The High Court has ruled that jailed former Air Zimbabwe Holdings chief executive Peter Chikumba’s application for bail pending appeal should be heard, saying it has a bearing on the proceedings leading to his conviction and imprisonment. Justice Joseph Martin Mafusire made the ruling after the prosecution raised a preliminary point objecting to Chikumba’s fresh bid

THE Minister of Higher and Tertiary Education, Science and Technology Development Professor Jonathan Moyo has said the ministry will not allow students to enrol in tertiary institutions without passing Mathematics at Ordinary Level. Prof Moyo was addressing delegates to the 2015 research and intellectualoutputs, science, engineering and technology (RIE-SET) expo at the National University of Science

A Zimbabwean female care worker stole thousands of pounds from the bank accounts of vulnerable patients and has been jailed for a year afterwhich she faces deportation from the UK. Ethel Makoni (43) who was entrusted, as a staff team leader, to withdraw cash on the victims’ behalf, took advantage and over less than year

Thousands of state owned and private higher and tertiary institutions yesterday converged at National University of Science and Technology for the annual Research and Intellectual Expo, a government initiative which showcases scientific and technological researches by students. By Tongai Mwenje One of the largest Internet Service Provider in the country, Powertel provided the last mile […]

Dear Editor. ⁠⁠Come and witness people (passengers) at Kura Kurerwa bus garage taken from Mbare musika heading for Mt Darwin (May Mount Mission) but found themselves dumped at their garage right now. This has been going on for some time. Kurura Kurerwa has a tendency of loading passengers into a broken down bus and taking them to their garage instead of

Huawei Consumer Business Group (BG) this week officially introduced the new Huawei watch at IFA. The watch, with its classic design, inspired by Swiss timepieces, will go on sale in Canada, Germany, France, Spain and Italy this month priced between €399.00 and €699.00 depending on the design features chosen. The Huawei watch will also be […]

GWANDA Regional Magistrate Joseph Mabeza has recused himself from a theft case involving over $70,000 after a Bulawayo-based Nigerian businessman and pastor Oma Alponsus Achinulo expressed fears that he would not get a fair trial as the magistrate had allegedly dined with state witnesses. Achinulo, 48, of Suburbs, who is a businessman and Liberation Centre

The Zimbabwe Achievers Awards committee announced an exciting list of nominees for the upcoming prestigious ZAA gala dinner to be held on November 7 at The Hyatt in Rosebank. The nominees’ announcement event was held at The Zimbabwe Embassy in Pretoria on Friday night and invited guests included Metro FM award winning artist Berita Khumalo who was

More than 6 months after secret ghost workers were exposed, Government is still strangled under a multimillion dollar fake wage bill. Government will save at least US$388 million yearly if recommendations of the 2015 Civil Service Audit Report on rationalising its artificially inflated wage bill are implemented. Cabinet could adopt the three-volume report as early

Death sentence activist and Minister of Economic Planning and Investment Promotion Simon Khaya Moyo is leaving today for China. Moyo is calling for Zimbabwe to adopt China’s no nonsense policy of shooting dead every corrupt person in the nation. He is to attend a ministerial meeting on sustainable development for developing countries. He said the one-week meeting

Paidamoyo Chipunza Senior Health Reporter
Premier Service Medical Aid Society is auditing the period suspended managing director Mr Henry Mandishona took office, board chairman Mr Jeremiah Bvirindi has said.

In an interview with The Herald yesterday, Mr Bvirindi said his board became suspicious of Mr Mandishona’s conduct when he withheld certain information required by the board for total transformation.

Though Mr Bvirindi could not shed light on the type of information withheld fearing to jeopardise investigations, inside sources believe it could be about his monthly takings alleged to be way above the ceiling set by the interim management, which was led by Government representative Dr Gibson Mhlanga.

Allegations are that Mr Mandishona could have been earning up to $40 000, almost four times the new salary structure of $11 000 set by the interim management.

Sources said it was obvious to the PSMAS new board that astronomical salaries which led to the ouster of group chief executive Dr Cuthbert Dube who was earning more than $500 000 per month in salary and allowances continued to haunt the medical aid society.

Dr Dube’s management also earned high salaries and allowances which ran into millions. “The major challenge that we have faced as a board was lack of information from the management critical for the successful transformation of PSMAS,” said Mr Bvirindi.

He said his board will remain focused in transforming the society, with a vision to restore its viability and ensure that it regains its status of being the leading health care funder in Zimbabwe.

Mr Bvirindi said this would be done through the board taking control in the running of the society, cost reduction, debt collection and stretch creditors through payment plans.

He said the board will also carry out leadership competency assessment to ensure that management is not part of the problem, but the solution. “There is also need to review the structure, the staff and their mind-sets as some might be living in the past as well as leveraging on technology that enable us detect fraud in view of our huge claims,” said Mr Bvirindi.

He said efforts to redefine the relationship between PSMAS and its investment arm PSMI were at an advanced stage, with work on modalities of operationalising the holding company under way. The holding company is expected to oversee operations of PSMAS, PSMI and investments from outside the country.

“The holding company has since been registered and what is left are modalities to operationalise it without creating top-heavy empires for kingmakers, that is costly for the cash strapped society,” said Mr Bvirindi.

Asked how the board would deal with the $3 million labour suit by Dr Dube, Mr Bvirindi said his board would only find a way forward when the issue is resolved by the courts.

Although Mr Mandishona could not be reached for comment yesterday, his loyalists at the medical aid society claim that he was being victimised for closing doors to corruption, from which some senior management were benefiting.

“The same people who refused to have a forensic audit of PSMI are the same people pushing for his ouster,” said a source who spoke on condition of anonymity. “They are trying to frustrate his efforts in curbing corruption by framing him.”

Unconfirmed reports also indicate that the decision to sent Mr Mandishona on forced leave was done unilaterally without any resolution being passed. “Furthermore, the matter was not even on the agenda of the board meeting,” said the source.

PSMAS is on its path to recovery after a period of decadence, which involved massive abuse of funds and lack of corporate governance. This period saw the society failing to pay service providers on time, resulting in patients on PSMAS failing to access treatment from service providers of their choice.

Monica Cheru-Mpambawashe Review Editor
In spite of the economic challenges and prices coming down in other sectors of the economy, the field of property is not at all a perfect buyer’s paradise, players in the real estate industry have said.

“Business is low. In fact things have never been so bad. But prices remain high because most property owners are rigid in their expectations. When demand is low prices should come down, but that is not happening,” said Property Heights Real Estate Mr Edson Mutodzwa.

“Look at the CABS project in Budiriro which is struggling to get takers. The prices are high for the current economy.” Houses in high density areas like Chitungwiza and Glen View sell for $20 000 upwards with properties in middle range areas like Mainway Meadows going for between $55 000 and $80 000.

Benq Properties principal registered agent Mr Herbert Masendeke said 2015 is a low point when compared to the past few years. “Things are real slow. We had a property boom in 2011 /12 which I think was fuelled by the currency change-over and the availability of cash on the market. There was a bit of money and properties moved,” he said.

The players in the industry appear to be caught between a rock and a hard place as buyers can only afford low prices and sellers demand high ones. A property manager who declined to be identified said the reason why most property owners are not willing to accept depressed prices for their properties is because they believe that the current situation is temporary and things are on the brink of turning around.

“People are afraid of selling their property for a song today then finding that something happens overnight and there is money circulating and suddenly prices will sky-rocket. Anyone who can would rather hold on. I think that is what is keeping the prices of properties high and beyond the reach of many people.

“On the other hand you have buyers who just do not have the money and want something that suits their pocket. So you have a lot of negotiations and deals that are not closed because the parties just cannot find common ground,” she explained.

But in cases where the seller has no option but to put the property on the market the buyer with the money can practically call the shots. “There is just no money so if someone needs to sell then they will just have to take the best offer on the table and these days that may just be one offer,” the property manager said.

Mr Herbert Magaya concurred saying scarcity of cash on the market has forced some parties into barter trade. “You now have deals in which people trade real estate for cars with maybe a cash component or none. There is just no money,” he said.

The players also said the real estate business had been hit by other factors. Said Mr Mutodzwa: “The banks have taken business away from the estate agents. They are not giving mortgages freely but only for their own development projects. This means that there is no money for buyers who would want to make a free choice.”

Research on the market showed that there is one commercial bank offering mortgages where a client identifies a property of their own choice. To qualify one should have a minimum gross monthly salary of $1 500 which puts the opportunity beyond the reach of most workers including the majority of civil servants who make up a sizeable chunk of the formally employed people in the country. The director of another estate agency said the advent of co-operatives has also changed the landscape for the industry.

“Now everyone opts to join a co-operative and build their own home rather than buy one. It is good because people need accommodation of their own. The only problem is that many have fallen prey to land barons and they are losing everything.

“I think that the Government should consider having registered estate agents involved in land development programmes even if they are for co-operatives.

“I know that some unscrupulous agents have also fleeced the public but there is more regulation in our sector and clients get compensated unlike the victims of the land barons who are left counting the costs when their homes are demolished or the promised stands never materialise at all,” he said.

Currently the City of Harare authorities are struggling to deal with the mess created by land barons which has seen some people building houses in unsuitable lots. Recently the city embarked on demolitions with about 40 houses being destroyed before they were stopped by the responsible minister.

Nine people have been arrested so far with more expected to be brought to answer charges of illegal sale of state land. The estate agency director also said the fact that there are too many people who do not own houses in Zimbabwe makes it impossible for a buyers’ paradise to occur because demand will remain high especially in the low market segment and once prices get into the affordable range demand will shoot up again.

“If say, you were to have three-bedroomed houses going for $15 000 today with a reasonable credit line, the demand would be instantly huge and prices would once again go up to the same levels they are at.” Harare has a housing backlog of 500 000. The agents said the same situation is being experienced in the rentals market.

“You can place an advert in the paper and not get even one response. I am not talking about people who show interest then decide not to close the deal.

“I mean that you will not even receive one call from someone making enquiries about the property. Just look at the number of houses being advertised especially in your Thursday paper,” said Mr Edson Mutodzwa.

“Right now up to 60 percent of rental space is vacant. It is the same rigidity on the part of the owners just as in the selling field. They do not seem to want to realise that prices are coming down in all sectors and the property sector cannot be different. So the buildings are vacant.”

Mr Herbert Masendeke said the rentals have been affected by the number of residential developments. “It is difficult to get a tenant these days. I will give you an example of a property I own in Greencroft which went for about $1 200 a month in 2012.

“These days I am struggling to let it out at $900 a month. I think now people are working hard to secure land then immediately put up a structure then go to live there while they develop it so very few tenants are looking for places to rent.”

Recently Government announced 30 000 houses built in the recent past against a target of 213 000 by 2018.

Minister Kasukuwere

The audit of Harare City Council’s businesses ordered by Local Government, Public Works and National Housing Minister Saviour Kasukuwere needs to go beyond simply finding out if anyone is stealing money: the audit needs to look at the actual basis of some of the businesses.

The one that does produce revenue, City Parking, is the simplest. It involves collecting money from motorists parking in the city centre and using this money to maintain parking garages and find more parking. There is a cost, the salaries of the people who collect the money and the cost of their simple equipment, but the business model is simple.

That such a system is needed is acknowledged by all. Indeed it used to be an efficient department within the municipality itself and only became an independent business when that department effectively collapsed during the inflationary period and was resuscitated as a business with the help of an outside investor and is now under municipal control again.

But other council businesses may not now make sense. Rufaro Marketing is one obvious candidate. It is a successor of a colonial policy to keep indigenous Zimbabweans away from strong liquor and then make money from apartheid-style laws. In 2015, it is a total anachronism trying to rent out property it inherited from municipal departments when set up as a business and doing little than collecting enough rent to pay salaries of the people who rent out the property.

It is never going to return to what it was, so a full audit might find no reason for its continued existence. The property can revert to the city council and be reassigned to social needs, if these need them, or be rented out by the officers who rent out other municipal property.

And that raises the question of how much of the other council property should be handled; some could be sold, some leased for long leases to developers and some could be given away for social purposes. An audit needs to offer options.

Other businesses were never there to make money. The city nursery was set up to provide the saplings for lining streets and avenues, and to sell excess plants to residents. All a full audit needs to consider is whether it would be cheaper for the council to buy plants from private nurseries or whether it is cheaper to run its own and offset some costs with commercial sales.

The council itself is starting to tackle some issues. It has decided to terminate all joint venture agreements whose implementation has not taken off or have implementation challenges, such as the upgrading of Rufaro Stadium, refurbishment of Harare Quarry, capitalisation of the city’s farms and the development of Mupedzanhamo Phase Two.

One problem, noted by the mayor and his predecessor, is that the council is not full of professionals and senior business managers, the sort of people who can make sensible commercial decisions. Officials do have professional qualifications, but few have any business experience or a natural aptitude for business. So there is the question of why the council is in businesses.

The council has assets that, in theory, can be used to generate revenue. But many of these assets are doing nothing, providing no service and no revenue. And there is the tendency to assume that because something was once created it must stay forever. A thorough audit could dig into these problems and create options for each type of asset.

In the end the assets, although in the council’s name, belong to the people of the capital city. Their only reason to exist is to benefit the people. Some will never make money, parks and swimming pools for example, but are needed. Others should at least break even, but continue to provide a service, such as halls or stadiums. Others need to make money, or need to be sold or leased out on proper creative leases and the money invested to provide revenue.

So we hope that the audit can be in two parts, first testing the general honesty and then going further and asking questions about what should be done.

Peter Chikumba

Fidelis Munyoro Chief Court Reporter
The High Court has ruled that jailed former Air Zimbabwe Holdings chief executive Peter Chikumba’s application for bail pending appeal should be heard because it is likely he was wrongly charged in the Magistrate’s Court where he was convicted and jailed.

The charge he was convicted on can only apply to public officers and his appeal is based on the fact that Airzim staff are not public officers. Justice Joseph Martin Mafusire last Friday made the ruling after the prosecution raised a preliminary point objecting to Chikumba’s fresh bid for bail.

He said Chikumba’s argument that he was wrongly convicted cannot be discounted and was fundamental to the legitimacy of the proceedings in the lower court. The judge was of the view that chances were strong that the proceedings under which Chikumba was convicted were a nullity at law.

“The point being brought by the applicant (Chikumba) is so fundamental,” said Justice Mafusire.

“It goes to the root of the charge and conviction at the magistrate’s court. If it turns out that the applicant was wrongly charged and convicted, he must be entitled to his liberty immediately.”

Justice Mafusire agreed with the defence led by Advocate Thabani Mpofu that the application arose after it was discovered that Chikumba was wrongly convicted in the Magistrate’s Court after being designated as a public officer when in fact he was not.

“None of the parties during trial and even on bail hearing before Justice Tagu and before Justice Mawadze in the initial bail application was alive to it.” To this end, the judge ruled that Chikumba’s application for bail pending appeal on changed circumstances was properly before the court and he wanted to deal with the merits.

After the ruling, prosecutor Mr Innocent Muchini immediately sought a postponement saying he needed time to prepare a comprehensive response. The application was granted after Adv Mpofu instructed by Mr Admire Rubaya indicated that he was not opposing the postponement. The application will be heard tomorrow.

Earlier on, the judge took prosecutor Mr Muchini to task over his objection and asked him to show the court the proviso in the statutes, which defined Chikumba as a public officer.

Mr Muchini had a torrid time and was at pains to defend the conviction. “You are treading on the dangerous territory,” said Justice Mafusire.

Air Zimbabwe Holdings, said the judge, was not a parastatal, but a private company established in terms of the Companies Act.

Justice Mafusire referred to several cases in which it was settled that Airzim was a private company.

He said a look at the trial proceedings and records of proceedings before two other judges on the same case clearly showed that the question of whether Chikumba was a public officer was never dealt with.

The judge also accepted Adv Mpofu’s submissions that the law was clear that the application he brought could be made based on facts which were not placed before a judge who determined the previous application.

It was Adv Mpofu’s argument that when the original application for bail pending appeal was made, Chikumba, the state, the lawyers, trial court and the judges who dealt with the previous bail applications were all blind to the matter he raised.

In the end, the question whether or not Chikumba was a public officer was never determined, argued Adv Mpofu. The prosecution had raised a preliminary point arguing that the application was improperly before the court.

It was also argued that the High Court had no jurisdiction to hear the matter which it has already determined. Chikumba was convicted and jailed seven years effective for criminal abuse of duty under the Criminal Law (Codification and Reform) Act.

A charge of criminal abuse of duty is only applicable to public officers as defined in the country’s statutes. In view of the changed circumstances, Chikumba believes that his prospects of success on appeal are high and seeks to be freed on bail since it is clear that the Criminal Law Codification and Reform Act, excluded Air Zimbabwe Holdings (Private) Limited workers from the list of public officers.

Golden Sibanda Senior Business Reporter
TETRAD Investment Bank and TFS Asset Management creditors are working on plans to convert their debt into equity in an effort to avoid liquidation of the bank. Creditors with investments valued at $30 million in the troubled bank have already given their support ahead of a crucial meeting next month to consider the request for TIB to be taken over and be reconstructed by the creditors.

The creditors include clients of the Tetrad Group’s subsidiary, TFS Management, which is currently under liquidation, who had $11 million of their money negligently invested in the troubled bank’s money market investments. Mr John Graham, chairman of the Tetrad Creditors Group Trust Management Committee said: “We are continuing our efforts to increase the leverage of creditors, and we need another $23 million of support to obtain creditor reconstruction.”

The plea comes as TIB creditors are scheduled to meet at the High Court on October 1, 2015, for a meeting called by the provisional judicial manager, before submission of his proposal to the High Court on the way forward for the bank. Mr Graham said Tetrad creditors, who have sought and obtained proxy of TFS Management clients, did not know the judicial manager’s decision on the continuation of statutory recuperation and liquidation of the distressed bank.

But he stressed the fact that creditors of the group, who require 75 percent or $64 million by value, of creditors’ support to push through their demands, want reconstruction of the bank to be given the most consideration.

This is because the creditors believe that they would receive significantly less of their invested value in the bank if the institution proceeded to liquidation, even in circumstances where some of the creditors hold security such as properties. He said that the major drawback with immediate liquidation was that creditors had little to no control over disposal of assets, which may be over a short period.

The proposal for creditor reconstruction also comes after two investors who had shown interest, withdrew leaving liquidation the most likely option for the judicial manager if creditors simply sit back and wait for events to unfold.

Under “fire sale” or forced disposal in order to settle liabilities of the bank, most assets would fetch grossly discounted prices. Notably, reconstruction would leave the bank with net assets of $30 million after conversion of the $64 million creditor liabilities into equity.

“We have our very own example where four units at Virginia Gardens, booked at $320 000 each were disposed of by auction for between $60 000 and $80 000,” he said.

At the very least, the properties should have sold for $200 000. As such, rough assessment of the potential returns from liquidation indicates that secured creditors might get 25 cents per dollar and unsecured creditors 5 cents.

“This is based on a recovery rate of 26 percent for assets as a whole,” Mr Graham noted. “Therefore, in the event of a vote being called, we need to be in a position to vote for that alternative to be proposed and considered. We do have a plan, and have considered many of its consequences, most of them favourable to the objectives of the creditors,” Mr Graham said on Wednesday.

Mr Graham said their suggestion was not an attempt to reinvent the wheel, but an idea strongly informed by success stories of experiences in Zimbabwe where once troubled banks, CBZ and ZB were nursed back to good health.

Then Bank of Credit and Commerce International failed in 1991, got split between bad and good bank by way of separating distressed and healthy assets. CBZ is today Zimbabwe’s biggest bank. The bad bank, CBZ Nominees recovered, over time and in an orderly way, a good amount of its distressed assets.

Apart from increasing the possibility of recovering significantly more value through reconstruction of the bank, creditors would realise their wish to institute a forensic audit to determine exactly what transpired at the institution.

The forensic audit would also enable litigation against directors if it deemed they conducted the affairs of the bank in a negligent or grossly reckless manner. This comes amid revelations that 90 percent of funds extended to beneficiaries went to only 27 borrowers, some believed to have gone into liquidation. Creditors also want judicial manager, Deposit Protection Corporation, to ensure that shareholders do not continue to dispose of assets.

Zimbabwean video on demand(VOD) platform TV Yangu has signed a groundbreaking deal with Viacom, the parent company of MTV, to screen the 4th season of Shuga, the popular African television soap opera. Shuga first aired in November 2009 on MTV Base, and the thrust behind the soapie was to spread the message about responsible sexual …

The post TV Yangu signs deal with MTV to screen Shuga Season 4 appeared first on Creative Loop.

PRINCE to the Sungura throne vacated by Tongai “Dhewa” Moyo — Peter — still has a lot of work to do if he is to successfully fill the void left by his father, Tourism and Hospitality Industries minister Walter Mzembi has said. Speaking at the launch of Peter’s second album Mabasa aMwari, on Friday night,

Removing President Mugabe from office cannot be an economic policy issue around which political parties can form a coalition, Professor Lovemore Madhuku has said. In an interview last week, Professor Madhuku said his National Constitutional Assembly would not be part to any such coalition, particularly one involving MDC-T leader Mr Morgan Tsvangirai, whom he described

Bekithemba Nkiwane- Bulawayo Correspondent | Vice President Phelekezela Mphoko was yesterday one of the dignitaries at the controversial Mzilikazi memorial event in Matopos where he said the Mthwakazi monarchy is returning and will be established. The event which is organised annually by a combination of Mthwakazi cultural groups seeking the re-establishment of the Mthwakazi Kingdom has

A Lupane man has become the sixth person in his family to commit suicide after hanging himself from a tree for undisclosed reasons. Dokotela Moyo, 67, who was popularly known as Makhanda from Lutho Village, under Chief Mabikwa in Lupane, took his own life in the early hours of Friday barely five months after his