VZCZCXRO5352
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSB #0810/01 2811204
ZNR UUUUU ZZH
R 081204Z OCT 09
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC 4995
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHAR/AMEMBASSY ACCRA 3074
RUEHDS/AMEMBASSY ADDIS ABABA 3186
RUEHRL/AMEMBASSY BERLIN 1615
RUEHBY/AMEMBASSY CANBERRA 2449
RUEHDK/AMEMBASSY DAKAR 2818
RUEHKM/AMEMBASSY KAMPALA 3234
RUEHNR/AMEMBASSY NAIROBI 5681
RUEHGV/USMISSION GENEVA 2368
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 000810 
 
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 10-02-2009 
 
----------- 
¶1.  SUMMARY 
----------- 
 
Topics of the week: 
 
- Supreme Court Rules in Human Rights Defender's Favor 
- Shamu Fills Media Boards with ZANU-PF Sympathizers... 
- Parliament Completes Electoral Commission Interviews... 
- Brigadier General Ignores High Court Order... 
- GOZ to Appeal Ruling on Diamond Fields... 
- USAID Loan Guarantees for Agriculture... 
- So That's Why the Lights Went Out... 
- Banks Meet Capital Targets... 
- Nestle's Dis-Grace... 
 
--------------------------------- 
On the Political and Social Front 
---------------------------------- 
 
¶2.  Supreme Court Rules in Human Rights Defender's Favor...  On 
September 28 the Supreme Court granted Zimbabwe Peace Project 
Director Jestina Mukoko a permanent stay of prosecution in the 
terrorism case against her.  The Court ruled that her constitutional 
rights were violated when she was abducted, tortured, and illegally 
detained in late 2008.  Lawyers welcomed the ruling and on Thursday 
called on Attorney General Johannes Tomana to accept responsibility 
for his law officers' failure to protect the rights of Mukoko and 
other abductees by resigning.  Seven MDC activists abducted in late 
2008 are still missing.  See Harare 775. 
 
¶3.  Shamu Fills Media Boards with ZANU-PF Sympathizers...  Webster 
Shamu (ZANU-PF), the Media, Information and Publicity Minister, 
announced on September 30 board appointments to the six 
media-related parastatals including Zimpapers (the publisher of 
State media), the Broadcast Authority of Zimbabwe (regulatory agency 
for broadcasters), Zimbabwe Broadcasting Holdings (ZBC TV station), 
Transmedia (transmission equipment provider), Kingstons 
(bookseller), and New Ziana (news outlet).  Media watchdog groups 
Media Institute of Southern Africa and the Media Monitoring Project 
of Zimbabwe criticized the appointments noting that each board 
contained at least one military official and prominent opponents of 
media freedom including new BAZ chairman Tafataona Mahoso.  Mahoso 
is notorious for having banned the Daily News, the Times, and the 
Tribune while he was chair of the Media Information Commission.  He 
was also the lowest-ranked candidate during parliamentary interviews 
for the new Media Commission. 
 
¶4.  Parliament Completes Electoral Commission Interviews...  A 
bipartisan panel of MPs completed interviews of 25 candidates for 
the new constitutionally-mandated Independent Zimbabwe Electoral 
Commission (IZEC) on September 28.  The panel identified the top 12 
candidates whose names will be forwarded to President Mugabe who 
will constitute the commission's body by selecting eight of them. 
He will separately nominate a chairperson put forward by the 
Judicial Services Commission.  University of Zimbabwe law professor 
Geoff Feltoe was the top-ranked candidate, but the white professor 
believes he is unlikely to make the cut given his outspoken 
criticism of ZANU-PF and his race. 
 
¶5.  Brigadier General Ignores High Court Order...  White farmer 
Q5.  Brigadier General Ignores High Court Order...  White farmer 
Charles Lock secured a High Court order from Justice Baharat Patel 
on September 24 granting him "unfettered access" to his farm and 
crop.  The judge ordered police to help him gain access to the 
property.  Despite the order, men working for Brigadier General 
Justin Mujaji, who continues to occupy the farm, threatened to shoot 
Lock when he attempted to move 150 tons of tobacco and 500 tons of 
maize valued at US$700,000 this week. 
 
 
HARARE 00000810  002 OF 003 
 
 
¶6.  GOZ to Appeal Ruling on Diamond Fields...  Minister of Mines 
Obert Mpofu (ZANU-PF) informed the press on October 1 that the State 
planned on appealing last week's Supreme Court ruling upholding 
private mining firm African Consolidated Resources' (ACR) claim to 
the Chiadzwa diamond fields.   In a statement following its court 
victory last week, ACR said it was committed to "dialogue with the 
Zimbabwe government."  The comment may indicate ACR's willingness to 
partner with the government. 
 
----------------------------------- 
On the Economic and Business Front 
---------------------------------- 
 
¶7.  USAID Loan Guarantees for Agriculture...  On September 30, USAID 
Zimbabwe signed an agreement with Standard Chartered Bank for loan 
guarantees to back agricultural lending of up to US$20 million over 
five years.  The program is supported by USAID's Development Credit 
Authority.  It allows Standard Chartered to make loans to farmers 
and agricultural enterprises that will supply inputs and technical 
assistance to smallholders.  Read the press release at 
http://harare.usembassy.gov 
/agric_support.html.  Surprisingly, the government mouthpiece The 
Herald covered the story and included a photo of the Charg and 
USAID Director at the signing ceremony. 
 
¶8.  So That's Why the Lights Went Out...  The Hwange Colliery 
Company, which supplies the Hwange Power Station (HPS), recorded a 
53 percent year-on-year decline in coal sales and a 79 percent fall 
in coke sales during the first six months of the year.  The main 
reason was the constant breakdown of antiquated equipment.  At the 
same time HPS suffered interruptions of gas supplies because of a 
major breakdown of a gas pipeline.  With a capacity of 1200 MW, HPS 
is Zimbabwe's largest power station.  Hwange Colliery will require 
substantial investment to meet an anticipated increase in demand for 
coal driven by projected regional power shortages in the coming 
years. 
 
¶9.  Banks Meet Capital Targets...  All of Zimbabwe's commercial 
banks met the September 30 deadline for satisfying new minimum 
capital requirements set by the Reserve Bank of Zimbabwe (RBZ).  But 
the RBZ had set the bar low by allowing banks to include fixed 
assets in their reserve numbers.  When the air goes out of Harare's 
recently effervescent property market, some banks will need to raise 
more capital.  Minimum capital requirements are set to rise again in 
March, and that may increase pressure on the weaker banks. 
According to the President of the Bankers' Association of Zimbabwe, 
some banks had already met that higher standard.  But it is clear 
that many institutions will need much more time to recover from the 
ravages of hyperinflation. 
 
¶10.  Nestle's Dis-Grace...  Following news reports that Nestle's 
local subsidiary had been doing business with a dairy farm 
controlled by Grace Mugabe, the company announced that it would no 
longer buy milk from Gushongo Dairy Estate near Mazowe.  Gushongo 
Qlonger buy milk from Gushongo Dairy Estate near Mazowe.  Gushongo 
had previously been operated as Foyle Farm, until the owner was 
forced to sell it for a fraction of its value in 2003.  The 
2,400-acre farm is now managed by Russell Goreraza, Grace Mugabe's 
son from her first marriage.  Since February the Nestle factory on 
the outskirts of Harare had reportedly been receiving milk from 
Gushongo three times a week in "an unmarked tanker." 
 
 
----------------- 
Quote of the Week 
----------------- 
 
¶11.  "We have always respected property rights. Except on land..." 
-- Minister of Economic Planning Elton Mangoma (MDC-T), quoted in 
The Independent on October 2. 
 
HARARE 00000810  003 OF 003 
 
 
 
 
PETTERSON