Zimbabwe has everything to gain from Kimberly Process Membership - Part 1 of 3

According to statistics obtained by GMRI Capital, Africa is the richest continent for known diamond reserves and mining, accounting for more than half of the world's production but sadly diamonds have brought suffering in communities around them. Diamonds have recently been discovered in eastern Zimbabwe.The diamond discovery has brought widespread reports and allegations of human rights abuses leading to Zimbabwe's diamonds being labeled blood diamonds. Blood diamond (also called a converted diamond, conflict diamond, hot diamond or a war diamond) refers to a diamond mined in an unstable area and usually sold to finance an insurgency,war,rebellion and involve human rights violations.It is important for Zimbabwe to avoid being labeled as a supplier of blood diamonds and this is best done by co-operating with the Kimberly Process (KP). Zimbabwe needs KP to help develop institutional capacity to handle the newly discovered diamonds and aid transparency.

Zimbabwe's participation in the KP will result in greater transparency in the gathering of statistical data on the true output of the diamonds coming out of Marange Diamond fields.Currently reports suggest ZANU -PF has replaced Zimbabwe dollar printing with Diamond looting as one way to finance its operations.These are serious allegations which can be addressed by inviting the KP to verify the activities and goings. The recent out burst by both President Mugabe and Minister of Mines Mpofu that Zimbabwe will pull out of the KP only make these allegations sound genuine and legitimate.The KP pull-out threats are very unwise and sound very familiar since ZANU -PF once uniletarally pulled Zimbabwe out of the Commonwealth over peer review pressures.


The Kimberley Process Certification Scheme imposes extensive requirements on its members to enable them to certify shipments of rough diamonds as ‘conflict-free’.It has 49 members, representing 75 countries, with the European Community and its Member States counting as an individual participant. KP members account for approximately 99.8% of the global production of rough diamonds.The scheme is only a soft law as such, it is not legally binding on the participating countries.Countries cannot be subject to criminal legality.The KP is essentially a self-enforced mechanism based on peer review system similar to a club of individuals with same interests.The process was established in 2003 to prevent diamond sales from financing conflicts and human rights abuses.

In recent times the world diamond industry has been driven by a network of secrecy and sophisticated levels of corruption.Smuggling is also rampant in the industry, making the global diamond trade one of the largest black markets globally. Diamond smuggling intensifies violence and instability in communities where diamonds are found.This has been the case in D.RC.,Sierra Lione,Liberia and now Chiadzwa.There is greater need for transparency and the involvement of the Reserve Bank of Zimbabwe brings more questions than answers since the central bank is now more known for looting private foreign currency accounts and ruining the Zimbabwe dollar.

Recent studies conducted by Human Rights Watch show that police officers deployed in Zimbabwe’s fields to end illicit diamond smuggling were actually responsible for the harassment, torture, beatings and killings of artisanal miners and Zimbabwe locals. (Link http://www.reuters.com/article/idUSLQ67185420090626).These reports further cast shadows over the country's young diamond industry and makes KP membership imperative.


The smuggling of diamonds reduce the amount of money being re-invested into diamond-producing communities, depriving the government of legitimate tax revenues ( Link - http://www.news24.com/Content/Africa/Zimbabwe/966/32dfb62f92f14aefb4a0ac1b4b15c8c4/05-04-2007-07-50/Zim_loses_$400m_in_diamonds ). Reports indicate Zimbabwe could be losing anything between US$ 50 million to US$ 400 million per month from smuggled diamonds and leakages.These leakages must be stopped and revenue channeled proper state Treasury coffers.This is money that could be used to create the Zimbabwe Sovereign Wealth Fund (ZSWF).


In other African countries KP involvement has increased the revenues of poor governments, and helped them to address their countries’ infrastructural development needs and challenges. For instance, some $125 million worth of diamonds were legally exported from Sierra Leone in 2006, compared to almost none at the end of the 1990s.http://www.pacweb.org/programs-resources-e.php.Curently Zimbabwe's diamond earnings are almost negligable despite reportedly having one of the largest diamond reserves in Africa.This indicates leakages,smuggling and non-accountability which must be addressed.

Republic of the Congo was removed from KP because it was unable to properly account for the origin of its gems, most of which were believed to have come from the neighboring Democratic Republic of the Congo.The country faced UN sanctions in 2004 because despite having no official diamond mining industry, the country was exporting large quantities of diamonds, the origin of which it could not detail - http://www.nationaljewelernetwork.com/njn/content_display/diamonds/e3idc28e6611ea5f0a80a32173f4a8fed07.This is similar to early reports that Zimbabwean diamonds were being smuggled and certified as SouthAfrican diamonds.

The major producing countries are Democratic Republic of Congo (formerly Zaire), Botswana (which produces more than 28%), South Africa, Angola, Namibia, Ghana, Central African Republic, Guinea, Sierra Leone, and Zimbabwe. Greed, on the part of corrupt politicians, governments and private companies involved in the diamond trade, has caused a significant portion of the political turmoil experienced in many of the African diamond producing countries. History has shown that the trade in these illicit stones has fuelled decades of devastating conflicts in countries such as Angola, Cote d'Ivoire, the Democratic Republic of the Congo and Sierra Leone. (http://www.zimbabwejournalists.com/story.php?art_id=3399&cat=1)

According to the Kimberly Process website "The Kimberley Process Certification Scheme (KPCS) imposes extensive requirements on its members to enable them to certify shipments of rough diamonds as ‘conflict-free’ and prevent conflict diamonds from entering the legitimate trade. Under the terms of the KPCS, participating states must meet ‘minimum requirements’ and must put in place national legislation and institutions; export, import and internal controls; and also commit to transparency and the exchange of statistical data. Participants can only legally trade with other participants who have also met the minimum requirements of the scheme, and international shipments of rough diamonds must be accompanied by a KP certificate guaranteeing that they are conflict-free."

The KP does not concern itself with other human rights abuses including child labor, state sanctioned violence, and worker exploitation and poverty.- http://www.nytimes.com/2006/12/29/world/americas/29diamonds.html?_r=1.This makes the process a partial solution to the problem.The other part is for Government leaders to be accountable to the communities from which these diamonds have been discovered.Many areas which have discovered these diamonds remain poor and under develop0ed.There are no schools,clinics ,hospitals and other basic infrastructure or clean running water.Chiadzwa remains poor and underdeveloped.

The Government of the Northwest Territories of Canada (GNWT) also has developed a unique and effective certification program. They offer a Government certificate on all diamonds that are mined, cut, and polished, in the Northwest Territories of Canada. Each diamond is also laser inscribed and recorded in a database. To obtain this certificate one must cut and polish the diamond in the NWT.This is a lesson which other diamond producing countries such as Zimbabwe can adopt and ensure that the diamond wealth is properly used to uplift the country and not to finance a political party or unjust self enrichment for a few politicans.

The KP implementation is monitored through ‘review visits’ and annual reports as well as by regular exchange and analysis of statistical data between member states.This allows weaker states to adopt sytems and measures which stronger and more established members would have built and developed of the years.

Zimbabwe should be encouraged to remain in the KP which is recognized as an effective conflict-prevention instrument to promote peace and security.The KP has helped stabilise weak and volatile countries and facilitated their development though proper accountability of the diamonds mined and exported.The KP system will help create proper auditing channels backed by statisistics to avoid a few individuals privatizing what is supposed to be a national resource and common heritage monopolized along political lines.

Acknowledgements and Sources
- African Diamond Council ,
- Kimberly Process ,
- Partnership Africa Canada
- GMRI Capital Research

This article appears as courtesy of GMRI Capital ( http://www.gmricapital.com ) prepared for 3MG MEDIA

Gilbert Muponda is a Co-Founder of 3MG Media - ( http://www.3mgmedia.ca ) . He can be reached at;

Email: gilbert@gilbertmuponda.com . Skype ID: gilbert.Muponda

Twitter ; http://twitter.com/gmricapital

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Phone: 1-416-841-5542

Zimbabwe should avoid another ESAP experiment

Recently there have been calls for Zimbabwe to seek debt forgiveness and try to access IMF and World Bank Highly Indebted Poor Country (HIPC) facilities.Whilst such calls may appear reasonable and justifiable Zimbabwe needs to think long and hard before throwing itself further into IMF and World Bank engineered structures and schemes.If not careful Zimbabwe could end up worse off by swallowing these Bretton Woods prescriptions.Zimbabwe must not seek debt forgiveness but rather debt re-scheduling and use its resources wisely like Diamonds and platinum to repay its debt.

This way the country will build credit line faciltities and move away from donor dependence syndrome which has become a challenge for most African nations.Zimbabwe's economic model must be driven by a vision to be strong and independent without relying on donors or lenders whether Chinese or Western.The difference is the same.They have their interests not Zimbabwe's.

Most Zimbabweans would remember ESAP popularly known as Extended Suffering for African People.This was the IMF and World Bank backed Economic Structural Adjustment Programme in the early 1990s.This programme was much publicized and implemented in a way that devastated many Zimbabwean industries such as textiles which suffered from market flooding with cheap Chinese goods and underpriced second hand clothes destroying Zimbabwe's industrial base.


The HIPC Initiative was launched in 1996 by the IMF and World Bank, with the aim of "ensuring that no poor country faces a debt burden it cannot manage.Assistance is conditional on the national governments of these countries meeting a range of economic management and performance targets." Since then, the international financial community, including multilateral organizations and governments have worked together to reduce to sustainable levels the external debt burdens of the most heavily indebted poor countries.

Many critics have attacked HIPC as a program designed by creditors to protect creditor interests, leaving countries with unsustainable debt burdens even upon reaching the decision point.This so because for a country to achieve HIPC status it has to meet several targets and some of these require adjustments which could result in social programmes suffering and unrealistic budget targets being imposed.Zimbabwe is a resource rich nation and should focus on properly accounting for its wealth and resources in a manner that creates wealth plus service its debt.

The focus on seeking debt forgiveness only will result in the country becoming donor dependent,weak and poor.As a matter or priority and national economic security Zimbabwe needs to embrace the Kimberly Process which can help the country handle its newly found diamond wealth.This wealth can then be wisely used to build a solid financial base and create jobs.

By late 2009, the HIPC program had identified 40 countries (29 of which are in Sub-Saharan Africa) as being potentially eligible to receive debt relief.Some of the countries include Ghana,Somalia and Ivory Coast.Some of the countries in this list have been classified as poor for a very long time.Despite subscribing to IMF and World Bank policies they remain poor and struggling.Which leads to the question can a country really succeed and develop using IMF and World Bank ideas and structures?In economic circles its a well known saying that never mis-manage your economy to such an extent that you ever end up needing the IMF or World Bank.

"In 2005, to help accelerate progress toward the United Nations Millennium Development Goals (MDGs), the HIPC Initiative was supplemented by the Multilateral Debt Relief Initiative (MDRI). The MDRI allows for 100 percent relief on eligible debts by three multilateral institutions-the IMF, the World Bank, and the African Development Fund (AfDF)-for countries completing the HIPC Initiative process."

For a country be considered for HIPC Initiative assistance, a country must fulfill the following four conditions:

A) be eligible to borrow from the World Bank's International Development Agency, which provides interest-free loans and grants to the world's poorest countries, and from the IMF's Extended Credit Facility, which provides loans to low-income countries at subsidized rates.

B) face an unsustainable debt burden that cannot be addressed through traditional debt relief mechanisms.

C) have established a track record of reform and sound policies through IMF- and World Bank supported programs

D) have developed a Poverty Reduction Strategy Paper (PRSP) through a broad-based participatory process in the country.

The HIPC is particularly not trusted in most poor and developing nations because the IMF and the World Bank do not cancel any debt until the completion point, leaving countries under the burden of their debt payments while they struggled to institute the suggested structural reforms. In addition the Economic Structural program conditions often undermined poverty-reduction efforts as they are insensitive to other poverty fighting measures and programs designed to combat such challenges as AIDS,Orphans,Provision of clean water and general measures to fight disease.

Since the Gideon Gono induced hyper inflation nightmare days Zimbabwe may become easy prey for Lenders such as the IMF and World Bank and join programs that are not well thought out.The key for Zimbabwe is to take stock of its resources and other assets such as human resources including exiled Zimbabweans to come up with a home grown recovery process whilst incorporating some of the ideas which may come from bodies like the IMF and the World Bank.The critical part is to avoid approaching these Institutions without our own plan.Zimbabwe should draw up the plan and then seek input from IMF and World Bank rather than the other way round.

This article appears as courtesy of GMRI Capital ( www.gmricapital.com) prepared for 3MG MEDIA

Gilbert Muponda is a Co-Founder of 3MG Media . He can be reached at;

Email: gilbert@3mgmedia.ca . Skype ID: gilbert.Muponda

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542

ZANU PF already rigging the next election

In a recent newspaper article entitled “Zanu PF wants retention of old executive order” Zimbabwe’s former ruling party ZANU-PF is proposing various ideas for the new constitution. On citizenship and bill of rights, only children born in the Diaspora would be allowed dual citizenship. This immediately creates two Citizenship classes in one family. Legal family division starts and is imposed by the state. This is not progressive and is just designed to excluded exiled Zimbabweans from voting and participating in National affairs and Nation building.
Clearly Zimbabwe’s former ruling party – ZANU-PF is already trying to rig the next election by excluding all non-resident Zimbabweans from participating in the new constitution and from voting. Some statistics indicate more than 30 % of Zimbabwe’s population lives outside the country in countries such as Botswana, South Africa, UK,USA, NZ, Canada etc. This means any election which doesn’t allow non resident Zimbabweans to vote is clearly a manipulated election which does not represent the views of a majority of Zimbabweans.
There is a disturbing trend that seems to suggest that one is less of a Zimbabwean just by not being based in Zimbabwe. This idea is being promoted by politicians who feel exiled Zimbabweans may not be supportive of certain policies and ideas. Exiled Zimbabweans have played a critical role in keeping Zimbabwe from total collapse through remittance of millions of dollars every month. This is the money that keep the country going when there was not International Bank or Institution prepared to lend money to the nation. And the Diaspora is being stripped of voting rights and Citizenship as a thank you for keeping the country going?
The attempt to allow children born in the Diaspora dual Citizenship whilst forbidding their parents is a well calculated election rigging scheme by ZANU PF. Firstly the calculation is that these children born in the Diaspora are mostly still too young to vote. And secondly even if when they are old enough most of them are unlikely to be too keen to involve themselves in the politics of Zimbabwe, a country they will hardly know as most will not grow up in the Country. Thirdly these children may not have a correct perspective of Zimbabwe’s history for them to be able to take positions which their parents may see as more informed.
Zimbabwe loses nothing by allowing multiple citizenship. Multiple citizenship is a status in which a person is concurrently regarded as a citizen under the laws of more than one state. Multiple citizenships exist because different countries use different, and not necessarily mutually exclusive, citizenship requirements.
Many progressive countries consider multiple citizenship desirable because it increases opportunities for their citizens to compete and build contacts globally, and/or have taken active steps towards permitting multiple citizenship in recent years (e.g., Australia since April , 2002). India, has introduced a form of overseas citizenship
In order for the New Constitutional consultation process to be successful or at least gather pace, there is need for a UN involvement which will make funding flow much more easily as donor longer trust Harare administrators.

In some cases, multiple citizenship can create additional tax liability for the exiles. Countries that impose tax will generally use a combination of three factors when determining if a person is subject to taxation. This is an area that the New constitution must carefully considered before trying to strip Diaspora Zimbabweans of the voting and citizenship rights.

Residency - a country may tax the income of anyone who lives there, regardless of citizenship or whether the income was earned in that country or abroad
Source - a country may tax any income generated there, regardless of whether the earner is a citizen, resident, or non-resident; or
Citizenship - a country may tax the worldwide income of their citizens, regardless of whether they reside in that country or not.
Investment – The Diaspora has been investing seriously in Zimbabwe’s real estate by buying investment and rental properties. Zimbabwe is desperate need for investment and it is not progressive or wise to seek to strip voting and citizenship rights from people who have shown so much commitment to their country.
Even for the elections, there is need to involve more accountable and respected Institutions such as the United Nations in the confirmation of the electoral roll, constituency boundaries and the actual monitoring of voting.

The 2008 election only showed that Zimbabwe can be Democratic and the people’s will can be and will be respected. One thing is for sure the toothpaste that cannot be squeezed back into the tube. There is a general trend for Zimbabweans to move with the times and not be divided by ethnicity or social class. The current attempts to grant different citizenship class between parents and children born in the diaspora must be exposed then resisted at all costs. This is not Nation building but rather a self serving scheme for politicians to exclude anyone who they feel may not subscribe to their policies.
Of late Zimbabwe’s history is one of persecution and forced migration, and as such the only thing that you can be sure to bring with you up when you're forced out of your home or country is your brain, effort to be recognized and power to network and work as a group with a common purpose. This is what Zimbabwe’s Diaspora desperately needs to work on and avoid being excluded from National affairs under various excuses.
This article appears as courtesy of GMRI Capital ( www.gmricapital.com) prepared for 3MG MEDIA

Gilbert Muponda is a Co-Founder of 3MG Media . He can be reached at;

Email: gilbert@3mgmedia.ca . Skype ID: gilbert.Muponda

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542

New Constitution process must involve Diaspora Zimbabweans

The Constitution drafts circulated in 2000 were both written by a few individuals, and members of the public only got involved when they were asked to vote for or against the government's version. This is the period when Professor Jonathan Moyo performed one of his most dramatic chameleon shifts morphing from arch Mugabe critic to become the spokesman of the Government backed Constitution draft.The 2000 Constitution process was driven by few wise men and the same format is being followed with the Diaspora input being ignored. There is no visible effort to involve Zimbabweans abroad despite a misdirected effort in attempting to tax Diaspora Zimbabweans.

The 2000 Constitution making process was reduced to no or yes vote when it was clear the process leading up to that constitution was marred by irregularities .The same path is being followed now. One wonders what is the wisdom of expecting to reach a different destination when you use the same road.

The Constitution Parliamentary Committee (COPAC) intends to use extracts from various existing drafts and somehow end up with a modern and progressive Constitution. A constitution must take into account the nation’s vision and aspirations.

The Constitutional process is part of a delicate nation building process. As such Zimbabweans across the world must be consulted and their views and aspirations taken into account when drafting a new constitution. It is mischievous to task a Zimbabwean who has never been based in the Diaspora to draft a new constitution on rights of Zimbabweans based abroad without consulting those Zimbabweans. There is a clear need to involve the Zimbabweans abroad in the constitution making process.

Out reach teams need to reach out to the Diaspora. Clearly there is need for Diaspora based Constitutional Commission members who can clarify the needs and views of foreign based ZImbabweans. The current format is based on system of Thematic committees that will present questions to members of the public, and their answers will be gathered into the talking points, which will then be debated. These committees must find their way to consult Zimbabweans based in UK,USA,NZ, Australia, South Africa, Canada and many other countries where significant numbers of Zimbabweans live.

Individuals in thousands of meetings across the country will be able to draw their suggestions from any document they choose - including the Constitutional Commission draft rejected in 2000, the alternative draft put forward at that time by the NCA, or the Kariba draft drawn up by the negotiating teams that produced the Global Political Agreement that brought a bitter post-election struggle to a close in September 2008. Zimbabwe’s Economy is currently in a very weak state mostly due to various policy shifts, laws and regulations which were devised to serve interests of a few individuals. The new constitution must focus a creating various institutional checks and balances that make it difficult if not impossible for those in power to manipulate laws which results in Economic chaos due to a hostile environment created by abusing the laws.


An individual should be allowed two presidential terms of four years each. Limited to 2 terms of 4 years each for the President for each individual. This must be clearly spelt out in the constitution. This will ensure that the country will not be stuck for another 3 decades under the grip of one “wiseman” .Even the wisest of men deserve to reset and give others a chance.

Media Independence must be protected and the abuse of state broadcasting and media infrastructure must be stopped and clearly outlined .The current set up where a ruling party can privatize state media resources is a national threat as politicians monopolize the service and abuse state media .State media should not be a propaganda tool for any ruling party. It must remain objective and serve to inform, entertain and educate the nation without bias towards any political party. These are guidelines which must be clearly spelt out in the new constitution to ensure that the next election is held under an even political field.

Issues such as black empowerment and localization of the economy must be address during the Constitution making process. It is important that such sensitive and important issues be covered under this process to avoid the current situation whereby a law appears to be meant to aid and abet a political patronage network rather than further national goals and vision


Dual Citizenship possibility must be clearly addressed and be part of the Constitution. Zimbabwe stand to lose a significant amount of skilled and experienced personnel if the rules are not changed to encourage Zimbabweans to retain their Citizenship and linkages to the Country. The Constitution must allow dual citizenship as this will act as an incentive for foreign based Zimbabweans to remain engaged in the development of the country. Most progressive nations allow dual citizenship and this is a critical area which requires direct input from Zimbabweans in the Diaspora.

Political Party funding must be proportional based on the number of actual votes gained and not on the number of seats won. This will serve to encourage participation by more political players allowing a more vibrant democracy not hindered or manipulated by lack or availability of resources. The current situation of basing Political Funding on the number of seats won has created a situation which eliminates other hopeful political players to join as they are disqualified fro funding. As an example Mavambo managed to get approximately 10% of the vote. This means Mavambo should at least have qualified for a proportionate funding from the state similar to what MDC-M,MDC-T and ZANU-PF got.

This article appears as courtesy of GMRI Capital ( www.gmricapital.com) prepared for 3MG MEDIA

Gilbert Muponda is a Co-Founder of 3MG Media . He can be reached at;

Email: gilbert@3mgmedia.ca . Skype ID: gilbert.Muponda

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542

Zimbabwe Diaspora Tax a wrong idea and misdirected effort

The recent discussion paper from some Zimbabwean Academics based in the UK makes sad reading especially when they propose a Non Resident Tax aimed specifically at expatriate Zimbabweans based across the world. The idea must be totally rejected and exposed as another scheme to over burden an already over-stretched section of Zimbabwean population. The Diaspora is already facing multiple taxation; this must not be worsened by the ill advised idea of an additional Diaspora tax.

The Zimbabwean Diaspora population has already played a critical role in keeping Zimbabwe from total collapse. During the peak of the Economic meltdown induced by poor policies and bad Governance Zimbabwe was kept afloat by remittances from the Diaspora. Minister Biti recently confirmed that the Diaspora had remitted more than US$ 160 million this year.

This amount is a material amount which has assisted to maintain Zimbabwe from collapsing into a failed state .It is unfortunate that instead of showing some gratitude to the Diaspora Community certain sections remain determined to keep squeezing the Diaspora. It would be good for a change for the Diaspora to start receiving some thanks, concessions and appreciation.

During Prime Minister Tsvangirai’s world tour in June 2009 as some will recall he was booed by the Zimbabwean Community when he proposed they return home. After that debacle I wrote to the Prime Minister Link http://muponda.blogspot.com/2009/06/june-2009-letter-to-prime-minister.html . Diaspora Zimbabweans are mostly committed to their country but it appears this has been a one Way Street as those in Zimbabwe have not been willing to readily acknowledge the critical role being played by the Diaspora.

There are important issues that remain out standing which must be addressed before the Diaspora is forced to finance what is other wise a “forced” Government of National Unity (GNU). Firstly Zimbabweans in Diaspora must be allowed the following;

(1) Dual Citizenship
(2) Right to Vote
(3) Diaspora based Members of Parliament and Senators
(4) Tax Credits for any investment made in Zimbabwe
(5) Import Duty Waiver status

These are minimal conditions which must be afforded the Diaspora without any link to paying the new proposed tax. These are rights which the Diaspora Zimbabweans have already earned and should be granted before a new tax is proposed.

The attempt to link the new tax to Citizenship is both illegal and mischievous. The Diaspora Community has been taken for granted for too long which has led to this misdirected effort that Diaspora needs to pay additional tax to maintain Citizenship or to be allowed to vote. This is illogical as it suggests someone should buy what already is a birth right. This type of thinking is not progressive and will only lead to resentment by the Diaspora Community .And those in the Diaspora need to be more proactive and be more organized otherwise your hard earned money will be spent and budgeted for you by some politician in Harare.

This article appears as courtesy of GMRI Capital ( www.gmricapital.com) prepared for 3MG MEDIA

Gilbert Muponda is a Co-Founder of 3MG Media . He can be reached at;

Email: gilbert@3mgmedia.ca . Skype ID: gilbert.Muponda

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542

Nestle Company Closure Drama Affects Investor Confidence

The recent forced closure of the Nestle Milk Factory in Zimbabwe clearly shows that Zimbabwe’s ruling elite operate a mafia like protection racket aimed at independent businesses and business people. This trend has negatively affects investor confidence and will hinder Economic recovery effort as investors become jittery

There is clear evidence of abuse of political power to gain a business advantage and intimidate investors to make decisions they would otherwise not have made were it not for the presence of a mafia like protection racket being run from the highest office. Reports indicate that the Company has now been offered protection and its staff members safety has been guaranteed.

In a statement late last week (http://allafrica.com/stories/200912250004.html) , Zimbabwe’s Industry and Commerce Minister Professor Welshman Ncube said he had held consultations with Nestlé Zimbabwe, Gushungo Dairies and other "key stakeholders in the dairy sector".Gushungo Diaries is a Business owned and controlled by Zimbabwe’s First family. These negotiations come after Nestle had been forced to close down its operations and endangering several thousand jobs.

The company said, in its statement through AFP, that on Saturday the factory was visited by Zimbabwean "officials" and police, and forced to accept a tanker of non-contracted milk. In a normal country a client can never be forced to take delivery from a non contracted supplier. The contracts are normally there for a purpose including to enforce hygienic standards and avoid ruining the concerned Firm’s reputation by doing business with entities that may have questionable standing.

Reports show that Two Nestle managers were questioned by police but were released without charge after questioning the same day. The “questioning “of managers is clearly an intimidatory tactic employed by corrupt Governments to squeeze favors and bribes from business. This makes Zimbabwe a high risk investment destination. At a time when the country is trying to attract additional Foreign Direct Investment (FDI) this is ill advised for a Company owned by Zimbabwe’s President and his wife to be harassing a foreign investor. What message is this sending to the investing community?

The statement by Minister Ncube continues "As a result of those consultations, the parties have collectively reached an understanding to work together in ensuring that milk produced at Gushungo Dairies is absorbed by the local dairy processors.

"For its part, Government has given its assurance on the safety of staff and management at both Nestlé Zimbabwe and Gushungo Dairies," said the statement.

The latest drama comes a few months after Reserve Bank of Zimbabwe Governor Gideon Gono had temporarily frozen Nestlé’s Bank accounts (http://allafrica.com/stories/200910090831.html). The account freezing incident last for a few weeks to allow “investigations”. An investigation report was never made public as to the findings of this seemingly dubious investigation.

This is a disturbing trend of how Zimbabwe’s leading politicians are poisoning the business environment by grabbing all business opportunities whilst scaring potential investors. Only a few weeks I was highlighting how Vice President Joice Mujuru and her Husband are using their investment front Interfin Merchant Bank to take over my disputed Bank – CFX/Century using brute political force. The take over of CFX /Century Bank by the Mujuru’s through their Bank Interfin despite my protestations show the level of unrestrained self enrichment spree which must be documented and stopped. And if the Nestle /Gushungo Diaries drama is added to the picture it clearly confirms that Zimbabwe’s ruling elite will stop at nothing to control all businesses despite their proven lack of experience in such businesses.

Whilst the protests on Gushungo Diaries and Nestle were based on the fact that the First Family did not pay a fair price for the Gushungo farm and its previous owner was haunted off the farm and forced to accept a token price it matches into the Mujurus’ modus operandi of buying a disputed CFX Bank despite clear evidence that the Bank was looted and unjustly taken from its previous owners. The common denominator being the reliance of political muscle to protect such ill gotten wealth.

If Zimbabwe is to attract fresh and meaningful investment this way of doing business must end. The use and abuse of political office to grab businesses or launder ill gotten wealth must be exposed and discouraged.

This article appears as courtesy of GMRI Capital ( www.gmricapital.com) prepared for 3MG MEDIA – www.3mgmedia.ca
Gilbert Muponda is a Co-Founder of 3MG Media . He can be reached at;
Email: gilbert@3mgmedia.ca . Skype ID: gilbert.Muponda
www.facebook.com/muponda
Twitter ; http://twitter.com/gmricapital
Phone: 1-416-841-5542

Interfin Bank Zimbabwe true owners exposed

Interfin Bank are trying to take over my Bank Century/CFX Bank using political muscle and connections. This must be documented and stopped.

At this time its important to pierce the Corporate veil and expose the true beneficial owners of Interfin Bank Zimbabwe. Information obtained last week shows that Interfin Bank Zimbabwe is a ZANU - PF Bank disguised as a commercial venture. The beneficial owners of Interfin Bank Zimbabwe are a Group of ZANU PF Politicians led by Vice President Mujuru, Her Husband General Solomon Mujuru, Former Governor Raymond Kaukonde, Empowerment Minister Saviour Kasukuwere and Former ZANU PF Finance Minister Simba Makoni.These are the real owners of Interfin owning the Bank on behalf of ZANU PF .

Interfin Bank Zimbabwe are trying to buy Century/CFX Bank which was illegally seized from me hoping the ownership problem will disappear by rebranding the Bank and renaming it Interfin Commercial Bank. The hope to hide the tracks of the theft and fraud by changing colours,brand and outside appearance of a stolen asset. This is the trick which CFX Bank tried when they fraudulently took over Century Bank Assets and tried to rebrand it into CFX Bank dropping the name Century from the rebranded Bank.

It appears Interfin Bank have decided to inherit Century/CFX Bank ownership problems. By trying to swallow an illegally acquired asset Interfin is now becoming party to money and transaction laundering. And this has its own benefits ,and consequences.

The trend in Zimbabwe is that once a Bank or Asset is illegally seized there is an immediate need to rebrand it.Intermarket Bank was swallowed by ZB Bank. Beverly Building Society was rebranded to CBZ Building society. Trust, Barbican and Royal Bank were rebranded as ZABG.It is clear there is now a preferred modus operandi of seizing assets and renaming them and rebranding them. It is clear Interfin are trying to take over my Bank Century/CFX and then proceed to rename it and rebrand it as Interfin Commercial Bank since they desperately need the vast commercial Bank network and infrastructure owned by my Bank Century/CFX bank. This must be documented.

When the illegal sale of my 309 million Century Bank Shares was done on or around 12 May 2004 I through my lawyers Ziweni and Company filed a high court application to block the sale of the shares. This record should still be there at the Harare High Court. As soon as we filed this application I was then specified without a hearing. This limited my ability to follow up the application. My lawyer and his firm was also specified. Leaving me without legal representation on the matter. This was all done to ensure that the 309 million shares are sold, transferred and Century/CFX Bank is snatched from my Company – ENG Capital.

I have created a website to document Interfin's attempt to legitimize an illegal transction.The website is http://interfinbank.blogspot.com/