ZANU-PF 
is an illegal regime, [and] the June 27 election was illegal.  For 
the first time, we [applaud] ZANU-PF for acknowledging that they are 
not legitimate." - MDC Secretary General Tendai Biti on December 
¶17. 
 
 
DHANANI