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R 081211Z JUN 09
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC 4572
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 2302
RUEHAR/AMEMBASSY ACCRA 2869
RUEHDS/AMEMBASSY ADDIS ABABA 2988
RUEHRL/AMEMBASSY BERLIN 1427
RUEHBY/AMEMBASSY CANBERRA 2251
RUEHDK/AMEMBASSY DAKAR 2618
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RUEHNR/AMEMBASSY NAIROBI 5477
RUEHGV/USMISSION GENEVA 2160
RHEHAAA/NSC WASHDC
RHMFISS/EUCOM POLAD VAIHINGEN GE
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHEFDIA/DIA WASHDC
RUEAIIA/CIA WASHDC
RUCPDOC/USDOC WASHDC

UNCLAS SECTION 01 OF 03 HARARE 000471 
 
SIPDIS 
 
AF/S FOR B. WALCH 
ADDIS ABABA FOR USAU 
ADDIS ABABA FOR ACSS 
NSC FOR SENIOR AFRICA DIRECTOR MICHELLE GAVIN 
TREASURY FOR D. PETERS 
STATE PASS TO USAID FOR LDOBBINS AND JHARMON 
COMMERCE FOR BECKY ERKUL 
 
E.O.12958: N/A 
TAGS: PGOV PREL ASEC PHUM EAGR ECON EFIN ZI
SUBJECT: ZIM NOTES 05-29-09 
 
---------------------------- 
SUMMARY - Topics of the week 
---------------------------- 
 
- Post Welcomes CODEL to Zimbabwe 
- Gono Retains Backing of Mugabe and Service Chiefs 
- ZANU-PF Sets Up Succession Committee 
- Msika to Retire? 
- AG's Office Still Pursuing Women, and Lawyers, and Journalists (oh 
my!) 
- Free Press Still a Distant Goal 
- Pentecostal Pastor Abducted, Then Released 
- Land Reform Threatens Conservancy 
- Chiadzwa Footage Hits the International News 
- Local Pharmaceuticals Firm to Acquire South African Company 
- Diamond Mine Re-Capitalizing 
- Winter Wheat Crop Hampered by Funding Shortage 
- Property Companies Record Increase in Rentals 
- Troubled Air Zimbabwe Sends Workers on Forced Leave 
- Development Bank of SouthernAfrica in Loan Negotiation with 
Zimbabwe 
- Quote of the Week 
 
----------------------------- 
On the Political/Social Front 
----------------------------- 
 
¶1.  Post Welcomes CODEL to Zimbabwe:  A Congressional delegation led 
by Representative Donald Payne (D-NJ) is arriving in Harare this 
weekend for several days of meetings with senior government 
officials, the donor community, and civil society and business 
leaders.  Representative Payne is currently the chairman of the 
House Subcommittee on Africa and Global Health and a past chairman 
of the Congressional Black Caucus. 
 
¶2.  Gono Retains Backing of Mugabe and Service Chiefs:  In the 
continued struggle over the future of RBZ Governor Gono, Mugabe 
spoke out in support of his long-time personal banker this week 
saying that he wasn't going anywhere.  See Harare 447.  Vocal 
support also came from the Service Chiefs, who have benefited from 
many of Gono's illegal activities, including the farm mechanization 
scheme that saw high-ranking officers receive free farm inputs and 
equipment.  On May 26, Vice Air Marshal Henry Muchena warned, "If 
you keep harassing Gono, we will take matters into our own hands." 
 
¶3.  ZANU-PF Sets Up Succession Committee:  ZANU-PF spokesman Ephraim 
Masawi confirmed on May 28 that his party held an extraordinary 
politburo meeting which created a committee to deal with the 
controversial issue of who within the party will eventually succeed 
Mugabe.  The committee is led by party chairman John Nkomo and 
includes rival faction leaders Joyce Mujuru and Emmerson Mnangagwa. 
Though local political analysts say a successor is unlikely to be 
named anytime soon, the issue may again rise at this year's December 
ZANU-PF party congress. 
 
¶4.  Msika to Retire?:  According to The Zimbabwe Independent, 
longtime ZANU-PF fixture, Vice-President Joseph Msika is on the 
verge of retiring due to deteriorating health and the succession 
problems within ZANU-PF.  However, Mugabe is allegedly reluctant to 
allow him to retire, preferring to keep him in office for life as 
happened with Joshua Nkomo and Simon Muzenda. 
 
¶5.  AG's Office Still Pursuing Women, and Lawyers, and Journalists 
Q5.  AG's Office Still Pursuing Women, and Lawyers, and Journalists 
(oh my!):  The Magistrate's Court was busy on Thursday morning with 
three political cases.  8 alleged WOZA women and two ZLHR lawyers 
were acquitted on charges of disturbing the peace in February. 
Separately, magistrate Catherine Chimhanda heard arguments in human 
rights lawyer Alec Muchadehama's remand hearing for allegedly 
 
HARARE 00000471  002 OF 003 
 
 
obstructing justice when he secured the release of three of the 
abductees on bail back in April.  He may face trial on June 17. 
Chimhanda also ruled that the two journalists from The Zimbabwe 
Independent will stand trial on June 16 for allegedly publishing 
falsehoods.  Recently, Chimhanda has been the designated magistrate 
in numerous political cases and has consistently sided with the 
State, leading many to believe her objectivity has been 
compromised. 
 
¶6.  Free Press Still a Distant Goal:  Despite a recent pronouncement 
by Prime Minister Tsvangirai that foreign and local journalists did 
not need to possess a registered press card to report in Zimbabwe, 
on May 23 the ZANU-PF led Ministry of Media, Information and 
Publicity told all reporters they would be required to apply for 
press cards from the commission.  The cards cost up to 2,000 rand 
(US$250) and issuance is not assured. 
 
 
¶7.  Pentecostal Pastor Abducted, Then Released: A prominent 
Pentecostal pastor was abducted on May 26 by men in a white vehicle. 
 He was released the next day and remains in hiding.  He has been an 
outspoken supporter of the MDC. 
 
¶8.  Land Reform Threatens Conservancy: ZANU-PF heavyweights in 
Masvingo are seeking to establish forced partnerships with land 
owners in the Save Valley Conservancy.  The Conservancy is home to 
20 percent of Zimbabwe's rhinos.  Rhinos have thrived in Zimbabwe's 
private conservation areas, largely due to the massive private 
investments made by landowners.  See Harare 444. 
 
¶9.  Chiadzwa Footage Hits the International News: A team of Canadian 
journalists recently visited the diamond fields of Chiadzwa.  They 
interviewed the Minister of Mining, Obert Mpofu, and one of the men 
who says he helped with the mass grave that the government continues 
to deny.  See the story online: http://www. 
cbc.ca/world/story/2009/05/26/zimbabwe-diamon ds.html 
 
-------------------------- 
Economic and Business News 
-------------------------- 
 
¶10.  Local Pharmaceuticals Firm to Acquire South African Company: 
Pharmaceuticals manufacturer CAPS Holdings Ltd is about to acquire 
an unnamed South African pharmaceutical company in a share swap deal 
that will see CAPS issuing new shares for the project.  The shares 
will be registered on the Johannesburg Stock Exchange's Pan African 
Board. 
 
¶11.  Diamond Mine Re-Capitalizing:  River Ranch Diamond Mine 
announced that it will invest US$15 million in mine development and 
exploration which will double output from the current 30,000 tons of 
rock a month to 70,000 tons. The funds will be sourced from 
shareholders.  20 percent of River Ranch is owned by retired general 
Solomon Mujuru, who gained his stake at the expense of a local 
company, Bubye Minerals.  Bubye contested the ownership change but 
was thwarted by the Zimbabwean courts. 
 
¶12.  Winter Wheat Crop Hampered by Funding Shortage:  Wheat planting 
Q12.  Winter Wheat Crop Hampered by Funding Shortage:  Wheat planting 
is progressing slowly due to a shortage of funds for inputs.  Lack 
of liquidity in the banking sector is exacerbating the problem.  In 
addition, more farmers are shifting out of wheat and into barley as 
beverages manufacturer Delta Corporation is providing inputs to 
farmers to grow barley under contract for beer production. 
 
¶13.  Property Companies Record Increase in Rentals:  Major property 
developer Pearl Properties saw a rise in rental yields from 1.21 
percent in 2007 to 3.11 percent in 2008 due to an increase in 
rentals from US$0.28/m2 in 2007 to US$2.62 in 2008, a development 
 
HARARE 00000471  003 OF 003 
 
 
also reflected in the interim results of property developer 
Mashonaland Holdings Ltd.  Rentals are believed to be a tenth of 
those prevailing in the region.  Furthermore, they were 67 percent 
in arrears in the first quarter of 2009, but fell to 40 percent by 
the end of April. 
 
¶14.  Development Bank of Southern Africa in Loan Negotiation with 
Zimbabwe:  The government mouthpiece The Herald reported this week 
that DBSA is conducting due diligence on two short-term loan 
packages to Zimbabwe to provide US$100 million to upgrade 
infrastructure in the energy, telecommunications and water supply 
sectors.  The report does not make clear whether the loan would be 
ahead of arrears clearance. 
 
¶15.  Troubled Air Zimbabwe Sends Workers on Forced Leave: 
Struggling with debt since off-budget support from the Reserve Bank 
dried up earlier this year, Air Zimbabwe is reportedly sending out 
notices to its workers to take time off at 50 percent of benefits 
until recall.  Workers see the move as the signal of impending 
layoffs that could target as many as two thirds of the company's 
1,400 employees. 
 
¶16.  Quote of the Week: 
 
"They have no reason whatsoever to fear anything like that as long 
as they fear and obey the laws of Zimbabwe." 
 
- Attorney General Johannes Tomana on May 27 speaking in reference 
to criticism that his office was prosecuting MDC-T MPs in an effort 
to return control of Parliament to ZANU-PF. 
 
MCGEE