Zimbabwe: Acie Lumumba was fired, before he was really hired!

That Finance and Economic Development Minister Mthuli Ncube looks clueless these days is evident. As on the 19th October 2018 he had an photo-op and a letter appointing Acie Lumumba as the Chair of his Communication Taskforce. However, on the 22nd October the Ministry of Information, Publicity & Broadcasting said this:

Mistakes were made but advice from govt lawyers indicate there are legal housekeeping issues regarding the Procurement Act Cap 22:14 which need to be regularised and the Ministry of Finance is dealing with that” (Ministry of Information, Publicity & Broadcasting, 22.10.2018).

Clearly, the foul-mouthed, free-talking former ZANU-PF was to much to handle. This is like the mouth of Anthony Scaramucci in the White House. Who was hired and fired before really starting his job as White House Communication Director. The ZANU-PF are going within the same parameter with this hiring and firing. It is the same level of incompetence and lack of due diligence.

Now, the mistakes and regulations has to be looked into, as the operative Communication Taskforce wasn’t in full effect. However, someone knew this was happening and someone had given a heads-up for doing this? If not they are looking even more clueless and lack of procedures before hiring and appointing boards or operations within the government.

They knew before hiring, that Acie says whatever he feels like and acts a big-shot. He wants to be big-man in the family and wants to ride the fancy car, even if he complains that the civil servants has one. He wants himself two of them and without cost. We all know it, but acts indifferent.

Lumumba knows the game perfectly well, but that this Taskforce would back-fire this quick. That the mouth of Acie would have aftermath. That was special. Even as the Minister Ncube are getting other to speak on his behalf. As he knows perfectly well why he did it and why he hired him. We don’t know that yet. But this is mere days after the appointment and still no effort of explaining. Just that it is a mere mistake. Like putting salt instead of sugar in the tea. I know it is ghastly, but that is why refill and try again with new boiled water.

Clearly, Ncube isn’t a big game changer from Chinamasa, as the new Minister hasn’t proven any skills or any ways to make it better. Only to ensure the same old troubles of inflation, lack of foreign currency and trying to forge a narrative of someone else fault for failing economy. Instead of coming out saying, that he had no idea what the consequence would be if they levied the newly minted taxes. Which has hit the economy and the foreign exchange to a manner, that the Republic haven’t seen in 10 years. When the economy went of the rails.

We just have to wait and see, as the damage control is under way. Lumumba saying no one can hire him and has the biggest company ever. However, he did smile and have the photo-op. We are not that stupid. Even if he thinks the people is…

ZANU-PF, stays Pfee the future away. Let see how this will twist. Certainly, it will not boring. Peace.

RBZ: Suspension of Senior Reserve Bank of Zimbabwe Officials Pending Investigations (23.10.2018)

“The RBZ has suspended 4 senior employees implicated in corruption by Acie Lumumba.

Those suspended are

1 Norman Mataruka

2 Azvinandaa Saburi

3 Mirirai Chiremba

4 Gresham Murazikwa” (Povo Zim, 22.10.2018).

Opinion: Mnangagwa’s albatross, the economic crisis, that is self-inflicted!

This is a short time coming. It isn’t a long ago the 2 % taxes on Mobile Money Transactions and other financial services came into effect in Zimbabwe. Still the ramifications has been dire and the consequences has hit all walks of life. Even Unions and Civil Servants are asking the government to get their salaries in US Dollars, than in the Bond Notes. That shows the lack of value in the temporary currency, which is still floated around and never was really a good idea in the first place.

That President Emmerson Mnangagwa tries to show some concern by writing to the Republic in the midst of credit crisis, a foreign exchange crisis and the sudden lack of imports of products because that is good. However, he is trying to say they ones tricking and finding a way to make is the issue. Not that the government haven’t done their job to monitor, safeguard and build a resilient economy. If they had done that, they would have known the consequences of their actions and would also have mechanisms that could ensure the balances of books and also enough reserves to fill the gaps. However, that is pipe-dream, as the ZANU-PF are making sure the hyper-inflation and lack of goods becomes a main-stay in ordinary life.

Here is notable quotes from what the President wrote on the matter:

Sadly, events of the past two weeks have shown this is not so. Not everyone is playing to the rules. Partly because of wanton illicit currency deals happening in what is known as the black market, our economy has been disturbed. We have suffered massive market failures, manifesting in complete collapse of the pricing framework for virtually all commodities, regardless of import component. There has been a run on the bond note. In all this, there have been no winners, given that at the end of the day we are all consumers who demand and buy goods and services at any one stage for our survival” (Mnangagwa, 2018).

Lately, our law enforcement agencies have been investigating these illicit activities. It has come to light that the money changers we see in street corners are mere “runners” who work for big currency sharks who operate from high places in air-conditioned offices. The real culprits are not these “runners” who are but a tip of a big and scandalous financial iceberg” (Mnangagwa, 2018).

Currently we have no legislation to deal with currency manipulators. We therefore need urgent and robust measures to deal with this financial menace. Of course, I am aware of what else needs to be done by way of policy changes and key adjustments in different sectors and aspects of the economy, including in the public sector. These changes and adjustments are already being done, and will continue to be done until Government plays its own part in stabilising the economy by living strictly within its means” (Mnangagwa, 2018).

Let’s be clear about the value of the currency and the inflation, these are rates that barren on the principal that the Financial Ministry and Central Bank are controlling. Such in a manner, where the Monetary Policy and the International influence are in tandem. To an such extent that they are making sure the wages, the prices and the value of currency are leveled. In a manner, where it is livable and create a fixed growth. However, in Zimbabwe it is a free-for-all. Where a single tax and a lack of oversight with the Bond-Notes, also the oversight of currency in general. Are the reason for the short-falls and lack of cash. This is done, because the state isn’t doing their job of creating sufficient mechanisms and reserves to have a baseline even for the economy. When that is created and the vacuum has to be filled, the prices on the currency is growing, the inflation’s and the higher prices is the outcome. This isn’t something new, but an old ways of lack of resources, lack of basics and the needs of the market to push prices to cover costs. This isn’t manipulations or sharks. This is laziness of the Financial Institutions and the ones not using their oversight rule.

The already weak Bond Notes, the hated ones, that never was a good idea. Has ensured this downfall of currency. Combined with higher taxes, that takes vital funds out of the market and also empties the reserves of the companies to get more foreign exchange, but also makes it more expensive to get new stocks in the shops. This is a negative spiral self-wounded by the government, by a quick trick of transactions expensive and seeing the short-fall happening as consequence.

The previous Finance Minister called the Zimbabwe Economy an Albatross, I think he was right. Because there seems to be no one caring for having reserves, thinking of a rainy-day and also thinking of the outcome of any measure done into the economy. They should have built graphs and expected certain reactions to the levied taxes. However, they seems shocked and the President has to make excuses. Instead of saying they are incompetent and not having the man-power to stabilize the economy. They are instead making the currency traders, the Forex businesses and whoever who imports goods to blame. Because they are not seeing the Albatross, and neither the consequence of their actions.

The President and his men, should have known better, but they act all holy. When they are the ones living in sin. Peace.

Reference:

Emmerson Mnangagwa – ‘Stabilising the economy: Tackling the parallel market’ 21.10.2018 link: http://www.sundaymail.co.zw/stabilising-the-economy-tackling-the-parallel-market/

Uganda: Standard Chartered Bank disowns Bank Statement purportedly belonging to its client (19.10.2018)

Zimbabwe: ZIMTA – Press Release – Demand for Salaries in Foreign Currency (19.10.2018)

Zimbabwe: Finance Minister Ncube appointed Acie Lumumba as his mouth-piece!

The strongly spoken personality and active political operative Acie Mutumanje Lumumba was today appointed by Minister of Finance Mthuli Ncube as the Chair of Communication Taskforce. Clearly, the controversial and former VIVA Zimbabwe have now gone back to the fold. He will now be the mouth-piece of the Finance Ministry. As they are in the midst of deadlock with levied taxes and lack of foreign exchange, lack of imports and long fuel ques. Clearly, these financial times will be hardship to explain the needs and be a voice of the Zimbabwe African National Union – Patriotic Front (ZANU-PF).

The Pfee will get a loyalist, even as he has just jumped back. Even when he was out, he was usually vocal of goodwill for the ruling regime. Therefore, he has been known on the outside of the Republic. Not only for the good news, but because of his attitude. That is why this is a proof that Acie is hungry and he needs to eat.

That they have hired him as he was vocal against Mugabe, shows that the new Finance Minister are seeing him as a tool and useful person to co-operate his messages. As the Ministry own Taskforce has to activate and secure their message out to the public.

This is the man, that has been disregarded, called foul-mouthed and fishing for relevancy in 2016. In 2017 he said Mnangagwa was the right man for the Zanu-PF. Now in 2018, clearly the fishing expedition of Lumumba has paid-off.

We can see what he will do, but he has to follow the program. He cannot rant and be himself. Stick to the message of Pfee and the ones in-charge. He might be the chair of a taskforce, but he will not be the kingpin. That will be Ncube who orders and says what Lumumba will sell. If it is toxic or unreal, if the loans are not happening or if they finances are worse; than what the regime wants to tell the public.

Acie Lumumba will now not be the renegade, the vocal figure, but he was only doing that for his own gain. It is not like he generated a following or anyone jumping behind him. He was speaking out his mind and another perspective, but not something that changed the narrative. The ZANU-PF did what it did.

Now they captured him and he will be the voice that Ncube needs. Peace.

The Sentry’s new report have been digging into the export of conflict Gold to the Gold Refinery in Entebbe!

The conflict gold trade sustains ruthless armed groups such as the FDLR and Congolese army units that commit mass atrocities, sexual violence, and other human rights abuses against the population of eastern Congo. It is critical that actors in the international community, especially global banks that trade gold and the consumers of gold, know the origins of the precious metal they are buying. More importantly, governments and companies need to take action against the corporate networks that traffic conflict gold and move it into the global economy” (The Sentry, P: 20, 2018)

Just as the Global Witness Report of June 2017 named “Under Mined” and United Nations Security Council Report from June 2018 named “Final report of the Group of Experts on the Democratic Republic of the Congo”. Today, the Sentry launched today the report named “The Golden Laundromat”. They are all digging into the illegal and sinister gold trade of the Democratic Republic of Congo and the possible money laundering scheme of President Yoweri Kaguta Museveni and his brother Gen. Salim Selah. Who is both invested in this operation.

This report is again stating the fact and the reality with this trade. As the Sentry is proving new perspective to the matter. These being their analysis of the documentation of the operation and more into the Goetz business practices, which are vital for the export of these conflict minerals. They are showing the trail from the fields and mines in the DRC to the World Market.

Here is some quotes, which I think was worth taking a minute to digest:

According to interviews conducted and documents obtained by The Sentry, there is a significant risk that AGR sources conflict gold from eastern Congo, and that it imports illegally exported artisanal gold mined in eastern Congo. In 2017, according to documents reviewed by The Sentry, AGR refined and exported 9.3 tons of gold, although the company says it exported 7.7 tons. Several people involved in the trade of Congolese gold with direct knowledge of AGR’s operations told The Sentry that the company sources gold from conflict-affected parts of eastern Congo. Two prominent gold smugglers in eastern Congo acknowledged they sold illegally mined and trafficked gold to AGR from 2016-18, which two South Kivu-based traders confirmed” (The Sentry, P: 8, 2018).

Furthermore, there is at least reason to suspect that AGR buys gold. Trade insiders told The Sentry that AGR buys gold, and Goetz reportedly decides on the price paid to traders, as well as arranging terms and scheduling of payment. Ugandan export records indicate that AGR exports gold: it exported 9.3 tons of gold in 2017, although AGR says it exported 7.7 tons. Goetz’s original AGR project proposal sent to President Museveni in 2014 calls into question the company’s commitment to due diligence. In the document, Goetz, on behalf of Tony Goetz NV, states that AGR should attract gold from the region and that any gold traders who do not have official documents should be allowed to sell gold to AGR but pay a $500 penalty” (…) “From Uganda, AGR’s gold flows to other Goetz-controlled companies in Dubai. The DMCC was scheduled to audit another company in the Goetz network, Tony Goetz NV, in 2017, but no new audit report has been published. Despite the lack of an updated audit, Tony Goetz NV remains a Dubai Good Delivery (DGD) member today. It had passed the DMCC’s audit on responsible practices in 2015 based on its 2014 activities – before AGR was launched” (The Sentry, P: 13, 2018).

According to documents reviewed by The Sentry, Goetz sought the intercession of President Museveni in 2014 in order to gain a 10-year tax break for AGR. Three years later, that became a reality when President Museveni announced a pending zero percent tax rate essentially benefitting only AGR. This, in turn, potentially relates to a fourth FATF AML red flag that is applicable to the Goetz network: registration of a trading company in a tax haven even though its business relates to another jurisdiction. While Uganda is not a traditional tax haven, as a practical matter, it presently serves as one for gold refining since Uganda changed its tax structures on gold to attract gold companies” (The Sentry, P: 17, 2018).

What we are seeing as some would be shocked, other would see the deliberate action of the President to support and earn of the illegal gold trade, also ensure the business in Uganda. That the DRC can be used and illegally export the gold, where the business-partner are acting on behalf of the President that has made the arrangement for the refinery in Uganda. This has been done, while also giving AGR a tax-holiday, so that the production will not be taxed and neither able to follow ordinary customs. That means the President and brother together with Goetz knows perfectly well what happens from the DRC to the World Market. They are earning fortunes on the illegal gold trade and is single-handed securing the profits because of it.

The Sentry has done great work collecting the documentation for this and proving their allegations. As others has done to of late. They have extended their work and shown more meat to the bones. Making it a juicy stake. That is showing the acts of violence and killings in the DRC are benefiting the Ugandan President to this day. He is earning wealth on the misery of the Kivu’s, as they by doing this trade keeping up the in-security there. So, that the illegal gold trade can persist… and linger on.

President Museveni knows this and blames the MONUSCO still for being there to long. But his reach and his hands are in the cookie jar. As it has been since he supported Laurent Kabila to overthrow Mobutu. Peace.

Reference:

The Sentry – ‘The Golden Laundromat – The Conflict Gold Trade from Eastern Congo to the United States and Europe’ October 2018

Zimbabwe: Press Statement by the Hon. Minister of Energy and Power Development – Dr. J. Gumbo on the use of Containers in Buying Fuel (17.10.2018)

Safaricom: Revision of Mobile Tariffs (17.10.2018)

UPF: “Re: Provision of Security to cover an Album Launch at Mandela National Stadium on 20th October 2018” (16.10.2018)