By Jeremiah Wakaya

Nairobi — The Universities Academic Staff Union (UASU) has said it will reject a Sh10 billion counter-offer by the government extended to lectures to end the ongoing strike.

In a statement released Sunday, UASU Secretary General Constantine Wasonga termed the offer by the State as inadequate, saying it only translates to a three percent increment on the basic salary of lecturers and a 1.6 percent increase on house allowances.

“Tomorrow (Monday), UASU will attend a negotiation meeting with IPUCCF at 2 pm; during which UASU will formally reject the Sh10 billion counter-offer to all varsity staff which translates into a paltry 3pc compounded increment on basic salary and 1.6pc increment on house allowance,” Wasonga said in a statement.

UASU, together with Kenya University Staff Association (KUSA) and Kenya Union of Domestic, Hotel, Educational and Allied (KUDHEA) workers union, began negotiations with the Inter Public University Consultative Council Forum (IPUCCF) on Wednesday following the Sh10 billion offer by the State.

A Joint Negotiations Committee (JNC) comprising representatives from the three unions and the IPUCCF however resolved on Thursday to form a joint technical sub-committee which was tasked with computing the impact of the Sh10 billion offer on the salaries of university staff, something that still remained unresolved by close of business on Friday.

“The joint negotiations committee re-convenes on Friday at 11am to evaluate the impact, if any, of the counter-offer on the terms and conditions of service of varsity employees,” Wasonga said on Thursday.

UASU also intends to present a petition to the National Treasury and Parliament on Tuesday as it escalates the industrial action which enters its fourth week Wednesday midnight.

According to Wasonga, all lecturers will assemble at the University of Nairobi on Tuesday, before proceeding to the two institutions in to present their petition.

“This Tuesday, 14th February; UASU members will present a Petition to the Treasury and Parliament, in accordance with the terms under Articles 37, 94, 95 and 96 of the Constitution of Kenya.”

The three unions – UASU, KUSA and KUDHEA – commenced a nationwide strike on January 18, demanding for the negotiation, signing, registration and implementation of a Collective Bargaining Agreement (CBA) for the period between 2013-2017 as fears of losing it became imminent with the end of current Fiscal Year 2016/2017 approaching.

By Ndapewoshali Shapwanale

PRESIDENT Hage Geingob on Friday called for teamwork and rededication to address the twin issues of housing and land shortages.

He made the call at the launch of the Harambee Housing Initiative in Windhoek when he handed over a house built with alternative building materials to Otjomuise resident Abed Philip and his family.

The house was donated to the Namibian government by the German PolyCare Research Technology GmbH& Co.KG that introduced its building technology at the Invest in Namibia conference, held in Windhoek from 8-9 November last year.

“This is the year of rededication, and it is in this spirit that I, as the head of the ‘Namibian House’, once again reaffirm my personal commitment to addressing land reform and the provision of affordable housing to all Namibians,” Geingob said.

He said while Namibia has achieved much since independence, a lack of adequate land and housing remained contentious issues. The Harambee plan identified residential land delivery, housing and sanitation as necessary for social progress.

“In the interest of ensuring a dignified life for all Namibians, government has undertaken several initiatives to tackle the issue of a lack of decent housing in the country,” Geingob said, adding that the provision of adequate and affordable housing was a primary weapon in the war against poverty.

Commending the urban development ministry and the contractor, Kavango Block Brick, for transforming a shack into a house, the President said it was only through unity and teamwork that the promise of providing all Namibians with sustainable human settlements could be delivered.

According to Geingob, the task of delivering land and decent housing to Namibians who have been left out due to past injustices would be a mammoth one.

However, if all stakeholders remained committed to working together in the spirit of harambee, a prosperous future for the Namibian House could be safeguarded.

“We are cognisant of the fact that the need for housing outmatches government’s existing resources. Nevertheless, I am confident that if we all rededicate and commit ourselves to helping our fellow Namibians, and look beyond our own self-interests by considering the needs of others, then we will be able to meet the demand for housing,” Geingob stated.

Urban development minister Sophia Shaningwa said the donation of the house was made possible through collective efforts, and that she was pleased that financial institutions such as Standard Bank and NamPost have indicated their support for alternative building materials.

She said government has acknowledged that it could not solve the housing problem alone, and the ministry would thus support public-private partnership arrangements to assist in solving the housing issue.

“The houses will not be given for free. Citizens who want housing are encouraged to start saving money for the houses that are going to be constructed under the initiative,” the minister added.

Prime Minister Kassim Majaliwa yesterday ordered special audit of the national flag carrier, Air Tanzania Company Limited (ATCL) to establish the level of its performance.

Speaking during his visit to the airline headquarters in Dar es Salaam, the premier directed the Controller and Auditor General (CAG) to audit the earnings collections, saying the government was not ready to see the airline collapsing again after all initiatives to revive its operations.

“I’ll direct the CAG to probe the earning collections by ATCL since the government decided last year to revive the operations up to now to establish revenue collection performance,” said Mr Majaliwa. Last September, ATCL got a big boost after acquiring two CS300 Bombardier jetliners to enhance performance after years of operational dilly-dallying.

Speaking to ATCL management, Mr Majaliwa challenged the team to ensure the airline registers great achievements, thanks to the government’s resolve to revive the national flag carrier. He ordered ATCL management to start using electronic receipts to protect the firm against treachery, warning against the use of traditional receipts in ATCL transactions.

“We have ordered all payments to be done electronically to prevent any loss of money… the electronic payments have proved to be of great use in protecting the public money,” observed Mr Majaliwa.

The premier as well directed acting Finance and Administration Director Witness Mbaga to conduct assessment on the earning collections from the cargo area to avoid any loss of income.

“The management should ensure that the airline keeps time to avoid losing customers,” he said.

Coffee sold at Moshi Exchange increased to 7,668 bags compared to 5,564 bags of the previous auction supported by price surge driven by high global demand.

According to the auction results released by the Coffee Board of Tanzania (TCB), the overall average prices were up by 5.85 US dollars per 50 Kgs bag for Mild Arabica compared to an increment of 0.95/50US dollars for the same volume in the previous auction.

The Bank of Tanzania (BoT) monthly economic review for December shows that the prices of coffee (Arabica) went up mainly due to high global demand. Moshi Exchange average prices were above the terminal market by 4.03 US dollars per 50 for Mild Arabica.

The amount of coffee supplied at the Moshi Exchange increased to amount offered 9,759 bags in the last auction compared to 6,709 bags offered in the previous session.

The New York coffee May delivery were up by 3.35 US dollars equivalent to 3.69 per 50kgs Free on Board and London (LIFFE) market May delivery were up by 12 US dollars per metric tonne equivalent to 0.60 per 50kgs FOB compared to last week terminal market.

According to the TCB, the next auction will be held today.

By Henry Boyo

It seems strange but true that the more dollars we earn, the more are the challenges of Excess Naira liquidity, inflation, higher cost of funds and a weaker naira exchange rate. The above title was first published in Punch and Vanguard newspapers in January 2014. Please read on.

“The Punch Newspaper recently carried a report titled “CBN Defended Naira with $26.6bn in 2013.” The report obtained from the Central Bank’s website, indicated that $26.6bn was sold to currency dealers in 94 foreign exchange Dutch Auctions between January and December 2013.

Indeed, in consonance with Lamido Sanusi’s promise to maintain stability, the official naira exchange rate has inexplicably remained stagnant between N153 and N156=$1, despite our increasing foreign reserve base. Regrettably, however, the unofficial (street market) rate has gradually moved from a deviation of N1 or N2 to N20/$; thus, an ‘ingenious’ bank or Bureau de Change could easily make a monthly profit of about N20m by simply buying $1m directly from CBN’s allocations and selling same dollars elsewhere!

The resultant abuse of CBN’s wholesale forex auctions inevitably induced unbridled capital flight, characterized by huge bulk movements of hard currency through our airports and other land and sea borders. The CBN’s recent reintroduction of the earlier discredited Retail Forex Auction, once more restricted direct sales of foreign exchange specifically to end users, in place of the speculative hoarding by banks, under the Wholesale Auction System.

Furthermore, CBN also reduced its weekly dollar allocations to BDCs from $1m to $250,000; regrettably, however, despite (or maybe we should say because of) these measures, the clear shortfall in dollar supply to the open market has instigated a widening gap between official and Bureau de Change rates.

Invariably, therefore, the naira exchange rate mechanism has persistently been a clear case of the tail wagging the dog, as higher parallel market rates ultimately determine official rates.

The naira exchange rate is further characterized by the paradox of depreciation despite significant increases in dollar revenue and imports cover! For example, the naira rate remained consistently at N80/$1 between 1994 and 1998, despite barely $4bn total reserves, while it has officially fallen below N150/$1 despite the buoyant reserves consistently remaining above $40bn with more than 10 month’s demand cover in recent years!

Inexplicably, however, in 2012, the IMF recommended a further official naira devaluation, to reduce the size of government spending and budget deficit, and presumably also to restrain the spiralling inflation, fuelled by the stifling persistent systemic naira surplus!

Nevertheless, with heavy unemployment (over 25%) particularly amongst youths, and an inflation-ravaged economy, discerning critics and observers might see IMF’s prescription to reduce government spending as ironically socially antagonistic!

Undoubtedly, the universal antidote for low consumer demand and high unemployment is to increase government spending, and pursue an expansionary monetary strategy to instigate job creation and stimulate demand. Consequently, IMF’s recommendation and CBN’s inappropriate tight monetary policy instruments, which conversely fuel inflation, and trigger high cost of funds in excess of 20%, will invariably only deepen poverty nationwide!

Nonetheless, some observers blame our parlous economy and weak naira on our ‘inability’ to diversify our economy. However, such observers have never satisfactorily explained how our economy can be diversified when the systemic growth engine of SMEs is constrained by high cost of funds, and low consumer demand caused by dwindling job opportunities, plus the increasingly low-income values, induced by oppressive inflation.

Conversely, however, I have rightly consistently observed for several years, that our economy will remain distressed and unable to satisfactorily diversify because of CBN’s unconstitutional capture of our export dollar revenue and the substitution of exclusively naira payments for monthly allocations to constitutional beneficiaries.

Furthermore, CBN has belatedly recognized the poisonous impact of commercial banks’ ability to leverage on the monthly heavy inflow of naira allocations, which precipitate the unending spectre of excess cash, and the attendant necessity for CBN to reduce such surplus naira and contain inflation by borrowing from the same commercial banks at oppressive rates of interest.

Unexpectedly, however, the apex bank inexplicably turns round thereafter, to sequester the same loans as idle surplus, which cannot be applied for infrastructural enhancement or appropriation!!

Indeed, it is also instructive that CBN’s cache of self-styled “own dollar” reserves which were accumulated from the substitution of naira allocations actually increases in tandem with the burden of increasing naira surplus and deepening poverty nationwide!

Incidentally, CBN’s current ‘own reserves’ of over $40bn is not also available for reducing our nation’s increasing strangulating debt burden; curiously, however, the apex bank still consciously seeks opportunities to invest ‘its dollar reserves’ in foreign economies, despite the paltry yields associated with such investments!

Nonetheless, CBN Governor, Lamido Sanusi confirmed in his controversial letter of September 25, 2013 on the subject of the “$49.9bn Unremitted Oil Revenue” to President Jonathan, that the treasury had received about $22bn as at July 2013 for oil exports. Consequently, since oil prices remained consistently over $100/barrel, cumulative oil earnings should probably have exceeded $40bn in 2013.

Thus, with the practice of CBN’s usual substitution of naira allocations for dollar revenue, naira cash supply would increase by over N6tn (i.e. N155/$1), while commercial banks could also leverage almost tenfold on the fresh naira inflow, with the present relatively modest Cash Reserve Requirement to create systemic naira liquidity of about N60tn. Consequently, the total available spendable naira unleashed on the system can adequately purchase over ten times (i.e. over $400bn) the $40bn possibly earned from crude oil sales in 2013!

It is therefore, obvious that CBN’s substitution of naira allocations for dollar denominated revenue actually weakens the naira exchange rate!

Worse still, CBN’s confirmation that only $26.6bn (i.e. 65%) out of the total $40bn revenue collected was auctioned, suggests that naira exchange rate would clearly be under greater pressure if 35 per cent of the dollars earned (i.e. about $14bn) was short-supplied in CBN’s dollar auctions, despite the earlier provision of full naira cover for the total actual revenue of $40bn! It is not rocket science to deduce that systemic surplus naira simultaneous existing with such rationed dollar supply, will deliberately, artificially skew the exchange rate mechanism in favour of the dollar!

So, while it is true that CBN sold $26.6bn in foreign exchange auctions in 2013 as per the Punch newspaper headline, it is not true that the sales procedure realistically defended the naira exchange rate; if anything, CBN’s monopolistic rationed dollar auctions, after consciously flooding the system with naira allocations, should more appropriately be recognized as a contrived mechanism to continuously depreciate the naira, especially more so, whenever we earn increasingly more dollars!”

SAVE THE NAIRA, SAVE NIGERIANS!!

Beirut — Egyptian prosecutors should drop all charges against at least 26 workers who were arrested and charged in recent months in connection with peaceful strikes and protests, Human Rights Watch said today. The parliament should also revise a new trade unions draft law to fully legalize independent unions and amend penal code provisions that criminalize the right to organize and strike.

Since May 2016, police have arrested scores of striking workers from various industries. Most were later released, but prosecutors have referred dozens for trial, including some before a military court.

“Arresting workers for striking is another example of how Egyptian authorities are determined to stifle all space for peaceful mobilization,” said Joe Stork, deputy Middle East and North Africa director at Human Rights Watch.

In January 2017, prosecutors charged 19 striking workers at an oil products factory in Suez with inciting a strike and halting production, though all were acquitted in a trial later that month. In December 2016, security forces arrested at least 55 striking workers at the Egyptian Fertilizers Company, and prosecutors summoned eight for investigation. On September 26, Kamal Abbas, a member of the government-sponsored National Council for Human Rights and head of the independent Center for Trade Union and Workers’ Services (CTUWS), wrote to the Interior Ministry regarding the National Security Agency’s “disappearance” of six workers from the Public Transport Authority following raids on their homes two days earlier. On September 28, following a news conference by families of the missing workers, the six workers appeared before prosecutors who accused them of belonging to an unidentified banned group. In May, military prosecutors referred 26 Alexandria Shipyard Company workers to a military court on charges of inciting strikes.

The January strike in Suez followed a sit-in at the privately owned IFFCO oil products factory in the last week of December seeking an equal distribution of bonuses between workers and supervisors. The workers decided to strike after Interior Ministry officers arrested two members of the IFFCO Independent Workers’ Union who had been participating in the sit-in, according to a workers’ statement published in local newspapers.

The CTUWS said that National Security officers demanded that union leaders end the strike and then police arrested 13 striking workers on January 2. Prosecutors summoned another 10 for questioning on the same day and referred 19 to a minor offenses court on charges of inciting a strike, halting production, and sabotaging factory properties. Though the court acquitted the workers, the factory administration can appeal the decision. Activists told Human Rights Watch that, according to workers, 26 people were later fired, including the 19 who were acquitted.

Union leaders at the IFFCO factory demanded a larger share of bonuses after the prices of everyday goods in Egypt rose dramatically when the government floated the Egyptian pound in early November, a requirement for a US$12 billion International Monetary Fund (IMF) loan package. Since then, the pound has lost more than 100 percent of its value, and the IMF has estimated that inflation will rise to 18 percent.

Egyptian authorities greatly restrict the ability of workers to mobilize independently, and the penal code criminalizes strikes and workplace sit-ins in articles 124 and 125, with sentences of up to two years, despite several administrative court rulings that have upheld the right to strike.

Kamal Abbas, the CTUWS leader, told Human Rights Watch that the government-controlled Egyptian Trade Union Federation (ETUF) sent a letter to the administration of the Suez oil products factory saying that the independent workers’ union, which had signed two collective bargaining agreements with administrators in 2012 and 2015, was illegal. The IFFCO Independent Workers’ Union could be shut down as a result.

The government has never legalized the independent labor unions that proliferated after the 2011 uprising, while officially recognized unions have not held elections for 11 years, and successive governments have appointed union leaders, most recently in January.

In June, an administrative court sent the current, restrictive 1976 law on unions for review, stating that “the [ETUF] was not capable of expressing workers’ grievances and hopes whether before the state or business owners.” To Human Rights Watch’s knowledge, the Supreme Constitutional Court has yet to take up the case.

In April 2016, Human Rights Watch called on the Egyptian authorities to legalize independent unions and criticized a draft law that would dissolve independent unions and restrict workers’ rights. The cabinet approved a modified draft in July and sent it to parliament on January 25. The current draft would not recognize existing independent unions and would impose prison sentences for establishing unions that do not follow the new law.

The sharp devaluation of the Egyptian pound also led to strikes in November and December at two privately owned fertilizer companies in the Suez governorate, Egyptian Fertilizers Company and the Egyptian Basic Industries Corporation, the independent news website Mada Masr reported. Police dawn raids ended both sit-ins, and police rounded up at least 55 workers, one worker participating in the sit-in told Human Rights Watch. Central Security Force riot police put the arrested workers inside vans and dropped them in a deserted area three hours later, the worker said. Prosecutors detained two for several weeks before releasing them on bail, and the factory administration dismissed six with no explanation, the worker said. The two factories have no unions.

A representative for the Egyptian Fertilizers Company told Human Rights Watch that police tried for 10 days to convince workers occupying control rooms to leave before “very peacefully” ending the sit-in. The workers returned to work the following morning. He said that halting production was a crime and acknowledged that prosecutors summoned several workers, but said the administration had not made complaints against them during the investigations. Workers denied the administration’s allegations that they stopped the production or occupied the control room.

Dawn raids also led to the arrest of six Public Transport Authority workers from their homes in Cairo on September 24, ahead of a planned strike demanding bonuses. Authorities did not acknowledge their whereabouts for four days, CTUWS leader Kamal Abbas told Human Rights Watch, adding that lawyers had not been allowed to obtain a copy of prosecution documents as required by law. Prosecutors accused the six of joining a banned group that prosecutors did not identify, inciting strikes, and disturbing public order, pro-government news websites reported. Two of the workers remain in pretrial detention, while authorities released four pending investigation.

Egypt’s military has also suppressed workers’ actions. In Alexandria, 26 workers of the military-owned Alexandria Shipyard Company have been on trial before a military court since June 21, 2016. A report by the Egyptian Center for Economic and Social Rights (ECESR) said the workers had organized a brief protest inside the company’s premises on May 23 and 24, to demand bonuses, promotions, and safety equipment and tried to negotiate with General Abd al-Hamid Essmat, the company’s executive.

On May 25, military prosecutors ordered 13 workers held pending investigation. One, a woman, was released on bail. Thirteen others were arrested weeks later. Fatma Ramadan, the head of an independent union and a workers’ rights researcher, told Human Rights Watch that military prosecutors relied entirely on a memo from the company to charge the workers with inciting strikes and abstaining from work. Human Rights Watch was not able to review the memo. After several days, the company allowed 1,100 of 2,800 workers to return, the ECESR said.

The shipyard administration told workers they would be released if they resigned, said Abbas and an ECESR lawyer. All the prosecuted workers resigned and were released on bail in groups in October, November, and December, but they still face trial.

Military prosecutors referred the striking workers to military court under the Military Code of Justice, which covers civilian workers in military-owned institutions and does not establish any workers’ rights. The current draft unions law would not change this.

Egypt’s constitution grants freedom of association and the right to strike. Egypt is a state party to the International Covenant on Economic, Social and Cultural Rights, article 8 of which establishes the right to strike, as well as the right to form and join trade unions and national and international confederations. Egypt is also a member of the International Labour Organization and has ratified its eight fundamental conventions.

Parliament should ensure that the draft union law under consideration meets Egypt’s obligations under international human rights law by allowing free and fair union elections and ensuring straightforward legalization procedures for all existing independent unions. Civilian workers in military institutions should be allowed association rights and should never be tried before military courts.

Human Rights Watch wrote to IFFCO, the Public Transport Authority, and the Alexandria Shipyard Company, regarding the incidents but received no responses.

“Instead of arresting and prosecuting workers, the government should amend its laws to guarantee workers’ rights to effective bargaining and mobilization which are essential to effective economic reform,” Stork said.

THIS week the Zimbabwe Independent which in December last year began publishing fresh stories based on our ground-breaking investigation into the Marange alluvial diamonds discovery and subsequent looting exposes how the military’s “Operation Hakudzokwi” resulted in untold suffering, arbitrary arrests and deaths of innocent diamond miners in the hands of state security forces.

This special series is supported by the Investigative Journalism Fund and will continue for months.

The Zimbabwe government decided in October 2008 to deploy the Zimbabwe Defence Forces (ZDF) which comprises the Zimbabwe National Army (ZNA) and the Air Force of Zimbabwe (AFZ) and other security forces to the Marange diamond fields in a bid to take charge of a situation which was threatening to spin out of control.

While purportedly joining the fray in fighting lawlessness and chaos in the mining fields, which the state initially encouraged and fuelled, and helping out, given police’s inability to control turmoil, the military committed grisly human rights violations, including beatings, torture and extrajudicial killings, as well as forced labour and child labour in Marange.

In a swift and brutal operation, the military seized control of the diamond fields, in the process killing more than 200 people in Chiadzwa, a hitherto remote and peaceful yet impoverished part of Marange, in late October 2008.

“Operation Hakudzokwi” meaning “No Return” involved vicious targeting, hunting down of suspects and searching travellers around Mutare, with people found in possession of diamonds or foreign currency being arrested detained, or subjected to humiliation and excruciating experiences.

With the complicity of Zanu PF and government officials, the diamond areas became a zone of lawlessness, killings and impunity, a microcosm of the mayhem and brutality which pervaded Zimbabwe at the height of hyperinflation and the economic meltdown.

Security forces moved in and out of Marange to ensure that they drove out the miners and cleared the path for themselves and later mining companies chosen by the government.

Before the military moved in, the police committed serious human rights abuses – including harassment, beatings, torture and killings — while they also battled for access to the mining fields with the illegal miners.

With the police failing to control the anarchy, the army moved in on October 27 2008 and all hell broke loose after that.

Between November 1 and November 12 that year, it was reported that over 100 people were killed and this became part of the overall death toll of over 200.

The scars of the Chiadzwa crackdown are still fresh on some of the victims.

In an interview this week, John Gwite, a victim of the campaign, narrated how his brother Tsorosai Kusena died after beatings and torture by soldiers.

Another victim was well-known businessman, Maxwell Mandebvu Mabota, who was badly beaten in Nyanyadzi during the clampdown. He died of multiple organ failure in a South African hospital.

Gwite sustained life-threatening injuries which have forced him out of his job as a builder. He says he will never forget the trauma he suffered during the attacks.

“On September 23 2011, we were cleaning our community well. Our village is about a kilometre away from the Mbada concession,” Gwite told the Independent.

“We were four together with Tsorosai who was our elder brother. We were using shovels to clear all the mud in the well because in September the wells quickly dry leaving us without water,” he said.

“Mbada security guards, who knew us so well, then approached us and accused us of trying to mine diamonds in their concession when it was clear we were clearing a well.

“Tsorosai told them that we were cleaning the well as it was getting dry because of the mud, but the security guys dismissed him and forced us into their truck.

Gwite said they were taken to the diamond base and when they arrived there they were frog-marched on the concrete pavements until their knees bled profusely.”

He added: “We were made to crawl and were frog-marched on the concrete pavement for some considerable distance and a long time. In the process we were beaten by soldiers at the base who took turns to assault all over our bodies, including the backbones, as we were lying on our stomachs. They concentrated on beating us on the backbones.

“When they (soldiers) felt tired they would ask us to put our heads on the ground ‘kutakura nyika,’ (to carry the country) until our necks could not withstand the pressure.”

Gwite said the beatings and torture went on until late evening and all the victims eventually succumbed to the brutality and lay prostrate and unconscious on the concrete pavement.

“At around 9:30pm Tsorosai started groaning and then asked for some water to drink, but the soldiers refused to give him. His other younger brother, Pikirai, rose from where he was lying and gave Tsorosai some water, but he was thoroughly beaten for doing so. After a few minutes Tsorosai lay about hiccupping and groaning in pain before he died.”

Gwite said later one of the soldiers confirmed that Tsorosai had died.

According to a Human Rights Watch report, titled Diamonds in the Rough, released at the time, the violence and brutality was chilling.

“More than 800 soldiers drawn from three army units–Mechanised Brigade and No. 1 Commando Regiment based in Harare and the Kwekwe-based Fifth Brigade–carried out the operation under the overall command of Air Marshal Perence Shiri, commander of the AFZ, and General Constantine Chiwenga, commander of the ZDF,” the report said.

“The first three weeks of the operation were particularly brutal– over the period October 27 to November 16, 2008, the army killed at least 214 miners. The army has also been engaged fully and openly in the smuggling of diamonds, thereby perpetuating the very crime it was deployed to prevent.”

The report also said “five military helicopters with mounted automatic rifles flew over Chiadzwa and began driving out local miners. On the ground, over 800 soldiers were ferried to Chiadzwa in seven large trucks, several smaller trucks, and an army bus. From the helicopters, soldiers indiscriminately fired live ammunition and teargas into the diamond fields and into surrounding villages.”

It added: “According to several villagers who witnessed the operation, soldiers fired their AK-47 assault rifles indiscriminately, without any warning. In the panic that ensued, there was a stampede, and some miners were trapped and died in the structurally unsound and shallow tunnels.

According to witnesses, soldiers searched the bodies of dead miners on the field and took all diamonds and any other valuables they found.”

The report also details how Mabota was killed.

“On December 24 2008, Brigadier-General (David) Sigauke lured Mabota to Nyanyadzi,” the report said.

“When Mabota arrived, Sigauke and 17 other soldiers accused him of smuggling diamonds and drove him to the diamond fields where they assaulted him using iron rods, booted feet, clenched fists, thick tree branches, and butts of their rifles demanding information on other buyers of diamonds.

“According to a human rights lawyer who interviewed Mabota before he died, the soldiers assaulted Mabota for several hours and stole all of his money and valuables-US$11 000, two mobile phones, and his car-before handing him over to the police, who in turn, took him to a hospital in Mutare. Mabota named Brigadier-General Sigauke as one of the soldiers who tortured him.”

A medical doctor who examined Mabota in Mutare said: “As a result of severe and repeated blows using blunt objects, (the) patient (Mabota) suffered kidney failure and perforated lungs. After two weeks of no improvement his family transferred him to South Africa where he died upon arrival on January 8 2009.”

Police made no arrests in connection with Mabota’s death.

Gwite said Tsorosai’s brutal death was microcosm of the wave of killings in Chiadzwa which remain a scar on the conscience of the community and the nation.

BLOG

By Samantha Cole

This week at the Indaba 2017 Convention in Cape Town, Brad Gordon, the CEO of Acacia Mining, gave his speech and presentation. We found a copy of the presentation on the Acacia Mining website.

Is Mr. Gordon finally waking up to the reality that Tanzanian’s are not as sleepy as he and Kelvin Dushnisky thought? And all the Barrick Gold Board of Directors? And all the Acacia Mining Board of Directors? They all sit overseas in their posh offices earning hundreds of millions of US Dollars a year and they use all sorts of schemes not to pay their fair and legal taxes in Tanzania?

We are proud of our President, Dr. Magufuli, for standing up in public this past year and fighting the war on behalf of his Nation against corruption and fraud and tax evasion. And make no mistake, President Magufuli has made his point publically and blatantly about Acacia Mining. Is that the reason that Acacia Mining is starting a process to run away from Tanzania and start mining in other African countries?

After all, according to the website of Tanzania’s Ministry of Mines, Acacia Mining have many dozens of mining licenses for new concessions. Can it be that the concessions are all bad and useless and have no value? Are all of the concessions so poor that Acacia must go buying into mining in Kenya, and Mali and Burkino Fasso?

Kelvin Dushnisky, the Chairman of Acacia Mining and the President of Barrick Gold, and all his colleagues, have all learned the hard way that the days of manipulating “the little Black man” are gone. They are all shocked by President Magufuli’s courage and wisdom to protect his Nation by stopping the corruption, fraud and tax evasion.

Can you blame our President if he thinks the old fashion saying;

“I don’t know what’s worse: People who lie, or people who think I am stupid enough to believe their lies.”

Brad Gordon said in an interview in Cape Town that “… we need to look at the distribution of that wealth and how taxes are paid”. What are we missing here? Since when does our Government and the TRA (Revenue Authorities) need Acacia Mining to look at how taxes are paid? And if Mr. Gordon intended that Acacia needs to look internally at how to pay their taxes, that is even worse because for better or worse, Acacia must pay taxes according to TRA demands. Whatever way you choose to understand Mr. Gordon’s statement, it is a disgrace and a slap in our Governments face.

We see here what hypocrites these Barrick Gold and Acacia Mining people really are. Look at these double standards using the Acacia presentation on their website:

(The cherry on the top comes at the end… )

On page 4, Acacia writes about “Our Strategy” and they claim that they work towards zero harm; additional focus on Government dialogue; delivery on community commitments; enhanced public relations profile.

How deceitful can Mr. Gordon be? Is this the same company who has been reported for murder, rape, environment destruction, corruption, tax evasion, fraud and the list goes on? How can Acacia claim all the above when the reality is out in the public domain and the truth is quite the opposite of their claims?

On page 5, Acacia writes about “Our Operating Philosophy” and they claim that they create a sustainable competitive advantage based on core competencies and that they will never outsource Government and community relationships.

It is clear to us Tanzanians that Acacia Mining and Barrick Gold will do whatever it takes to create your competitive edge – at any cost, regardless if legal or if you need some corrupt assistance like the media reported about the corruption investigation ongoing with Acacia and one or more officials in the Ministry of Mines who allegedly acted for Acacia against a local company called Bismark Mining & Hotel.

Now let’s look at what Acacia writes on this page that they “will never outsource Government and community relationships”.

Is this a joke? Or sarcasm? Or an insult to our President?

The two things Acacia desperately needs in Tanzania are relationships with our Government and with our communities (around Acacia operations).

So, Mr. Gordon, you clearly need to replace all your senior staff at your Dar offices since they are obviously making a total mess. And your top “Mr. Fix-it” (as people in your Dar office call him) urgently needs to be replaced as he is causing more trouble in Tanzania than you realize (whilst you and Mr. Kelvin Dushnisky sit overseas in your offices).

Therefore, your statement about “never outsource… .” needs to be reversed and you should immediately appoint a local Tanzanian specialist company to provide “relationship” services to Acacia Mining and Barrick Gold.

Oh, we almost forgot about your announcement this week that you plan to spend about US$ 2 million on a campaign in Tanzania, in print, radio and television, to boost and improve the Acacia Mining name and image and reputation.

Needless to say that in the near future, you will add this US$ 2 million to your total that you “invested in Tanzania” and then you will brag to the world how much money Acacia contributes to the economy here.

But in fact, you are wasting your US$ 2 million. The People don’t need to hear more blah-blah words and see propaganda pictures.

We want to watch you pay your taxes and export royalties legally and morally without any “changes” to the mixture of copper and gold in the mining sand.

We want to see that you stop destroying our environment.

We want to know that you are fighting corruption and not feeding it.

Stop with the problems and fix your relationship with our Government.

What is so difficult about that? You can cancel your US$ 2 million campaign – it is unnecessary. Your actions speaks louder than your words.

Barrick Gold messed up in Tanzania. Acacia Mining inherited the Barrick mess and added to the mess. Start a fresh page and fix all the mess and move onwards with a new start which will surely rally the support of the Government and the People behind you. So what if it costs you money and your profits are less for a year or two but then after that, you will fly in Tanzania!

On page 7, Acacia writes more about “Relationships – Mining & Governments” and that Acacia needs to address misconceptions about the mining industry and Acacia continues with the following that can only be defined as fantasy fanfare:

>> … . a lack of trust between mining companies and Governments

>> … . lack of communication led to an ‘imagination gap’ between the realities faced by mining operations and the perceptions of Government

>> … . need a fresh approach to re-boot these relationships

>> … . need to address misconceptions about the mining industry and the cycle of mistrust needs to be broken and a shared narrative developed

What misconceptions is Acacia Mining referring to?

Is murder not murder?

Is rape not rape?

How terrible must environment damage be before it is called what it really is?

Is there a legal kind of corruption and fraud?

Are Tanzanian’s all so dense and dimwitted that all the crimes and deceit that we are exposed to on Barrick Gold and Acacia Mining’s part, are ALL MISCONCEPTIONS? Is this yet another insult and slap in our President’s face and indeed in the faces of all Tanzanians? In fact, is it not true that Acacia holds the “cycle of trust” in their hands to fix?

The Tanzania Nation will agree you need to re-boot your relationship and you need to do it urgently. Start with our President first. But pay all your taxes before you ask for a meeting.

On page 9, Acacia writes more about “Highlighting our contribution” and they are quick to state that over US$3 billion of capital invested into Tanzania in the last 15 years and they built three mines and expanded a fourth.

Sadly, Acacia are not quick to include how badly their mother company, Barrick Gold manipulated and abused the Tanazania mining system in 2013 by closing down the Tulawaka Mine and transferring it to Stamico (Tanzania’s State Mining Corporation).

In doing so, Barrick Gold weaseled and slithered (in the lowest sense possible) themselves away from the complete responsibility of the full rehabilitation of the mine and the surrounding area of land. It was public knowledge how terribly Barrick Gold exploited the weaknesses and flaws in the system (should we go down the road of corruption here as well?)

The bottom line was that Barrick Gold walked away from the Tulawaka Mine, laughing all the way to the bank. Is this not an insult of the highest degree that this disgusting Tulawaka scandal by Barrick Gold is included in this “highlighting our contribution”? Talk about laughing in our faces!?

On page 10, Acacia writes about “Aligning with Government aims” and they have the audacity to include the words: Free from corruption. Really? Seriously?

Any Google research of tax evasion shows that corruption and tax evasion are coupled together. There are multiple millions of links in Google that highlight this point.

Barrick Gold and Acacia Mining – “Free from corruption”? Astounding that they can even write these words! Twice, within 6 months last year, Barrick – Acacia were found guilty of tax evasion.

On page 11, Acacia writes about “Creating high-tech hubs” and they are proud to state that every year they move over 40 million tonnes of earth and they utilise the best global technology to make this happen. In addition, they claim their mines are as advanced as any mine in the world.

Frankly, who could possibly doubt this? After all, they list above over US$3 billion of capital invested into Tanzania in the last 15 years. Probably close to all that money has been for Barrick Gold (Acacia Mining) and they have to impress their shareholders who demand dividends, so?

Is Acacia Mining to be complimented for achieving this? Should less be expected?

Finally, on page 13, they write “Aiming to create Sustainable Communities” and they continue declaring that their goal is to create communities that enjoys good access to strategic social infrastructure such as health services, water and sanitation and education. Does Acacia Mining have no shame to write about water (amongst other factors) where they know that the North Mara mine is a huge problem for water in the region but they successfully swept this under the carpet. (Is this more “free from corruption”?)

Anyone researching North Mara water will see water problems going back many, many years! But let’s try be objective and look only at the past 12 months.

In January and February 2016, the media reported that due to complaints from communities around North Mara mine, the Government were investigating the water and they wanted proof via testing that the water was safe. Even Deputy Environment Minister Luhaga Mpina personally took a leading part in the investigation. What results from water testing?

Nothing! All swept under the carpet.

One of our group contacted Dep. Minister Mpina directly to ask for the progress of the testing.

Nothing! All swept under the carpet. (Is this more “free from corruption”?)

However, on 3 May 2016, a laboratory testing report was published on behalf of the National Ground Water Association regarding the North Mara water. Very briefly, as a summary, the report stated:

>> Eleven trace elements (Al, As, Cd, Co, Cr, Cu, Fe, Mn, Ni, Pb, and Zn) were determined, and averages of Fe and Al concentrations were higher than levels accepted by the Tanzanian drinking water guideline.

>> Levels of Pb in three samples were higher than the World Health Organization (WHO) and United States Environmental Protection Agency (USEPA) drinking water guidelines of 10 and 15 µg/L, respectively.

>> One sample contained a higher As level than the WHO and USEPA guideline of 10 µg/L.

>> Analysis confirmed a relationship between element concentration and distance of a sampling site from the mine tailings dam. This relationship raises concerns about the increased risks of trace elements to people and ecosystem health.

>> A metal pollution index also suggested a relationship between elemental concentrations in the groundwater and the sampling sites’ proximity from the mine tailings dam.

On 20 June 2016, this writer contacted Dep. Minister Mpina again. This time, the question was regarding the TSh 40 million fines that Dep Minister Mpina was involved in issuing in January 2016 for companies breaching environment management laws and regulations. Dep Minister shrugged off the question and simply answered “Thanx Samantha NEMC will respond accordingly”.

Nothing! All swept under the carpet.

On 18 July 2016, the media reported that residents in communities around the region near the Acacia North Mara Gold Mine still insisted that the water was not safe for human consumption.

After that… Nothing! All swept under the carpet.

We are now one year past Dep Minister Mpina’s on site investigation where he took water samples. And no solution to this ever surfaced. And the risk and danger still remains for the women, men, elderly, children and their animals and cattle in communities around the region near the Acacia North Mara Gold Mine – and we did not even raise the danger factors for the fish and water fauna and flora in the rivers and streams in that region.

As much as our President Magufuli is busy and under pressure with managing our country’s affairs, we hope the President will agree that this is a matter of possible fraud and corruption for the PCCB to investigate.

More important, our People around North Mara mine need genuine clean water.

So it is not hard to understand the extent of deceit and double standards on the part of Barrick Gold and Acacia Mining when they declare publically “aiming to create Sustainable Communities that enjoys good access to water and sanitation!

If all of the above is not enough to raise the hairs at the back of your necks, then the following may well make you fall off your chairs!

The following must be the height of disingenuousness, hypocrisy and deception in what they write in this same presentation to the Indaba earlier this week:

On page 2 of the presentation, the following extracts appears regarding the contents of the presentation (that we analyzed above) and which was presented publically by Brad Gordon in Cape Town:

>> Neither Acacia Mining nor any of its directors, officers, partners, employees, affiliates, agents, consultants, advisors or representatives has verified, or will verify, any part of this presentation… …

>> Acacia Mining nor any of its Associates makes any warranty, express or implied, as to the fairness, adequacy, accuracy or completeness of the information in this presentation… …

>> The information or opinions contained in this presentation or any written or oral information made available to any person does not purport to be comprehensive and has not been independently verified.

And they go on… . Telling us that whatever their presentation states is not verified by anyone and it might not be true. What can we comment about the double standards of such people? Are there words for people who publically make statements and then in the same breath say that these statements may not be true?

Does it get any worse than this? Maybe the worse to still to come?

Acacia Mining and Endeavour Mining both confirmed they are in merger talks. We already wrote a blog about “Ni bora shetani unaemjua kuliko shetani usiemjua – Better the devil you know, than the devil you don’t know!”

We wonder if the US$2 million campaign that Acacia Mining are planning to boost their image and reputation, will they include the fact that the USA Government has recently instructed the FBI to investigate the UraMin scandal involving alleged fraud of well over US$ 1 billion – and surprise surprise – the CEO of Endeavour Mining today, Mr. Sébastien de Montessus, was the past CEO and President of this same UraMin mining company! Is this the quality of “leader” that Acacia Mining chooses to bring to our gold-rich country?

We asked this question in our blog last week and it still bothers us: Can it be that the God-given gold in our country is a magnet for these “types” of people?

Mr. President, our thanks for your hard work and God bless you and God bless Tanzania and God bless our Nation.

PRESS RELEASE

The Government has declared the current drought affecting 23 arid and semi-arid counties and pockets of other areas a national disaster.

Speaking after being briefed on the situation on the ground by Cabinet Secretaries involved in drought management and food security at state House Nairobi, President Uhuru Kenyatta called on all stakeholders to support the Government by upscaling drought mitigation programmes.

The President also called on the local and international partners to come in and support the Government’s efforts to contain the situation which has not only affected human being and livestock but also the wild animals.

“Support from our partners would complement Governments efforts in mitigating the effects of drought,” said the President.

He said the government would fast track and upscale its mitigation programmes to ensure the situation is properly contained.

The President at the same time gave a stern warning to all who are involved in food distribution that the Government would take serious measures on those who would try take advantage of the situation to enrich themselves.

“I will not tolerate anybody who would try to take advantage of this situation to defraud public funds,” said President Kenyatta.

The President therefore, said all purchases of food and other requirements be done in a transparent and open manner and that all government agencies be involved to ensure Kenyans are not defrauded.

“Let all investigative agencies including the Ethics and Anti-Corruption Commission get involved in the activities being undertaken during this period. I don’t want the Government to be accused of taking advantage of this situation,” said the President.

To stabilise the high prices of cereals, the Government would allow maize importation by the licenced millers but would strictly monitor the situation to ensure it is done in a very transparent manner.

In its phase two of drought intervention covering the months of February to April, the Government has allocated 11 billion shillings to carter for intervention in various sectors.

Already National Treasury has release the first tranche of Ksh 7.3 billion while the county governments have provided Ksh 2 billion.

The Government intends to enhance the interventions including doubling of food rations and cash transfers among other measures.

Present were Chief of Staff and Head of Public Service Joseph Kinyua, Cabinet Secretaries Henry Rotich (Treasury), Willy Bett (Agriculture and Livestock), Mwangi Kiunjuri (Devolution), Phyllis Kandie (Ministry of East African Community (EAC), Labour and Social Protection), Eugene Wamalwa (Water and Irrigation) and Principal Secretaries Richard Lesiyampe, Susan Mochache, Fred Sigor and Conservation Secretary Gideon Gathaara among others.

ANALYSISBy Robert Kirunda

Both the Central Bank and dfcu Bank Limited confirmed that dfcu has now taken over some of the assets that belonged to Crane Bank Limited.

This brings to an end only part of the suspense that resulted from the Central Bank’s takeover of Crane Bank.

But much debris remains. With it come several unanswered questions. It is my intention to suggest a way to address these questions.

The first principal question is: What went wrong with Crane Bank? To answer this question satisfactorily, we must address many other lingering questions.

Much has been said about its original capital base being eroded. But what was this base in the first place? How was it comprised? How did it get eroded? At what point did this happen? Why were the proprietors unable to recapitalize the bank? We do not always expect banks to keep their deposits on hand.

But was this a case where deposits became capital; deposits became profits; deposits were used to cover losses and patch holes; deposits were used to amass value outside the bank’s balance sheet?

We all have on our minds the various branches that were rising at defiant speed across the country – some of which are now inevitably shut down. I will say nothing of the ever-growing real estate empire of one of the bank’s proprietors. Did dfcu take over these assets as well?

Bad loans

As for their lending habits, it has been suggested that Crane Bank was a good bank because it was viewed by downtown businesspeople as having more pragmatic lending practices. But is this all there was to the nexus between capital erosion and the fall of the once 4th largest bank by deposits? Were loans really the bank’s main purpose?

Was this the unluckiest bank whose customers all failed to honour obligations at the same time or is there more than is told of these lending practices and the larger business of this bank?

What about all those highly priced fixed deposits?

Where has all this money gone? Only Bank of Uganda (BoU) can confirm the ultimate figure. What we all know for sure is that a lot of taxpayer’s money has been injected to keep the doors open. And a significant portion of these funds has been withdrawn.

I hope that the other players in the industry can confirm that the large withdrawals that have been made over the last four months have translated into higher deposits elsewhere. I doubt that this is the case.

And it is this point that brings me to the centrality of why we need to pay closer attention to how this episode ends.

We have said nothing yet of the fate of Crane Bank employees.

If we are to avoid this sort of situation, we must address a crucial factor: How did this happen on the watch of the regulator? When they moved in, BoU designated Crane Bank as a systemically important bank.

In colloquial terms, what they were saying is the bank was too big to fail.

This is why a lot of money and time was invested in ensuring that the doors do not have to slum shut. But the second of the larger questions is: How did things get so bad as to require the sort of cash injection we are now talking about?

It is because of this question that I have suggested elsewhere that BoU has two options: Heads will roll on the inside of BoU; or the Central Bank will take stern, decisive and public action. I prefer the second option. I would like to suggest how this could be achieved.

Prosecuting proprietors

In the past, BoU preferred prosecution against a former proprietor, and has also set up a liquidation office to collect on assets of closed banks.

The former process scored some mileage and the late Sulaiman Kiggundu was sent to jail for a short span of time.

The latter process resulted in BoU collecting on assets for almost 12 years, before the same were factored to a private sector player.

This time, unlike the previous ones, there are a lot of public resources that need to be recovered. This needs to be done in a way that sends the message this will not happen again, if the industry is to outgrow these sorts of failures.

BoU should take a two-pronged approach.

A special prosecutor should be appointed to pursue criminal prosecution on offences under both the ordinary premises of criminal law (such as theft, causing financial loss, fraud) and under the Anti-Money laundering Act.

The special prosecutor will need experts in banking and broader aspects of commercial law, criminal prosecution and anti-money laundering.

In other words, this is a team of well-grounded individuals and not just one prosecutor as is in most cases.

This prosecution will happen before a judge of the High Court, as is the case in many other trials. I believe this is both necessary and provided for in the existing legal framework. Even better, we have precedent: It will be recalled that in 2005, a law firm was retained by the then DPP to beef up the prosecution team when Dr Kiiza Besigye was charged with rape. The same has been done in the General Court Martial.

In addition, it will be recalled that the media notices mentioned that dfcu had taken over only part of the assets and liabilities of Crane Bank. Anyone familiar with bank failures knows and expects a spate of litigation around the remaining assets and liabilities.

This is usually of a civil and commercial nature. I would counsel that all these matters be referred to a single judge and commenced at the same time.

BoU inevitably has an interest in this process because it retains the assets that were not taken over by dfcu. Referring these matters to a single judge achieves two purposes: it focuses the judge’s attention on what is inevitably complex litigation and helps ensure that all matters are not overshadowed by the enduring problem of court backlog.

Both judges would need to operate on a special dispensation from the Principal Judge and to work within a limited time frame.

It is not unlikely that many questions of law will arise. This kind of litigation, treated in isolation can take tens of years. A cap on time helps avoid this challenge. This approach is necessary because of the greater public interest involved.

Sector check

One must view this not just as a Crane Bank failure but also as an opportunity to truly investigate the very ethos of our banking system. I am persuaded that there will be more benefits to this approach than the limits of a press column can allow.

All bankers should know that there is a limit to how far public resources will be utilised to rescue them.

Where such resources are utilised, the regulator should spare no efforts in recovering them.

The tensions of who will take over Crane Bank may have subsided now but it is about time to shed the light of transparency on the opaqueness of the revolving doors of banking secrecy in this country. The taxpayers may pay the price to keep systemic banks open but at the very least, they deserve to know who was responsible and how it all happened.

Mr Robert Kirunda is a practising lawyer.