VZCZCXRO9455
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSB #0142/01 0540716
ZNR UUUUU ZZH
R 230716Z FEB 09
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC 4080
RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 2208
RUEHAR/AMEMBASSY ACCRA 2646
RUEHDS/AMEMBASSY ADDIS ABABA 2768
RUEHRL/AMEMBASSY BERLIN 1242
RUEHBY/AMEMBASSY CANBERRA 2037
RUEHDK/AMEMBASSY DAKAR 2393
RUEHKM/AMEMBASSY KAMPALA 2817
RUEHNR/AMEMBASSY NAIROBI 5245
RHEHAAA/NSC WASHDC
RHMFISS/EUCOM POLAD VAIHINGEN GE
RUEHGV/USMISSION GENEVA 1938
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHEFDIA/DIA WASHDC
RUEAIIA/CIA WASHDC

UNCLAS SECTION 01 OF 03 HARARE 000142 
 
AF/S FOR B. WALCH 
ADDIS ABABA FOR USAU 
ADDIS ABABA FOR ACSS 
NSC FOR SENIOR AFRICA DIRECTOR 
TREASURY FOR D. PETERS 
STATE PASS TO USAID FOR L.DOBBINS AND E.LOKEN 
COMMERCE FOR ROBERT TELCHIN 
 
SIPDIS 
 
E.O.12958: N/A 
TAGS: PGOV PREL ASEC PHUM ECON ZI
 
SUBJECT: ZIM NOTES 02-20-2009 
 
----------- 
¶1.  SUMMARY 
----------- 
 
Topics of the week: 
 
- On the Political/Social Front PM, MFA Brief Diplomats and 
Donors... 
- New Ministers and Deputies Take Office... 
- UN Visit... 
- USAID Employee's Hearing Delayed - Again ... 
- Political Prisoners Remain in Custody... 
- More WOZA Arrests... 
- Cholera Response Assessment... 
- British "Evacuation" Raises Eyebrows... 
- Prices Keep Falling... 
- Civil Servants Start Receiving Hard Currency Vouchers... 
- Budget, Monetary Policy up for Review... 
- Trading Resumes on the Zimbabwe Stock Exchange... 
- Reserve Bank Suspends Steep Licensing Fee... 
- Harare's Landline Network in Shambles... 
 
----------------------------- 
On the Political/Social Front 
------------------------------ 
 
¶2.  On the Political/Social Front PM, MFA Brief Diplomats and 
Donors... Prime Minister Morgan Tsvangirai briefed donors on 
Zimbabwe's economic situation and presented emergency and short-term 
economic plans. He announced that civil servants would be paid in 
forex. Donors pointed out, and Tsvangirai acknowledged, that 
developmental assistance would depend on compliance with the 
principles of reengagement. See Harare 135. Foreign Minister 
Mumbengegwi briefed diplomats this week. His focus was on the 
lifting of sanctions as crucial to Zimbabwe's economic development. 
See Harare 136. 
 
¶3.  New Ministers and Deputies Take Office... On Thursday, President 
Mugabe swore in 20 deputy ministers (five more than contemplated by 
the Global Political Agreement (GPA)) and five ministers of state 
who were not agreed to in the GPA. With five ministers of state 
added last week to the cabinet when ministers were initially sworn 
in, there are now 41 cabinet ministers vice the 31 provided for in 
the GPA. The political agreement resulting in this will obviously 
place an additional burden on Zimbabwe's cash-strapped coffers. 
Notably, Roy Bennett, who remains in custody in Mutare, was not 
sworn in as Deputy Secretary of Agriculture. 
 
¶4.  UN Visit... Assistant Secretary General Catherine Bragg will 
lead a joint UN mission with representatives from UNICEF, WHO and 
WFP to Zimbabwe February 21 to 25. The mission's objectives include: 
gaining a better understanding of the humanitarian situation, 
response, and the operational challenges faced by humanitarian 
actors, while exploring methods of improving UN support. The mission 
will work with relevant government authorities to advocate for a 
less polarized humanitarian environment and unhindered access of 
humanitarian assistance. 
 
¶5.  USAID Employee's Hearing Delayed - Again... Frank Muchirahondo - 
charged with the attempted murder of the chief of Zimbabwe's Air 
Force - was to have had a court appearance before the Bindura 
magistrate Thursday for his attorney to request a trial date and 
receive the charging documents from the prosecutor. As was the case 
on February 12, yesterday's court date was postponed - both the 
Qon February 12, yesterday's court date was postponed - both the 
magistrate and the prosecutor were no-shows. The court date has been 
rescheduled to February 24. The Embassy continues to try to work a 
resolution to this case through back channels. 
 
 
HARARE 00000142  002 OF 003 
 
 
¶6.  Political Prisoners Remain in Custody... A magistrate in Mutare 
dismissed a charge against Roy Bennett of illegally trying to leave 
the country, but upheld a charge of illegal possession of arms for 
purposes of sabotage and denied bail. His lawyers are appealing the 
denial of bail to the High Court while a group of several hundred 
MDC supporters maintains a 24-hour vigil outside the Mutare police 
station awaiting his release. Separately, 5 of the 18 original 
abductees in State custody are now in Avenues Clinic receiving 
medical care, after numerous court orders. The High Court granted 
bail to four of the seven men accused of bombing police stations, 
but the State appealed. Of the 32 original abductees, 18 are still 
in custody, 10 are missing, one escaped to South Africa, and three 
have been released. In addition, the three white men arrested on 
January 3 for allegedly training insurgents at an adventure camp 
outside Harare remain in custody after being denied bail in the High 
Court this week. See Harare 130. 
 
¶7.  More WOZA Arrests... On February 14, WOZA held its annual march 
in Bulawayo, handing out Valentine's Day cards and roses to police, 
bystanders, and journalists. Approximately 800 men and women joined 
the protests which were scattered around town. Frustrated police hit 
many innocent bystanders and protesters, but there were no serious 
injuries. 10 were arrested - 7 WOZA women and 3 observers from a 
community radio station. The 10 were held in the jail's filthy 
conditions without warrant until Tuesday when 6 relented and paid 
fines for blocking traffic. The other four were released on bail and 
charges against them were dropped on the 19th. The group reported 
overflowing toilets and maggots in the overcrowded cells. 
 
¶8.  Cholera Response Assessment... Between February 8 and 14, the 
WHO reported a slight increase in new cholera cases and a slight 
decrease in cholera deaths compared to the previous week, consistent 
with regular increases in the weekly numbers of new cholera cases 
recorded throughout January. As of February 17, cholera has caused 
more than 3,700 deaths out of more than 78,000 reported cases, 
according to the WHO. Preparations are underway for a United Nations 
Interagency Real Time Evaluation, which will assess the overall 
relevance, effectiveness and coherence of the humanitarian response 
and provide feedback to facilitate planning and implementation. 
 
¶9.  British "Evacuation" Raises Eyebrows... This week the British 
Embassy announced its "Zimbabwe Resettlement Plan" - many months in 
the works - to help its senior citizens leaving Zimbabwe access 
social services immediately upon return to the UK.  Usually, 
returning Brits must wait several months to access assistance. The 
Herald called the plan an "evacuation" and painted it as a slap in 
the face to the new government. The Herald also reported that 
Tsvangrai called British ambassador Andrew Pocock to complain that 
QTsvangirai called British ambassador Andrew Pocock to complain that 
the British government's actions would dent international confidence 
in Zimbabwe. 
 
---------------------------------- 
On the Economic and Business Front 
---------------------------------- 
 
 
¶10.  Prices Keep Falling... Independent monitors found that prices 
of most basic commodities continued to fall in US dollar terms this 
week. A local private institution that monitors 25 imported and 
local products found that on average prices fell from US$70.63 to 
US$70.13. The EC Delegation, which monitors 18 items in the low 
income food basket, registered a 6% drop in prices in the same 
period. The Consumer Council of Zimbabwe estimates that a family of 
six requires a minimum monthly income of US$288. 
 
¶11.  Civil Servants Start Receiving Hard Currency Vouchers... Civil 
servants began receiving allowances worth US$100 per month in 
vouchers this week; their actual salaries will be deposited into 
 
HARARE 00000142  003 OF 003 
 
 
their accounts in local currency. As of February 19, civil servants 
who had received vouchers were redeeming them for either goods at 
selected supermarkets or for cash at banks. The vouchers indicated 
which shops and banks civil servants could use. Our banking contacts 
indicated that civil servants have received explicit instructions to 
redeem the vouchers for cash at banks and to open foreign currency 
accounts. With effect from March 2009, foreign currency denominated 
salaries for civil servants will be deposited into these accounts. 
We will monitor and report on the sustainability of this 
arrangement. 
 
¶12.  Budget, Monetary Policy up for Review... Deputy PM Arthur 
Mutambara advised businessmen this week not to base their planning 
on the recent budget and monetary policy statements as they were 
under review and subject to fundamental changes. 
 
¶13.  Trading Resumes on the Zimbabwe Stock Exchange... Trading in 
foreign currency got off to a slow start on the Zimbabwe Stock 
Exchange (ZSE) on February 19, after nearly three months of 
suspension. A mere 3,000 shares in one company changed hands at US1 
cent per share, as the market struggled to find the fair value for 
shares previously traded in local currency. Liquidity constraints 
arising from foreign currency shortages will likely put a damper on 
trading volume in the short term. 
 
¶14.  Reserve Bank Suspends Steep Licensing Fee... Faced with most 
shops inability to pay the exorbitant US$1,000/month licensing fee 
for trading in foreign currency, the RBZ suspended the requirement a 
week ago. 
 
¶15.  Rich Platinum Reserves, but Speculation with Claims... 
Zimbabwe's rich platinum resources contributed a third of the 
country's exports in 2008. But ground surrendered by international 
mining companies in exchange for empowerment credit in the past 
years has ended up in the hands of rogues and speculators rather 
than serious developers. See Harare 141. 
 
¶16.  Harare's Landline Network in Shambles... Embassy communications 
specialists have learned that South African and, most recently, New 
Zealand telcos have poached many of TelOne's (Zimbabwe's fixed-line 
parastatal) remaining few technicians. In addition, fuel was 
unavailable for service calls, and the few remaining company 
vehicles were no longer being serviced for lack of motor oil and due 
to the risk of parts going missing during off-site maintenance. 
 
----------------- 
Quote of the Week 
----------------- 
 
¶17.  "Don't ever fool yourselves. We are not going to be naove to 
believe that it's going to be smooth. This is a transition and there 
are transitional obstacles that you need to overcome. And overcome 
we will. Step by step we will make those incremental gains." -- 
Morgan Tsvangirai speaking at an MDC 10th anniversary celebration on 
February 18. 
 
¶18.  "If Morgan Tsvangirai has no power to protect his top 
leadership, the rest of the country is in big trouble because 
Qleadership, the rest of the country is in big trouble because 
nothing is going to change." -- Heather Bennett speaking of her 
husband Roy's continued detention on February 17 with SW Radio. 
 
 
MCGEE