Year: 2017

Zimbabwe: Blood Diamonds – How Army Killed My Brother

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.

Tanzania: Acacia Mining CEO Finally Admits in Public – “… .. Critics May Have a Valid Point”

BLOG

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.

Kenya: Government Declares Drought a National Disaster

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.

Uganda: Crane Bank – Answering the Lingering Questions

ANALYSIS

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.

Cameroon – Internet Ban Dims Afcon Celebration

As Cameroon’s President Paul Biya hosted a luncheon for the national football team after their AFCON victory over Egypt, Anglophone Cameroonians are calling on the president to lift a ban on internet connection.

Sunday’s AFCON triumph of the Cameroonian national team over Egypt offered a glimpse of a united country, celebrating a historic victory. But on social media, the wave of protest is growing louder.

Cameroon’s national football team popularly known as ‘The Indomitable Lions’, is being honored with a luncheon by President Biya at the presidential palace in Yaounde, after they beat Egypt 2-1 to clinch the Africa Cup of Nations for the fifth time.

However, nothing has changed in the internet restrictions that have led to strong criticism of Biya by frustrated Cameroonians.

The internet in English-speaking regions of Cameroon has been paralyzed for nearly a month on the orders of the president. His cites security concerns as a reason behind the shutdown.

Critics of the internet ban

Edward Snowden, an American whistleblower and former CIA employee who is in exile in Russia, regularly criticizes the curtailment of human rights and imminent reprisals by the government.

Rebecca Enonchong, a frequent Twitter user from Cameroon, who works in the IT industry and has also been a member of the Global Advisory Committee for Women at the United Nations and the UN ICT Task Force, also spoken out against the internet ban.

The campaign#BringBackOurInternethas been steadily growing and trending for the last several weeks. The campaign is increasingly becoming a forum for young people to oppose repression by President Paul Biya “The Internet is a fast way to communicate via WhatsApp, Twitter or Facebook, which is practically a human right because it facilitates access to information on many relevant topics that people want to learn about,” said Wanjiku Mwaura, DW’s expert on social media.

“This is seen as a violation of human rights in the regions of Cameroon where the English-speaking population is affected by the ban, and they have no way of resolving their differences with the government,” she added.

The fact that English is arguably the world’s most spoken language is also contributing to the rise of social media protests. “Of course it [English] helps the Anglophone population in Cameroon to address a larger audience – millions of people use Twitter in English – which improves communication and increases the reach of their concerns,” Mwaura said.

For weeks, the West African nation has not had data connections. But only in the north-west and south-west of Cameroon, which use English as their official language. The crisis has intensified as a result of increasing strikes.

Bamenda turned to ghost town

More and more teachers have joined striking attorneys to express their anger at what they say is the neglect and marginalization of their populations in the bilingual country. They have stayed away from work turning cities like Bamenda to ghost towns.

Apparently, Cameroon’s government felt that the social networks had become a threat after activists called for general strikes. Mwaura is convinced that the protesters do not want violence but civil disobedience. “They are organizing protests in silence, through ghost towns. They want to draw their attention to their grievances and to talk to the government about their problems.”

Cameroon has two official languages: French and English. But in everyday life French is usually spoken. English-speaking teachers complain that French has too much influence in the schools in their region. The Anglophone people also feel culturally discriminated against.

At the end of last year, there were calls for a split. Those calls have only grown louder with the internet ban and Cameroon’s dual system is facing one of its greatest challenges since independence in 1962.

Ten people were killed in protests in Bamenda in December 2016. 5,000 government soldiers were promptly deployed to clamp down on the protest. Hundreds have since been arrested.

GE Announces Partnership With Transnet To Digitise African Transport

GE Transport and Transnet, South African-based freight logistics chain have entered a digital  partnership to seamlessly connect shippers and transport operators in streamlining pricing and capacity on the network, shipment planning, fuel costs savings and delivering goods to the market more effectively.

GE Global Chairman and CEO, Jeff  Immelt said: “The digital partnership we’re embarking on with Transnet will not only improve Africa’s transport sector, but unlock enormous opportunities for the supply chain fuelling Africa’s economy.”

Siyabonga Gama, Transnet’s Group Chief Executive said:  “Disruptive innovation has become the new buzzword for good reason. Innovation creates new markets and fundamentally changes the way we live and work. The partnership with GE Transport is helping us to create a new industry and develop new skills that have the potential to transform the world as we know it.”

As a global digital industrial leader and supplier of  equipment, services and solutions to the rail, mining, marine, power and drilling industries, GE Transport will assist Transnet to deliver goods and services with greater speed and efficiency through the provision of essential data required through Predix – GE’s cloud-based operating system for the Industrial Internet of Things.

The timing of this initiative falls in line with the robust growth taking place across Africa. Since 1995, Africa’s trade has nearly doubled, placing immense logistical pressure on existing transport infrastructure. As it stands, managing the various transport routes and developing new infrastructure is laborious. GE’s innovative solution will bring simplicity to payment processes, goods management, customs inspections and reduce the burden of a paper-based environment.

GE is encouraging development across the sectors of aviation, healthcare, transport and power as sectors that are increasingly  being inhabited by software companies, technology companies and industrial  companies. “This partnership is GE’s opportunity to take the new technology that we will develop in South Africa and introduce it to the rest of Africa,” said Immelt.

Digitalisation in Africa is essential to driving growth on the continent. It plays a significant role in stimulating inter-Africa trade. This isn’t the first time GE and Transnet have worked together. The two entities have partnered since 2009 to manufacture and deliver more than 230 Evolution Series diesel electric locomotives, including the “most African” locomotive, which featured 55% locally produced content.

“We have a rich history of partnership with Transnet, and are excited to continue working with them to unlock game-changing potential for the local supply chain that is at the heart of Africa’s global economy,” said Immelt.

South Africa: Weeks of No Electricity for Buffalo City Town

Municipality blames illegal connections for blowing transformer

Residents of Mzamomhle, Gonubie, about 20km from East London, have been without electricity for two weeks and may have to wait another two months before being reconnected.

This is after a transformer exploded. Residents say they lost televisions, fridges and other appliances at the time of the explosion. Mandisa Gobongo , a resident, said the community had reported the problem to the Buffalo City Municipality. “When there is no electricity, everything stands still, because some of us do not even have money to buy gas or paraffin,” said Mandisa. “Our municipality is quiet; we don’t know how long it will take for us to have electricity again,” she said.

A shop owner said business had slowed. “People want cold drinks and fresh meat and unfortunately I cannot provide them with that since there is no electricity and that is destroying my business,” he said.

Nolizo Ziqubu, a single mother of three children, said, “I am not working and I don’t have money to buy paraffin and I don’t even have a primus stove – so it’s really bad.”

Another resident, who owns a fish and chip shop, said, “We don’t just sell for the sake of selling. We are doing it so that we can feed our families, but without electricity, we cannot put anything on the table for our families. We are suffering.”

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Sibusiso Cindi, spokesperson for the Buffalo City Municipality said that that on 22 January a transformer blew due to illegal connections. “This transformer has not been replaced as the distribution [department] is waiting for new transformers,” said Cindi.

Cindi said extensive illegal connections throughout the municipality meant a large number of transformers were needed, and it takes six to 12 weeks to deliver the transformers, even though the municipality ordered on a regular basis. The delays were due to the high turnover caused by illegal connections, he said.

“We are pleading with the community, if they could assist us by reporting people conducting illegal connections as this ultimately causes the disruptions,” said Cindi.

South Africa: Facts or Alternative Facts? Zuma’s 10th State of the Nation Address Checked

Africa Check sorted fact from fiction in the tenth State of the Nation address South Africa’s President Jacob Zuma delivered.

Amidst unprecedented security measures, South Africa’s President Jacob Zuma delivered what would likely be his last State of the Nation Address on 9 February 2017. We fact-checked his speech.

Energy

Claim

“To date, nearly 7 million households have been connected to the grid and now have the electricity.”

Verdict

correct

South Africa’s development indicators showed that 6,340,321 households had been connected to the grid as of 2013/14. A further 233,455 were connected in 2014/15 and 231,012 were connected in 2015/16. Figures for 2016/17 have yet to be released.

Zuma’s claim is correct based on these figures. They show that a total of 6,804,788 households – nearly 7 million – were connected as of 31 March 2016.

As of 2016, 90,3% of South African households had access to electricity for lighting.

Education

Claim

Among the participating countries [in the Trends in International Mathematics and Science Study] South Africa has shown the largest improvement of 87 points in mathematics and 90 points in science.

Verdict

correct

The Trends in International Mathematics and Science Study (TIMSS) is conducted every 4 years and provides participating countries with the means to compare pupil performance in maths and science.

Grade 4 and Grade 8 pupils are tested in most of the countries that take part in the study. However, in South Africa Grade 5 and 9 pupils are tested.

The 2015 study found that South Africa’s Grade 9 pupils recorded the “biggest positive change”. There was an improvement of 90 points in science and 87 points in mathematics.

The report goes on to note that “South Africa started with very low-performance scores in 2003 and this upward shift translates to an overall performance improvement by approximately two grade levels between 2003 and 2015”.

While South African Grade 9 pupils did record a large improvement, in comparison to other countries they fared badly. Out of the 39 countries assessed, South Africa’s Grade 9 students placed 38th for mathematics performance and 39th for science performance.

Tanzania Oil and Gas Companies Reject Local Content Regulations

Differences between Tanzania and oil companies over local content obligations contained in Petroleum Act 2015 have resurfaced with the government collecting stakeholders’ views in efforts to enforce regulations.

The companies through their organisation, Oil and Gas Association of Tanzania (Ogat) last week told the Energy and Water Utilities Regulatory Authority (Ewura) that they are uncomfortable with the local content requirement in Tanzania and want a review.

The meeting was convened by Ewura after Energy Minister Prof Sospeter Muhongo on January 6, directed the regulator to hold a stakeholders’ consultation meetings on the draft petroleum regulations 2017.

The companies rejected the draft regulations, saying were costly.

“Our aim is to help the government come up with a realistic regulation on local content. All the concerns are taken into account in the process, backed by an extensive study on best practices,” Halfani Halfani, a senior official with Ophir Energy, a UK-based oil and gas exploration company, said.

The draft regulation lay down procedures to be followed by foreign companies to guarantee compliance with local content requirement.

According the proposed regulations, before engaging in any petroleum-related activity, a contractor must submit a local content plan for approval.

The plan must have details of employment, training, succession plans, research and development, procurement of goods and services and technology transfer.

The regulations also call for submission of quarterly implementation reports.

“If the regulations are implemented, companies will be spending most of their time focusing on meeting requirements for local content compliance at the expense of their primary undertakings,” said Mr Halfani.

“It is actually like the government managing the day-to-day activities of oil companies.”

He noted that the draft local content regulations unfairly target foreign oil companies.

“There is no mechanism in the proposed regulation to hold government officials accountable for failure to meet local content obligations on their part,” he said.

Africa: Trump’s Deportation Policy Will Be a Blessing to Africa – Kirubi

A reverse brain drain to Africa might be the unintended outcome of Trump’s stringent immigration policies, industrialist Dr. Chri Kirubi said.

In a panel discussion hosted by The Economist Events in Nairobi, Kirubi said African countries should take advantage of the opportunity presented by the policies to attract and retain skilled talent.

“Trump is doing us a favor by driving back the educated where they belong, in Africa, Asia, Middle East. These are assets we have been allowing to disappear in Africa,” Kirubi said at the Economist’s Innovative Economies event.

The panellists, including Labour Cabinet Secretary Phyllis Kandie and her Tunisian counterpart Saidi Ounisi, opened the event by discussing how innovation can increase productivity and efficiency in Africa.

Kandie said the region needs to adapt an innovative culture as we make production more efficient.

“We (Government) have engaged the private sector in creating policies but there is opportunity to collaborate more. We also have to look at what the labor market needs and align the training of our young people to the needs of industry,” said Kandie.

But Kirubi said the issue was not in the policy formulation but in the implementation of these policies.

“Kenya’s Vision 2030 was created in a perfect partnership between the government and the private sector. What I don’t remember is how we are interpreting the vision to achieve our goals as a country.”