Zimbabwe’s y/y inflation won’t be published till February – The Zimbabwean

Ncube said the change in currency regime from multi-currency to the Zimbabwe dollar had impacted on the base for calculation of CPI indices and, hence, inflation.

Zimbabwe’s inflation was last recorded at 176% for the month of June, the highest in ten years.

“Given this transition, Zimstat will defer publication of year-on-year inflation while building up data of prices in mono-currency for a period of 12 months to February 2020,” said Ncube.

“This will ensure that we compare like with like in terms of currency regimes.”

He said a similar decision was made in 2009 after the change of currency regime, whereby Zimstat resorted to only gazetting month-on-month inflation.

“Year-on-year inflation publication will, therefore, resume after February 2020, alongside with month-on-month inflation publication.”

In the interim, stakeholders are encouraged to focus more on month-on-month inflation as barometer for price developments, said Ncube.

Power crisis turns night into day for Zimbabwe’s firms and families

Post published in: Featured

Morning Docket: 08.02.19

(Image via Getty)

* Is SCOTUS Trump’s “lap dog” — at least concerning the border wall? “[T]hat the majority rushed to give the administration everything it asked for, tells us all we need to know about the Supreme Court at this moment — and sadly, frighteningly, tells President Trump the same thing.” [New York Times]

* Where has Leah Wilson, the California bar’s executive director, been amid all of the madness concerning the state’s unhead of leak of its bar exam essay topics? As it turns out, Wilson’s son took the test this week, so she was “walled off” from everything having to do with the massive screw-up. [The Recorder]

* That’s all, folks! The Judicial Conference’s Committee on Judicial Conduct and Disability officially has no interest in taking another look at the previously rejected misconduct complaints against Justice Brett Kavanaugh related to his Supreme Court confirmation testimony. [National Law Journal]

* Cozen O’Connor recently acquired the Miller Law Group, one of California’s largest woman-owned employment law firms, and the combination will help bolster the Biglaw firm’s headcount in its its San Francisco and Los Angeles offices. Congrats! [Big Law Business]

* In case you missed it, Cyntoia Brown, the woman who’d been serving a life sentence since she was 16 years old and got her sentence commuted after catching Kim Kardashian’s attention (and the attention of the reality star cum law student’s legal team), will be released next week. [Refinery29]


Staci ZaretskyStaci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.

Power crisis turns night into day for Zimbabwe’s firms and families – The Zimbabwean

A worker checks a furnace used to produce wall plaster as the Plaster Centre plant is forced to run at night to avoid 18-hour daily power cuts in Harare, Zimbabwe, July 25, 2019. Picture taken July 25, 2019. REUTERS/Philimon Bulawayo

Moments later, eight men in blue overalls walk into a factory and begin shoveling a mound of gypsum into a drying machine to make wall plaster.

Zimbabwe’s worsening power shortages have effectively turned day into night for many businesses, with most work happening well after dark, when lights flicker on for a few hours.

For families, it is the same. Cynthia Chabwino, 32, is a mother of four young children. By the time the lights come on at her modest home in Hatcliffe township, on the outskirts of Harare, they are all fast asleep and she has a few hours to complete the household chores.

Chabwino begins her nocturnal routine by fetching water from an electric-powered borehole for use the next day. By 10 p.m., the line of women and children stretches more than 50 meters (yards).

She then converts a small coffee table in the middle of her living room into an ironing board and starts pressing the children’s uniforms for school the next morning.

“Our lives have become unbearable,” she said. “We are always tired now, but what can we do?”

The southern African country is producing just half of its 1,700 MW peak demand, the result of a prolonged drought that has reduced output at its largest hydro plant and aging coal-fired generators that keep breaking down, according to state-owned power utility ZESA Holdings.

The company has imposed rolling blackouts that last up to 18 hours a day, crippling factories and mines and compounding the country’s worst economic crisis in a decade.

Zimbabwe’s economy, initially forecast to grow 3.1% this year, is now expected to contract, Finance Minister Mthuli Ncube said on Thursday, without providing a figure.

Annual inflation surged to 175.66% in June, eroding earnings and stirring memories of economic chaos under former president Robert Mugabe, when hyperinflation forced the country to abandon its currency in 2009.

The hope that greeted Mugabe’s ousting in 2017 has now turned to despair as his successor Emmerson Mnangagwa struggles to revive the economy and ease shortages of electricity, fuel, medicines and bread.

The government says it plans to import power from its neighbors for now, expand and build new generation plants in the future and encourage off-grid power such as solar for consumers.

SEVERE IMPACT

The power cuts have cost manufacturers more than $200 million in lost production since June, according to the Confederation of Zimbabwe Industries and Zimbabwe National Chamber of Commerce.

The country’s largest mobile operator Econet Wireless (ECO.ZI) said in July it was struggling to maintain its network.

It said 1,300 base stations, a quarter of its total, now run on diesel generators for over 18 hours a day, burning 2 million liters of fuel every month and adding to its operating costs.

But it is small firms such as Moses Chipurura’s plaster factory – which provide much-needed employment in a country with a jobless rate above 90% – that bear the brunt of the outages.

“It is a very tough time indeed,” Chipurura told Reuters, barely audible as humming conveyer belts moved the fine, powdery building material for packaging at the industrial park.

Like many business owners, Chipurura, 41, has been forced to flip to a night shift at Plaster Centre in the capital, Harare.

Before the power cuts, the plant produced about 20,000 bags of wall plaster a month, he said. Production has now dropped to below 7,000 bags. But he still pays his 24 employees their full salaries, even though they only work six hours some nights.

He has installed a generator to try to keep up with orders. But he can only run it for four hours before it needs to cool down. However, diesel, like electricity, is in short supply.

“Running a plant of this magnitude on diesel definitely means I’m going to be forced to increase my prices,” Chipurura said.

“For now, we are absorbing the costs because the market is already under pressure from inflation. I do not know how long we can do this, though.” he said. “The past couple of months have been a nightmare.”

“WAY OF LIFE”

Zimbabwe’s only immediate hope to ease the electricity crisis lies in imports. The government on Tuesday said it had started importing 300 MW from a regional power pool and was negotiating for an additional 400 MW from South Africa.

Zimbabwe’s energy regulator is also raising electricity tariffs to enable loss-making ZESA to make much-needed repairs.

In the long term, China’s Sinohydro Corp plans to add another 600 MW at the Hwange thermal station, while Zimbabwe and Zambia will start building a 2,400 MW hydropower plant next year.

But for now, the prospects of an end to the rolling blackouts appear dim.

The relentless power cuts are not only affecting how businesses operate. They are up-ending people’s lives.

John Alfonzo, 42, manages the borehole Chabwino uses in Hatcliffe. He goes to bed around 6:30 p.m. so he can be up when the electricity comes back just before 10 p.m., to begin operating the pump.

“The moment that we receive electricity back, I have to rush and open for these people so that they are able to access water,” he said.

“Because of these power outages, we have since changed our way of life.”

Zimbabwe’s y/y inflation won’t be published till February
US Sanctions Zimbabwean Official over Post-Election Killings

Post published in: Business

US Sanctions Zimbabwean Official over Post-Election Killings – The Zimbabwean

HARARE – The United States on Thursday placed on its sanctions list a former Zimbabwean army general who commanded troops accused of killing six civilians after a disputed election a year ago.

The listing of Anselem Sanyatwe signals U.S. frustration over the lack of accountability in the Aug. 1, 2018 killings in the capital, Harare. There was no immediate response by Zimbabwe’s government to the U.S. announcement, which was likely to bring fresh anger from an administration that has pressed for the lifting of U.S. sanctions over past rights abuses.

Sanyatwe is the first to be sanctioned over the crackdown and the first Zimbabwean official listed since the fall of longtime leader Robert Mugabe in November 2017. Sanyatwe and his wife are now barred from traveling to the U.S.

Soldiers were deployed to suppress a protest against delays in announcing results of Zimbabwe’s first election without Mugabe on the ballot. The U.S. statement says it has “credible information” that Sanyatwe was involved.

The election had been peaceful, giving many people hope that the southern African nation was on the brink of change. Zimbabwean President Emmerson Mnangagwa, who took over after Mugabe’s forced resignation and was declared the election winner, had promised sweeping post-Mugabe reforms and re-engagement with the West.

Sanyatwe later defended the soldiers’ deployment while appearing before a commission of inquiry into the killings, but denied the army shot the protesters and instead accused the opposition.

He later retired from the army and was appointed ambassador to Tanzania.

Zimbabwe’s military has been sent into the streets since the killings. The U.S. sanctions statement also noted that “there has been no accountability for the excessive use of force by Zimbabwean security forces on civilians in January and February this year, which reportedly resulted in at least 13 deaths, 600 victims of violence, torture or rape, and more than 1,000 arrests.”

That crackdown came after protests in Harare over the country’s collapsing economy.

The U.S. and the European Union, which imposed sanctions almost two decades ago over alleged rights abuses, have in recent months issued several statements warning against continued violations.

Mnangagwa’s government has made the lifting of sanctions a top priority and has held several meetings with senior officials from the U.S. and EU to lobby for that and Zimbabwe’s readmission to the Commonwealth.

The killings “demonstrated to the whole world the crisis of governance that has defined the character and the nature of the problem in Zimbabwe,” opposition leader Nelson Chamisa, who placed second in last year’s election and lost a court challenge to the results, told a prayer meeting on Thursday to remember the killings. “After the departure of Mr. Mugabe, nothing has changed. The old cannot renew.”

Zimbabwe’s GDP to shrink as power price hikes pile on economic misery – The Zimbabwean

Finance Minister Mthuli Ncube gestures during a media briefing in Harare, Zimbabwe, October 5, 2018. REUTERS/Philimon Bulawayo

Prices of basic goods and services have more than doubled since June, when the government renamed the RTGS currency as the Zimbabwe dollar, which has been sliding in value amid widespread shortages, including power, fuel, U.S. dollars and bread.

That has stirred memories among an increasingly impoverished population of economic chaos a decade ago, when rampant money-printing fueled hyperinflation and forced the country to abandon its currency.

“The revised 2019 GDP growth is expected to be negative,” minister Mthuli Ncube told parliament in his mid-year budget review, without providing a figure. In November he had forecast growth of 3.1% growth.

He also said average domestic electricity tariffs would rise to 3 U.S. cents per kilowatt/hour from 1 cent with immediate effect as the government seeks to raise more funds for power generation.

The businesses tariff would average 5 cents while mines would pay up to 9.86 cents depending with the sector, he said.

“These are short term measures we are taking to ensure better supply of power with immediate effect,” Ncube said.

Zimbabwe has been suffering acute power shortages since May, as a result of a prolonged drought that has reduced output at its largest hydro plant and ageing coal-fired generators that keep breaking down.

Ncube also said Zimbabwe would defer publication of year-on-year inflation until February 2020 because adoption of a new currency impacted the base for calculating the consumer price index. Only monthly data would be published.

Annual inflation hit 175.66%, up from 97.85% in May.

GROWING DESPAIR

The hope and euphoria that greeted long-time leader Robert Mugabe’s departure after a coup in 2017 has gradually turned to despair as his successor as president, President Emmerson Mnangagwa has failed to revive the economy or usher in meaningful political reforms.

The main opposition boycotted Ncube’s presentation attended by Mnangagwa, whom they do not recognize after disputed elections last year.

Workers’ incomes have been eroded by the resurgent inflation and many now struggle to buy basic goods like sugar, flour and cooking oil.

In a bid to give some relief to workers, Ncube raised the non-taxable income threshold from 350 Zimbabwe dollars ($76) to 700 Zimbabwe dollars. He said the government would import grain to feed 5.5 million people in need of food.

Foreign investors could now own majority stakes in platinum and diamond sectors, Ncube said, adding that indigenisation and empowerment law that limited foreign ownership would be repealed and replaced by new legislation.

But Zimbabwe’s economy is in meltdown, fuelling popular anger, and there are concerns of a resurgence of the violence that spilled onto the streets in January, when a sharp fuel price hike sparked protests and an army clampdown in which more than a dozen people died.

Yet, analysts say increases in the price of fuel and electricity tariffs are needed to remove subsidies and put government’s finances on a strong footing.

Ncube said the government ran a budget surplus up to June, first time in years, stopped runaway money-printing and ended offshore borrowing. It has not used a central bank overdraft under an IMF staff monitoring program, actions that are supposed to revive the economy.

But probably the biggest driver of inflation expectations is the lack of confidence many Zimbabweans have in the country’s new currency. Before its reintroduction, it was named the RTGS dollar and had been artificially pegged to the U.S. dollar, leading to a huge discrepancy between its official and black market rate.

Many citizens also doubt their leaders can deliver the changes they seek because they are mainly the same people who propped up Mugabe for decades.

US Sanctions Zimbabwean Official over Post-Election Killings
US paying $475G toward border wall – in Zimbabwe: report

Post published in: Business

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Lawyer Jumps Off Roof Of Courthouse, Returns To Courtroom To Be Sentenced

Will County Courthouse via Will County Board website

Adam Wirtz is undoubtedly less risk-averse than the typical attorney. While most of us are toying with what mutual fund strategy maximizes our retirement security, Wirtz is climbing the new courthouse and leaping off.

Wirtz base jumped off the Will County courthouse a few months ago and landed safely in the parking lot of the Joliet police station, which wasn’t the ideal landing spot since jumping off of government buildings is totally illegal.

In a return performance at the courthouse, Wirtz was a bit more subdued, receiving a $600 fine and 100 hours of community service work, with 50 hours that will be performed at an animal shelter. All told, hanging out with puppies for the next few months isn’t the worst punishment in the world. If all you’ve got to do to draw that gig is jump off a building, then sign me…

Actually, no, I’m not jumping off of any building. I’m too cautious for that.

Lawyer Who Jumped From New Courthouse Gets Sentenced [Patch]

Bar Exam Snafu A Momentum-Killer For California Bar

(Image via Getty)

The State Bar of California’s recent inadvertent disclosure of the bar exam topics just days prior to the July test was a serious setback for an agency that has appeared headed in a positive direction on other fronts.

The exam blunder harkened back to prior years in which there was a new bar scandal popping up nearly every month, ranging from ignored unauthorized practice of law complaints to questionable spending decisions.

The California Supreme Court and the bar have vowed to investigate the premature release of the essay and performance test topics, though the snafu has already generated plenty of unflattering headlines and critiques of the agency’s competence.

A particularly unfortunate part of the timing for the bar is that the slip-up comes as the agency appears poised to secure legislative approval for its first annual fee hike in roughly two decades. The bill funding the bar next year will boost the overall fee for active lawyers to $544, a 27 percent increase from the $430 in place now.

Though the bar exam scandal is unlikely to derail the fee increase legislation, it certainly won’t boost lawmakers’ confidence in the oft-criticized agency.

Another more sanguine development the screw-up has overshadowed is the work of a bar task force crafting rules changes designed to spur innovation and bolster access to justice. Proposals under consideration include allowing non-lawyers to own legal services companies and undertake some legal tasks without committing the unauthorized practice of law.

The Task Force on Access Through Innovation of Legal Services will hold its next meeting on August 9 in San Francisco and host a public hearing the next day at the bar’s San Francisco office from 2 p.m. to 5 p.m.

Even the state auditor’s report on the State Bar this year was less critical than prior reports and noted some improvements being made, such as the development of performance measures.

State Bar Trustee Joanna Mendoza, who also serves on access the task force, said the bar has made great strides since she joined its board six years ago. One of the major changes Mendoza was a strong proponent of was the splitting off the bar’s specialty practice groups, known as sections, to become the California Lawyers Association.

She said the early release of the bar exam topics to some law school deans, which prompted the bar to disclose the topics to all test takers, should not minimize the agency’s improvements.

“After working so hard on these reforms, it is incredibly frustrating that all these improvements can be so easily ignored as the result of human error by a single employee,” Mendoza said. “While it was unfortunate that this occurred, some of the attacks against the State Bar as an entire agency based upon a premature email is completely unjustified.

“The investigation will confirm how it happened and help the agency determine how it can therefore be prevented in the future,” Mendoza continued.

The results from the investigation and the performance on the July bar exam will also likely go a long way toward determining the type of impact the State Bar’s major blunder will have on the agency’s reputation moving forward.


Lyle Moran is a freelance writer in San Diego who handles both journalism and content writing projects. He previously reported for the Los Angeles Daily Journal, San Diego Daily Transcript, Associated Press, and Lowell Sun. He can be reached at lmoransun@gmail.com and found on Twitter @lylemoran.