VZCZCXRO4120
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSB #0132/01 0470753
ZNR UUUUU ZZH
R 160752Z FEB 10
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC 0056
INFO SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RHEFDIA/DIA WASHINGTON DC
RHEHNSC/WHITE HOUSE NATIONAL SECURITY COUNCIL WASHINGTON DC
RHMCSUU/EUCOM POLAD VAIHINGEN GE
RUEAIIA/CIA WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHBY/AMEMBASSY CANBERRA 0024
RUEHDS/AMEMBASSY ADDIS ABABA 0024
RUEHOT/AMEMBASSY OTTAWA
RUEHRL/AMEMBASSY BERLIN 0024

UNCLAS SECTION 01 OF 03 HARARE 000132 
 
SIPDIS 
AF/S FOR B. WALSH 
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 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ASEC PHUM ZI
SUBJECT: ZIMNOTES 2/12/2010 
 
----------- 
 
¶1.  SUMMARY 
 
----------- 
 
 
 
Civil Service Strike Hits Education Sector... 
 
Commissioners to ZEC and HRC Selected... 
 
No Progress on Talks... 
 
MDC-T Expels 23 Councilors... 
 
Diamond Firm Directors Arrested... 
 
Newspaper Staff Charged... 
 
No Birthday Cake for the Government... 
 
"Indigenization" Rules Issued... 
 
Resolve Outstanding Issues, Parties Told... 
 
Energy Bill to Open up the Sector... 
 
Central Bank Approves Credit Bureau... 
 
 
 
--------------------------------- 
 
On the Political and Social Front 
 
---------------------------------- 
 
 
 
¶2.  A government workers strike that began on February 5 led by 
Zimbabwe's two teachers' unions -- ZIMTA and PTUZ -- resulted in 
widespread school closures across Zimbabwe. The unions estimate 
that over 70 percent of their combined membership of approximately 
60,000 teachers have joined the labor action to demand higher wages 
and reduced utility rates. Some government offices have been forced 
to close as well, including a handful of ministries and the courts, 
which has delayed several prominent cases including the Bennett 
trial. Hospitals are functioning normally as doctors and nurses 
reported to work. The state media has blamed the strike on an MDC 
failure to meet the needs of workers. See Harare 110. 
 
 
 
¶3.  Following several weeks of rumors, President Mugabe and PM 
Tsvangirai appear to have agreed upon chairs to the newly-created 
Electoral and Human Rights Commissions. Though still not announced 
by the state press or the government, former High Court Judge 
Simpson Mtambanengwe (ZEC) and former University of Zimbabwe law 
professor Reg Austin (HRC) have been offered the positions, 
according to multiple independent press reports. Discussions with 
our contacts indicate that both Mtambanengwe and Austin are well 
regarded by their peers. Mtambanengwe served as a High Court judge 
for 12 years and is now acting Chief Justice in Namibia and the 
chair of Namibia's electoral commission. Austin has served as the 
UN Chief Electoral officer in Cambodia and Afghanistan. 
 
 
 
¶4.  Despite the return of South Africa's facilitation team on 
February 8, the resulting two days of talks produced no discernible 
 
HARARE 00000132  002 OF 003 
 
 
results. ZANU-PF appears determined not to give any ground until 
sanctions are lifted, leaving the MDC with no maneuvering room. The 
facilitators left on February 11 without making any public 
statements or giving any indication when they might return. MDC 
intends to declare a deadlock and appeal to SADC, but is waiting 
for the Media, Electoral, and Human Rights commissions to be 
announced before it does so. 
 
 
 
¶5.  In a move that deprives the party of control of the large town 
of Chitungwiza, the MDC-T dismissed 23 councilors from the party 
for corruption, breach of the party's charter, and insubordination. 
Spokesperson Nelson Chamisa told us that the party took the 
decision after its investigations implicated the councilors on 
serious, but unspecified, corruption charges. The councilors will 
likely remain in office because Local Government Minister Ignatius 
Chombo (ZANU-PF) said he would not call for an early election to 
replace the councilors. 
 
 
 
¶6.  Two South African directors of Canadile Miners, one of two 
firms extracting diamonds at the Chiadzwa fields, have been 
arrested on allegations of illegally possessing the precious 
stones. Komilan Packirisamy and Viyandrakumar Naidoo were arrested 
in nearby Hot Springs on February 2 after company employees tipped 
off police that the two had diamonds in their car. Police 
discovered stones worth an estimated US$28,000 in the vehicle. The 
other firm granted mining rights, Mbada Diamonds, has also been 
mired in controversy for airlifting diamonds out of Zimbabwe and 
for attempting to hold an auction that would have violated the 
Kimberley Process plan agreed upon by the GOZ in November. 
 
 
 
¶7.  On February 11, two men were charged with writing and 
publishing false statements in the January 10 edition of The 
Zimbabwean under the headline "Mnangagwa plots fight back: talk of 
new splinter group. " Barnabas Madzimure and Fortune Mutandiro, who 
work for The Zimbabwean's local distributor, Adquest, were 
initially arrested and released without charge on January 17 after 
spending several hours answering questions and producing papers to 
show that the newspaper had been legally imported. The Zimbabwean's 
editor, Wilf Mbanga, issued a statement accusing Jonathan Moyo of 
orchestrating the harassment of the newspaper. 
 
 
 
¶8.  The inclusive government turned a year old on February 11 with 
virtually no fanfare. News articles and reports from civil society 
are evaluating the numerous shortcomings and still-to-be-fulfilled 
promises of the inclusive government: a land audit; greater media 
freedom; progress towards a new constitution; new media, human 
rights, elections, and anti-corruption commissions. Although the 
economy has improved in the last year, those accomplishments were 
overshadowed this week by the widespread civil servant strike. 
 
 
 
----------------------------------- 
 
On the Economic and Business Front 
 
---------------------------------- 
 
 
 
¶9.  The Minister of Youth Development, Indigenization, and Economic 
Empowerment issued regulations this week governing redistribution 
of business ownership under the 2007 indigenization law. By 
mid-April businesses must submit plans on how they will transfer a 
controlling interest to black Zimbabweans. Although Tsvangirai 
 
HARARE 00000132  003 OF 003 
 
 
described the regulations as "null and void", their publication 
will naturally frustrate efforts to attract foreign investment. See 
Harare 116. 
 
 
 
¶10.  The Business Council of Zimbabwe (BCZ) has urged Mugabe, 
Mutambara, and Tsvangirai to resolve outstanding issues under the 
Global Political Agreement in order to encourage investment in the 
country. The BCZ also called for the introduction of realistic and 
pragmatic indigenization and economic empowerment policies in view 
of the need to attract capital into the country. The business 
community also expressed disappointment at the continuing farm 
invasions. 
 
 
 
¶11.  The GOZ is drafting an energy bill with tax incentives to 
attract private investment of over US$2.5 billion in the 
electricity and fuel sectors. The move is designed to stabilize 
electricity supply by increasing the country's own internal power 
generating capacity. 
 
 
 
¶12.  The Reserve Bank of Zimbabwe has approved the setting up of a 
Credit Reference Bureau to ease credit risk management. Due to its 
liquidity constraints, the RBZ has urged banks to fund the bureau 
themselves. Following the adoption of a multi-currency system in 
February 2009, banks pressed for the setting up of a centralized 
credit information center in order to promote the flow of 
information among lenders. 
 
 
 
¶13.  Pedzisayi Ruhanya, program manager of the Crisis in Zimbabwe 
Coalition, an NGO advocating human rights and democratization, told 
IRIN: "As a transitional government we should have been moving 
towards a new democratic culture with new institutions, but that 
has not happened. The constitution-making process has been stalled 
at each and every opportunity, media reforms have not been 
undertaken ... [and] the security forces continue to operate from 
ZANU-PF's armpit as a partisan force." 
 
 
 
RAY 
RAY