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RUEHUJA/AMEMBASSY ABUJA 2266
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RHEHAAA/NSC WASHDC
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RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHEFDIA/DIA WASHDC

UNCLAS SECTION 01 OF 03 HARARE 000310 
 
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 04-09-2009 
 
----------- 
¶1.  SUMMARY 
----------- 
 
Topics of the week: 
 
- Government Concludes Retreat... 
- More Media Space?... 
- Parliament Adjourns Until May... 
- First Constitutional Deadline Approaching... 
- Prison Wardens Arrested, Beaten, Released... 
- Three Remaining Bombers Denied Bail by Chief Justice... 
- National Healing Conference Turns Violent... 
- Students Arrested While Protesting High Tuition... 
- Bullish Outlook For Gold Though More Reforms Needed... 
- Bearish on Nickel... 
- Ban on Trade in Marange Diamonds... 
- Prices of Basics Continue to Fall... 
 
----------------------------- 
On the Political/Social Front 
------------------------------ 
 
¶2.  Government Concludes Retreat...  All but two GOZ ministers 
participated in a three-day retreat last weekend in Victoria Falls. 
Ministers from both ZANU-PF and MDC told us the exercise had been 
highly successful.  Ministers divided ministries into five related 
clusters and began drawing up 100-day plans. 
 
¶3.  More Media Space?...  At the Victoria Falls retreat, Minister of 
Justice Patrick Chinamasa announced that efforts should be made to 
open media space.  Separately, plans are being made to begin 
publishing an independent daily newspaper and to start an 
independent raio station.  Members of the Media Commission, 
contemplated by Amendment 19, are supposed to be appointed by the 
end of the month.  Whether any or all of this happens will be an 
important benchmark in measuring the progress of the new 
government. 
 
¶4.  Parliament Adjourns Until May...  Parliament announced it would 
adjourn until May 12 due primarily to a lack of funds.  MPs have not 
been receiving their travel and housing allowances since Parliament 
came back in session in January, forcing members to pay transport 
and housing costs out of pocket.  MPs have also not received their 
vehicles-a traditional perk to allow MPs to travel between Harare 
and their home districts-although Reserve Bank Governor Gideon Gono 
offered MPs secondhand, central bank vehicles, leading Finance 
Minister Tendai Biti to demand that Gono cease engaging in 
"quasi-fiscal activities."  See Harare 288. 
 
¶5.  First Constitutional Deadline Approaching...  Under the terms of 
last September's Inter-party Political Agreement, a Constitutional 
Select Committee (CSC) must be set up by next week.  Minister of 
Constitutional and Parliamentary Affairs Eric Matinenga told us this 
deadline would be met.  Although Matinenga and the MDC had argued 
that the Committee should be chaired by an independent 
non-parliamentarian, it will be chaired by a member of Parliament. 
The constitution making process has drawn criticism from civil 
society members who argue that, despite assurances from Matinenga 
that civil society would have input, the process is not being 
"people driven." 
 
¶6.  Prison Wardens Arrested, Beaten, Released...  Five prison 
wardens were arrested on April 3 on charges of violating the 
Official Secrets Act.  The arrests appeared to come as retaliation 
QOfficial Secrets Act.  The arrests appeared to come as retaliation 
for facilitating the filming of the damning SABC documentary on 
Zimbabwean prisons, "Hell Hole."  Four of the wardens were beaten by 
police while in custody.  After police searched their homes and 
could not find evidence against them, three were released without 
charge and two were released on bail on April 7 for unrelated 
 
HARARE 00000310  002.2 OF 003 
 
 
charges.  "Hell Hole" proved so popular that SABC re-aired it this 
week. 
 
¶7.  Three Remaining Bombers Denied Bail by Chief Justice...  On 
April 6, the Chief Justice of the Supreme Court denied bail to three 
men (two MDC activists and a journalist) abducted late last year. 
The men were seized and subsequently accused of involvement in the 
bombing of police stations in 2008.  Their lawyers have filed 
another urgent application in the High Court to seek their release. 
 
 
¶8.  National Healing Conference Turns Violent...  Fighting between 
MDC and ZANU-PF youths broke out during a conference organized by 
the Ministry of Youth, Development, Indigenization and Empowerment 
at the Rainbow Towers Hotel in Harare.  Youths in attendance told us 
that discussions on jobs, education, and HIV/AIDS were constructive. 
 However, when the conversation turned to national healing and the 
constitution, ZANU-PF youths became defensive, saying that there was 
no need to punish perpetrators of violence in 2008.  Tensions 
escalated between ZANU-PF and MDC youth.  ZANU-PF Minister Saviour 
Kasukuwere and MDC-T Deputy Minister Thamsanqa Mahlangu tried to 
calm the 100-person crowd.  Riot police arrived to break up the 
fights.  Some windows were broken, but no one was seriously 
injured. 
 
¶9.  Students Arrested While Protesting High Tuition...  Seven 
students were arrested at the National University of Science and 
Technology (NUST) in Bulawayo on Monday, following a demonstration 
over fees, and are still being detained at the central police 
station.  The group was arrested following accusations that they 
stoned a car belonging to a visitor on campus during the 
demonstration.  The students deny the accusation and say they 
protested peacefully against exorbitant fees that are beyond the 
means of most parents.  Last week the University of Zimbabwe failed 
to open after over 70 percent of students failed to pay the fees 
which are as high as US$800 per term for some courses. 
 
----------------------------------- 
On the Economic and Business Front 
---------------------------------- 
 
¶10.  Bullish Outlook For Gold Though More Reforms Needed... 
Following liberalization of the gold sector, producers believe that 
output will rise substantially from the current level of around 200 
kg/month to as high as 1,000 kg/month by the end of 2009.  Most 
major mines expect to be operational within three to six months 
provided government continues to implement market-friendly policies 
and amends the Gold Act in line with the recently announced price 
and marketing reforms. 
 
¶11.  But Bearish on Nickel...  The plunge in the world nickel price 
forced Bindura Nickel Corporation (BNC) to place its nickel mines on 
care and maintenance in late 2008 and its smelter and refinery on 
the same regime last month.  BNC has also shelved plans for a US$100 
million investment in a third nickel mine in Zimbabwe.  Nickel had 
been one of Zimbabwe's top exports to the U.S. 
Qbeen one of Zimbabwe's top exports to the U.S. 
 
¶12.  Ban on Trade in Marange Diamonds...  The World Federation of 
Diamond Bourses this week announced a ban by its 28 member countries 
on trading in diamonds from Zimbabwe's disputed Marange/Chiadzwa 
deposit.  These fairly easily identifiable rough diamonds lack 
Kimberley Process Certificates.  Discussion is underway within the 
Kimberley Process on a full review visit to Zimbabwe in the coming 
weeks. 
 
¶13.  Prices of Basics Continue to Fall...  Prices of most basic 
commodities keep falling in Zimbabwe as more players enter the 
market. The price of the staple maize meal, for example, fell from 
US$5/10kg bag two weeks ago to US$3.80 during the week under review. 
 Our own calculation of the prices of eight basic food items for a 
 
HARARE 00000310  003.2 OF 003 
 
 
low-income family of five, using the lowest prices on the market, 
show an expenditure of about US$46/month, down from US$58 two weeks 
ago.  However, when transportation, rent and school fees are 
included, the monthly expenditure rises well above the civil 
servants' US$100 allowance, which is being used as a benchmark in 
wage and salary negotiations.  Declines in non-basic goods have not 
been as dramatic.  Harare-based economst John Robertson said 
figures from the Central Statistical Office sho(&z(44lzf Finance...  The 
Minister of Finance is my boss."  --  RBZ Governor Gideon Gono 
speaking at the first joint press conference between him and Finance 
Minister Tendai Biti on April 8. 
 
 
MCGEE