Much more to do, Mr Tomana

20 Jul, 2014 - 06:07 0 Views

The Sunday Mail

An open letter to the Prosecutor-General from a businessman who experienced sanctions first-hand.

During my tenure as a board member, representing Government interest on both the ZIMRE Holdings and ZIMRE Property and Investment Company boards of directors, I advocated mounting a lawsuit against the United States government for imposing economic sanctions on the country through the Zimbabwe Democracy and Economic Recovery Act of 2001.

I considered this option after the US, using the Office of Foreign Assets Control, had unfairly confiscated about US$1 million of ZIMRE funds.

My view then and even now remains that this was akin to the action of Somali pirates seizing international cargo on the high seas. Perhaps the only difference was that the act was undertaken by a “superpower”, which had mistakenly accorded itself divine powers to act in this manner.
My views on this issue did not prevail right up to my time as ZIMRE board member came to an end sometime in 2012, after at least seven years of loyal and, hopefully, fruitful service.

During that period, I strongly believed that both European Union and US sanctions merited lawsuits initiated and funded by the Government of Zimbabwe in the national interest, given their disastrous effects.

At the very least, a collective legal action by those such as ZIMRE, ZB Bank and the Industrial Development Corporation who had been directly and financially prejudiced was warranted. It appeared former Senator and Deputy Minister Aguy Georgias had been left to fight a lone battle at his own expense, time and effort.

The fact that he was also pursuing the interests of his private company, Trinity Engineering, should not have been allowed to distract the nation from the reality that this was indeed part and parcel of a broader national agenda item, and should, thus, have been viewed as such.
It is, therefore, with the greatest relief and appreciation to notice that your good office has instituted a legal challenge that is now being heard at the EU General Court.

Stealing diamond ore
Whatever the outcome of this case against the European Union, I wish to highlight other related and pertinent cases that your office may consider pursuing.

A positive outcome in the present case will only further strengthen the cases below:
— Compensation for the prejudice now commonly estimated at US$42 billion, which Zimbabwe suffered as a direct result of these heinous and evil sanctions. I understand this amount only relates to economic and financial prejudice suffered and damage to or deteriorations of major national infrastructure. This figure needs to be recomputed more accurately and comprehensively, and my prediction is that it will increase significantly.

— Another pertinent issue which may not be directly linked to the sanctions, but happened around the same time or a bit earlier, we should also seek compensation from a well-known South Africa-based multinational, which scooped more than 100 000 tonnes of our diamond ore on the alleged false pretext of sample-testing in South Africa.

The results of such tests were never made known to Zimbabwe, and the value of any diamonds established through the samples was never disclosed. The records for all these activities are apparently all intact and available at our Ministry of Mines and Mining Development offices.

Given subsequent activities relating to alluvial diamond mining by various companies and individuals at the Marange diamond fields, the potential prejudice to the country could be huge. We are talking of possible mega-bucks here.

If we succeed in this legal action, any proceeds that may come our way should go straight into the coffers of the proposed National Sovereign Fund for the benefit of both present and future generations of Zimbabwe.

— Recovering amounts confiscated under Ofac from ZIMRE, ZB Bank, IDC and other corporates and individuals, as already mentioned. It is also important for Mr Georgias to be refunded and rewarded for his endeavours done in the national interest.

— Compensation for defamation arising from alleged freezing of non-existent assets of individuals (including but not limited to His Excellency, the President) and corporates on the sanctions lists.

— Last but by no means least, a lawsuit against the original and combined Movement for Democracy Change political party for having advocated (begged) for these sanctions in the first place.

Only those who joined the party after the imposition of the sanctions can be exonerated from this treacherous crime. I stand guided on this matter, but my layman view is that this act by the MDC was treasonous under both the old and new Constitutions, more so if it can be proved that it was carried over to the period of the inclusive Government.

Most people will also recall how the MDC-T in particular on numerous occasions tried ill-advisably and cruelly to use the continuation of sanctions as a political strategy against Zanu-PF.

It should also never be forgotten that some students (children of Zanu-PF politicians) were abused by having their studies cut prematurely in Australia and sent home packing at the behest of the same party.

Social consequences
I am not quite sure how the sanctions saga should be handled from a legal perspective in regard to its dire social consequences.
These sanctions, no doubt, caused a major social upheaval. Zimbabweans migrated to other countries in droves to escape economic implosion and became economic refugees to host nations.

Family units disintegrated and some will never recover, ever. Anti-social behaviours also manifested themselves both on home and foreign soils with negative effects, as a direct result of these large human movements.

Even more painful was the fact that thousands of those who decided to stay put at home died of both curable and incurable diseases mainly due to lack of medicines; the absence of medical staff that had also left for greener pastures as well as dilapidated health infrastructure and obsolete equipment, among other reasons.

Cholera, typhoid and HIV are among the diseases that could have been contained.
Education and other social amenities suffered the same fate as the health sector. Basic commodity and service shortages became the order of the day and were a source of immense suffering and inconvenience to the populace. Zimbabweans endured world record hyperinflation.

Indeed, the strategy of the US, as enunciated by then assistant secretary of state Mr Chester Crocker in his speech to the US senate pushing for the sanctions with the primary objective to make the economy “scream” and get Zimbabweans to turn against their President and his Zanu-PF party, had been largely achieved by 2008.

The Zimbabwean economy “screamed” at the top of its voice, so to speak, and about half the electorate voted for the MDC in elections held in that year, apparently against their better judgment, for most of them at least.

In conclusion, internally the following matters cry out loud and clear for legal attention and solution, and have their roots firmly and squarely, in the sanctions debacle;

A case, particularly against the dysfunctional and now defunct inclusive Government, which collapsed the local currency in the initial stages of its coming into office. This had a myriad of catastrophic side effects, chief among them being that:

— Zimbabweans were not compensated in foreign currency at the time for the value of their Zimbabwean dollars, which were and remain legal tender to this day. Both natural and unnatural legal persona and other organisations suffered immensely as a result of this illegal omission and some never lived to recover from this massive blow.

— Pensions and insurance policies lost value overnight, one of the major causes for this being Government’s default on honouring its obligations on prescribed assets denominated in Zimbabwean dollars, which it had borrowed from these funds or companies to meet national requirements as it was entitled by law to do and indeed continue to be so entitled to this very day.

To add insult to injury, the Zimbabwe Stock Exchange, for all intents and purposes, also collapsed at about the same time and is taking long to recover. Some pensioners or those retiring died, traumatised or rendered destitute by virtue of the meagre pensions that they were now entitled to or getting after many years of service to the nation or companies, which services they were now not in a position to re-offer by reason of advanced age.

Insurance policy holders were generally left shell-shocked by what had become of their envisaged final benefits. In short, this was a financial scandal of the worst nature and scale, whose full story is yet to be fully understood or told for the guidance of future generations.

I rest my case.

Edmore AM Ndudzo is a former member of the boards of ZIMRE Holdings and ZIMRE Property and Investment Company. He wrote this letter in his personal capacity as a Zimbabwean citizen.

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