When Bill Gates suggested in his key note address at the ICTD 2009 conference in Doha that the time isn’t right to invest in Zimbabwe quite a few people took him to task. But one has to ask whether the people commenting negatively on Bill Gate’s statement on the Connect Communicate Collaborate blog would actually put their hands in their own pockets and invest in Zimbabwe especially when government entrenched corruption and fraud is par for the course in Zimbabwe.

I have maintained a Forex Currency Account (FCA) with Barclays for 5 years now with of course the usual complaints a customer has: tellers who take their time malingering etc. But this is a first and I have a feeling others could been in this mess. I have been doing regular withdrawals after getting confirmation from both the depositor and Barclays. And then this week I was told my account was OVERDRAWN. For me it was the case of the missing dollars that the legendary sleuth Sherlock Holmes would be well placed to sniff out. Why would a bank allow a client to overdraw an FCA, I wondered? Each time I walk in I ask if I have enough money to withdraw and it is only then that I make any transaction, but then this week, the money I was expecting and which was confirmed by the sender suddenly wasn’t there. The bank appears to have bit off more than it could chew as it took more than what I have! Now I’m told I actually owe the bank! How’s that for a new Zimbabwe. Something is terribly wrong here and I believe this is not an isolated case after reports that the RBZ has been dipping its fingers in the till. - Kubatana subscriber

and . . .

Recently Hivos, a Dutch development organisation, said it was demanding repayment from the Reserve Bank of a total of EUR90,000 which it said has not been accounted for from a total of EUR300,000 taken from its account by the central bank. The organisation has since opened a new bank account in Botswana. Last year, the Global Fund to Fight Aids, Tuberculosis and Malaria said EUR5.64 million was missing from its bank account in Zimbabwe. The money has since been returned. On 18 April, Reserve Bank Governor Gideon Gono, a member of Mugabe’s inner circle, admitted raiding foreign currency accounts. Gono defended the action, saying it was done to save the country from “maximum danger” due to difficulties arising from western sanctions. He also admitted in a statement to purchasing 29 vehicles for three state universities – Great Zimbabwe, Midlands State University and Chinhoyi University of Technology – using foreign currency in expenditures that were outside of the budget. - University World News (UK)

Until the Zimbabwean authorities clean up their act, Bill Gates is right to be skeptical.

As a Business Day article recently pointed out the Zimbabwean Government of National Unity figures that

obtaining international aid is based on a simple premise: after a few hiccups the country’s new unity government is running smoothly, so it’s time the world loosened its purse strings. Most governments with deep enough pockets to matter, notably the US and European Union (EU) members, have refused to buy into this rubbish.

Zimbabwe’s Finance Minister Tendai Biti is struggling to get the kind of big dollar support he is hoping for to resuscitate the country’s ailing economy.

He’s gotten a few nibbles – this week Zimbabwe secured USD 200 million in credit from SADC, and another USD 200 million in credit from COMESA. The UK has promised USD 21 million in humanitarian aid. Nothing to sniff at – but nowhere near the USD 10 billion plus injection Biti has been shopping around for.

Part of the problem, of course, is the global financial crisis – countries are worried about bailing out their own economies, and aren’t as open to helping out others as they might have been a year or two ago.

Part of the problem is scepticism. The IMF turned down Biti’s request, reportedly citing arrears and financial restrictions.

But most importantly, perhaps, Western governments at least are still under pressure to not give aid to Zimbabwe – until the government stops its human rights abuses, and commits to reform.

Human Rights Watch Africa Director Georgette Gagnon said in a statement today:

Humanitarian aid that focuses on the needs of Zimbabwe’s most vulnerable should continue. But donor governments such as the UK should not release development aid until there are irreversible changes on human rights, the rule of law, and accountability.

Continued farm invasions are getting a lot of media coverage, and are cited as one type of abuse that has to stop. As Tom Porteous pointed out in the Guardian (UK) yesterday, while perhaps less in the public eye, the attacks at the diamond mines in Marange are also a brutal form of human rights abuse. Porteous warns that donors can’t guarantee that aid to Zimbabwe will go to rebuilding the country’s infrastructure to promote basic human rights. Rather, it might still end up financing the forces which actively assault them.

There is much talk of reform in Zimbabwe but, as yet, no concrete action. The process of political change may have started but it is not irreversible. As long as Mugabe’s nexus of repression and corruption remains in place, no amount of development assistance will help solve Zimbabwe’s huge economic problems. And any economic aid to Harare from the UK or other donors will help to feed the crocodiles, just as surely as the blood-soaked profits of the Marange diamond mines.

So the MPs have been the recipients of the RBZ’s largesse? Suddenly the Guv’s activities are not quasi-fiscal now that the MPs are the beneficiaries?  “But what about the luxury vehicles that Ministers took delivery of on being sworn in?” Cried the MPs, when they received orders from the Minister of Finance to return the vehicles. “We too deserve luxury cars!” They whined.

“Comrades!”  he cried. “You do not imagine, I hope, that we pigs are doing this in a spirit of selfishness and privilege? Many of us actually dislike milk and apples. I dislike them myself. Our sole object in taking these things is to preserve our health. Milk and apples (this has been proved by Science, comrades) contain substances absolutely necessary to the well-being of a pig. We pigs are brainworkers. The whole management and organization of this farm depend on us. Day and night we are watching over your welfare. It is for your sake that we drink that milk and eat those apples.”*

“Surely, comrades, surely there is no one among you who wants to see Jones come back?”

Now if there was one thing that the animals were completely certain of, it was that they did not want Jones back. When it was put to them in this light, they had no more to say. The importance of keeping the pigs in good health was all too obvious. So it was agreed without further argument that the milk and the windfall apples (and also the main crop of apples when they ripened) should be reserved for the pigs alone.

So the hospitals remain without doctors, medication and equipment. The schools remain without books, teachers and pupils. Budiriro remains without water; in the grip of a now unspoken cholera epidemic. The killer highways remain. 500 km away from the seat of power, crocodiles maintain their vigil in the Limpopo River, patiently waiting for the border jumper, wading into the river’s deadly depths. Still hoping for a better life on the other side. Better this animal, than the one in Harare. 7 bus loads of women, occupying a 75 seater bus will die this year while delivering the nation’s next generation. Children who will join and swell the ranks of the country’s 1.3 million orphans; to continue inexorably on the road to destitution. While the new political elite jostle at the trough.

* George Orwell

It’s 15 days into the “First 100 Days” of implementing the Short Term Economic Recovery Programme, and government hasn’t even released the plan of what it’s considering in the short term – much less implemented any of it.

The MDC is stuck between a rock and a hard place. On the one hand, they know that public confidence depends on them making some tangible headway in Zimbabwe’s economic recovery. On the other hand, governments like the US are refusing to give them the financial support they need unless there is rule of law and respect for human rights.

The latest report from the International Crisis Group supports the MDC’s calls for “humanitarian aid plus.” This would see Zimbabwe getting aid for education, health care, civil servant salaries, and infrastructure projects. But, given the stance the US is taking at least, it seems unlikely Zimbabwe will get the support it needs any time soon.

Ambassador James McGee said recently:

It is illegal under the existing laws of the United States to pay salaries to civil servants – we call it budget assistance. I cannot pay a secretary for the Ministry of Health or an economist in the RBZ, I would go to jail for that. What we are trying to look at is other ways of helping the government of Zimbabwe like revitalising Harare Central Hospital. The government itself will have to pay its civil servants and I hope it will be able to generate money to pay its civil servants. Read more

African countries have been approached to assist Zimbabwe, but most have limited funds themselves. If the interim government can’t stop the latest wave of farm invasions, and demonstrate a dramatic turn around in civil liberties, it will be difficult to persuade the US and EU to provide “humanitarian aid plus.”

Meanwhile, the RBZ’s dirty laundry is also coming out – Gono has admitted to raiding the bank accounts of private companies and international NGO’s for foreign currency. But, he swears, that’s all in the past – “Let bygones be bygones,” he says.

When will the interim government start demanding higher standards – and acting on some of its promises?