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Abuja — Vice President Goodluck Jonathan yesterday assured Nigerians that President Umar Yar'Adua who is currently receiving treatment at the King Faisal Specialist Hospital and Research Centre, Jeddah, Saudi Arabia for a heart condition, is doing fine and responding well to treatment.

In a letter from the president's chief physician, Dr Salisu Banye, presidential spokesman, Segun Adeniyi, Thursday disclosed that Yar'Adua had been hospitalised for acute pericarditis, an inflammation of the membrane surrounding the heart which can restrict normal beating of the heart.

Jonathan who said he had been in touch with the president, since he left the country on Monday expressed Yar'Adua's appreciation to Nigerians in particular and the Muslim community in general for their consistent prayers for his wellbeing.

Receiving a Muslim delegation which visited him at his Akinola Aguda residence, State House Abuja, as part of the traditional Sallah homage usually paid to the president, Jonathan said those he described as "mischievous characters" have been spreading false rumours about the health of the president.

Jonathan said: "This morning, I personally conveyed Mr. President's personal greetings. We spoke yesterday and even this morning. After this, I will even speak with him again. He asked me to convey his personal greetings to all Nigerians.

"There are some rumours about some stories, but let me assure Nigerians that the president is okay. We spoke before he left this country and we have been speaking ever since.

"So, discountenance any form of false rumours being spread by mischievous characters in this country."

Jonathan said that the president is healthy and thanked the Islamic leaders for their prayers for the president.

He said further: "Today, we are reliving the sacrifice that Prophet Ibrahim made. It is a challenge to us all.

"It is an opportunity for us to call on all Nigerians to emulate our leader and what Prophet Ibrahim did because without that sacrifice, we would not have been here. Even as individuals from childhood to adulthood, you will be required to make sacrifices.

"We call on all Nigerians, especially those of us in government to reflect on this and to shun temptations just like Prophet Ibrahim and his kinsmen did. This special ceremony reflects what happened in those days."

Led by the Secretary to the Government of the Fede-ration, Mallam Yayale Ahmed, the delegation included the Chief Justice of the Federation, Justice Idris Kutigi; Chief of Army Staff, Lt. Gen. Abdulrahaman Dam-bazau; Interior Minister, Dr. Shetima Mustapha; and Deputy Imam of the Abuja Central Mosque, Abdulsalam Mohammed who offered the prayers, amongst others.

Following severe pain felt around the left side of his chest region last week Friday, the president departed the country for Saudi Arabia on Monday, where he was ostensibly reported to have gone for a medical check up and to perform the Hajj.

His departure, however, fuelled speculation over the real nature of his ailment, which only got worse by Wednesday when rumours circulated that he had either slipped into a coma or died.

In order to dispel the rumours, the presidency, Thursday took the unprecedented step of disclosing the real nature of the president's ailment.

In his letter, Dr Banye, the president's chief physician said the president was responding positively to treatment at the King Faisal Specialist Hospital.

He added that the president is expected to recover soon and return to the country, but no specific day has been fixed.

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NAIROBI, Nov. 28 (Xinhua) -- Equatorial Guinea will hold its presidential elections on Nov. 29, which will pit the long-time President Teodoro Obiang Nguema against opposition leader Placido Mico Abogo.

The following are basic facts about the Republic of Equatorial Guinea.

Equatorial Guinea lies in West Africa, bordering Cameroon in the north and Gabon in the east and south. With an area of 28,051 sq km and a population of about 1,000,000, the country is composed of the continental enclaves of Rio Muni and several inhabited islands in the Gulf of Guinea. The capital city is Malabo in the Bioko Island.

The country, a former Spanish colony, gained independence on Oct. 12, 1968 after 190 years of Spanish rule.

Official languages of the country are Spanish and French, with Spanish the predominant. Major local languages include Fang and Bube.

Equatorial Guinea has seen rapid economic growth due to the discovery of large offshore oil reserves in the 1990s, and in the last decade it has ranked as Sub-Saharan Africa's third largest oil producer after Nigeria and Angola.

Other natural resources of the country include natural gas, timber, gold, bauxite, diamond, tantalum and clay.

WINDHOEK, Nov. 28 (Xinhua) -- Polling stations in Namibia reopened Saturday for the country's second day of voting in general elections.

The polling stations reopened at 7 a.m. local time and long queues were seen in some polling stations in the capital.

In the general elections, each voter gets two ballots, one for picking up a candidate for presidency and the other for choosing a party for parliament.

A total of 14 political parties are competing for the fifth post-independence presidential and parliamentary elections in the country.

Seen as the favorite to retain power by many political pundits and observers, the South Africa People's Organization (Swapo) will cross swords with its political rivals such as the Rally for Democracy and Progress (RDP), the Democratic Turnhalle Alliance (DTA), the Congress of Democrats (CoD), All People's Party (APP) and the National Democratic Unity Organization (NUDO).

Other contestants are the Republican Party (RP), the Communist Party and Monitor Action Group (MAG).

As a political party and former liberation movement in Namibia, Swapo has been the ruling party in Namibia since independence in 1990.

The party garnered 75 percent of popular votes and 55 out of78 seats in the parliamentary election in 2004.

Namibia borders with Angola and Zambia to the north, Botswana and Zimbabwe to the east, and South Africa to the south and east. It is the second least densely populated country in the world, after Mongolia.

HARARE, Nov. 28 (Xinhua) -- The Zimbabwean and South African governments have signed the much-awaited Bilateral Investment Promotion and Protection Agreement (BIPPA) that is set to unlock investment inflows into both countries.

Economic Planning and Investment Promotion Minister Elton Mangoma signed the agreement on Friday on behalf of Zimbabwe while South Africa's Trade and Industry Minister Dr Rob Davies signed on behalf of his country, according to Saturday's The Herald.

The agreement, which comes after almost five years of negotiations, will now be presented to the parliaments of both countries for ratification before it comes into force.

There have been some attempts by a group of some South African farmers, who have wanted to secure an order to have the signing deferred on the basis that the agreement should include issues on security of tenure on land.

However, Dr Davies said the issue had been settled out of court after it was discovered that there was no basis for applying for such an order and that the benefits of signing the BIPPA to most of the South African businesses far outweighed the interest of the minority business grouping.

Speaking soon after the signing ceremony, Zimbabwe Minister Mangoma paid tribute to all the people who had worked to ensure that the agreement was signed.

Minister Mangoma said the focus is now on increasing trade volumes with South Africa to the levels of 10 years ago as well also king at new ways of doing business.

He said that although South Africa and Zimbabwe signed the BIPPA, the implications of the event are far-reaching and extended beyond the border of the two countries.

Dr Davies said South Africa is committed to seeing the implementation of the Global Political Agreement (GPA) and that the signing of the BIPPA is one of the ways in which his country is working to ensure economic recovery in Zimbabwe as spelt out in the GPA.

The estimated value of South African businesses operating in Zimbabwe in 2003 was 619 million U.S. dollars while that of Zimbabwean businesses operating in South Africa was 154 million U.S. dollars.

He said South Africa is also eager to see Zimbabwe's economy ticking again as the influx of refugees from the region, including Zimbabwe, was putting pressure in their job market where menial jobs are scarce, and South African employers are electing to employ foreigners ahead of locals.

NAIROBI, Nov. 28 (Xinhua) -- The regional trading bloc East Africa Community (EAC) has called for intensified efforts to fight corruption in the partner states.

EAC Deputy Secretary General in charge of Political Federation Beatrice Kiraso said the recently signed Common Market Protocol will heighten regional socioeconomic activities and stress ethics and integrity in order to achieve the set objectives.

"This stage (Common Market) is the backbone of our integration as it will facilitate free movement of persons, goods, services, capital as well as the rights of residence and establishment," Kiraso said in a statement on Saturday.

"It is a requirement, therefore, to establish regional institutional framework to deal with the challenges of these freedoms and increase economic activity," she told the meeting of the partner states' Heads of Anti-Corruption, Ethics and Integrity authorities.

Anti-corruption, ethics and integrity are among the four pillars of the EAC Good Governance Framework which is one of the initiatives to lay a firm foundation for the EAC Political Federation.

Corruption, she noted, has negative impact on all aspects of integration as it impedes investments, trade, movement of capital and persons. "It is directly related to poor service delivery and no doubt enhances poverty levels in our region," she added.

Kiraso urged the authorities to consolidate the national efforts on the fight against corruption and promotion of good governance "to create an environment that is attractive to foreign and regional investors so as to bolster the benefits of integration."

The EAC fundamental principles stipulated in Article 6(d) of the Treaty include good governance, adherence to the principles of democracy, the rule of law, accountability, transparency, social justice, equal opportunities, gender equality, as well as the recognition, promotion and protection of human and peoples' rights in accordance with the provisions of the African Charter on Human and Peoples' Rights.

The draft protocol has had the input of experts and different stakeholders at partner states level and this meeting will seek the endorsement of the heads of Anti-corruption agencies and integrity centers from all the five partner states, namely Kenya, Tanzania, Uganda, Rwanda and Burundi.

This, and other on-going initiatives, will further be discussed at the forthcoming conference on Good Governance which follows the first one that was held in Dar es Salaam, Tanzania, in January this year.

"The good governance will be an annual event which will provide an opportunity to different players under the four pillars of the Good Governance framework to take stock of the successes and challenges in their sectors. Addressing good governance issues is part of the process of political integration," Kiraso said.

LUSAKA, Nov. 28 (Xinhua) -- Zambia has launched a think-tank whose functions would be to meet the needs for capacity building in the country's economic policy formulation, monitoring, research and analysis, the Zambia Daily Mail reported on Saturday.

Zambian minister of Finance and National Planning Situmbeko Musokotwane, who launched the Zambia Institute for Policy Analysis and Research (ZIPAR) on Friday, said the organization is formed as a result of little and sometimes incoherent contribution from professionals and academicians to the country's development.

The country's economic development policy formulation and research has mainly been carried out by government ministries and agencies, Daily Mail said.

"This government is committed to promoting a paradigm shift. we seek change in the way we do business. We recognize the need to embrace new ideas," Musokotwane was quoted as saying by the paper.

According to the Zambian Minister, it is Zambian government's desire to receive non-partisan professional advice in matters relating to the economic management of the country's resources.

the minister said that ZIPAR will create a forum where professionals could meet to dialogue and influence the development agenda of the country.

Musokotwane further said the desire of the government is to make economic policy management an inclusive process and that a semi-autonomous think-tank is well poised to provide evidence-based policy advice and undertake consultancy services to the public and private sector.

ZIPAR has been established by the Zambian government and the African Capacity Building Foundation (ACBF), Daily Mail said.

LOME, Nov. 28 (Xinhua) -- The Togolese authorities are concerned about social peace after the opposition called for a protest on Saturday to demand for a return to a two round mode of election during the 2010 general election, an official communique noted on Friday.

Measures have been taken "to apprehend any misconduct and trouble makers," indicated a communique signed by the minister for Security and Protection of Civilians, Colonel Atcha Titikpina and the minister for Provincial administration, Pascal Bodjona.

The communique mentioned that there was a meeting held on Friday between the two ministers and the Togolese opposition officials who have organised the Saturday march which is said to be peaceful before ending with a rally.

The two ministers informed these political officials of the possibility of opposition members of Parliament causing trouble.

The organisers were warned that deputies of these parties were planning to orchestrate trouble during the protests.

The protest was called by the Togolese principle opposition party United Forces for Change (UFC) to demand that the authorities return to a two round mode of election during the 2010general election. It was joined by another opposition the Action committee for Renewal (CAR) and three other political parties.

UFC and CAR which constitute the parliamentary opposition, have threatened not to take part in the February 2010 election if the one round mode of election which was adopted in 2003 and 2005 is maintained.

UFC and CAR are the only opposition parties with representation in Parliament with each respectively having 27 and four deputies against the 50 for the Assembly of Togolese People (RPT) which is the ruling party.?

LOME, Nov. 28 (Xinhua) -- The Togolese opposition parties, the United Forces for Change (UFC) and the Action committee for Renewal (CAR) among others, will organize a peaceful march on Saturday in Lome to demand a return to a two-round mode of election during the 2010 general election.

According to a press statement published on Friday and signed by Minister for Security and Protection of civilians Colonel Atcha Titikpina and Minister for Provincial Administration Pascal Bodjona, measures have been taken "to apprehend any misconduct and trouble makers."

The two ministers had a meeting with the Togolese opposition officials on Friday to discuss the Saturday protest.

The UFC and CAR, the only Togolese parliamentary opposition parties, have threatened to boycott the February 2010 general election if the one-round mode of election is maintains.

The two parties have respectively 27 and 4 members in parliament against the 50 for the Assembly of Togolese People, the ruling party of the country.

ANTANANARIVO, Nov. 28 (Xinhua) -- Madagascar's meteorological department has predicted that there will be four to five cyclones that will be violently passing around Madagascar during the cyclonic period between October and March, threatening 600,000 people, Malagasy newspaper L'Express reported on Friday.

Worried about these threats, the United Nations agencies launched on Thursday an urgent appeal for six million U.S. dollars in order to stock the supplies.

According to the interim resident coordinator for the United Nations system in Madagascar, Christopher Peter Metcalf, the urgently required materials include tents, medical equipment, water purifiers, school kits and recreation kits.

He said that resource mobilisation and their supply to the zones that are at risk should be urgent and without delay in order to alleviate the eventual impacts of the cyclones on the local populations.

On average, three or four cyclones per year are witnessed in Madagascar.

During the last cyclonic period, five cyclones were witnessed in this island nation, affecting 463,000 people and leaving 190,000 people homeless. The strong winds destroyed 2,276 classrooms and 180,000 hectares of agricultural fields.

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HARARE (Reuters) - Zimbabwe signed an investment protection agreement with neighbouring South Africa on Friday in a bid to draw funding to fix its battered economy, but doubts remain over the security of foreign-owned assets.

The Bilateral Investment Promotion and Protection (BIPPA) treaty took five years to hammer out, but Zimbabwe's new unity government pushed for the pact with the continent's economic powerhouse as part of efforts to raise over $10 billion required to rebuild its economy.

President Robert Mugabe and long-time rival Morgan Tsvangirai, now prime minister, set up a power-sharing government in February following last year's failed elections.

South African trade minister Rob Davies and Zimbabwe's economic planning minister, Elton Mangoma, signed the deal at a ceremony in Harare attended by businessmen and government officials from both countries.

"This BIPPA is signifying to the world that Zimbabwe is open and ready for trade and investment," Mangoma said.

"There have been arguments that Zimbabwe cannot be trusted because it cannot even sign an agreement with its neighbour, a regional powerhouse. That argument falls away."

Among other things, the agreement protects investments from expropriation and provides the opportunity for aggrieved investors to seek redress in international courts.

It does not include farms seized from South African citizens under Mugabe's land reforms.

Davies said South Africa had secured a deal with South African farmers' unions opposed to a treaty that excluded land investments. The farmers had sought a court order blocking the signing of the pact.

"Everybody now seems to appreciate that this is a positive agreement which provides a level of investor confidence that did not exist before. There will be recourse to a whole range of mechanisms in the event of a dispute," Davies said.

Zimbabwe has rattled foreign investors with its seizure of white-owned farms to resettle landless blacks and, latterly, with the enactment of a law seeking to transfer control of foreign-owned firms to local blacks.

But Mangoma reiterated the government would not nationalise foreign assets.

"We will not nationalise anybody's business, that's why we are signing this BIPPA," he said. "We are departing from the past and do not want to be judged by what previous governments have done."

Davies said Zimbabwe was South Africa's third largest trading partner in Africa, with trade of 21 billion rand in 2008.

South African firms dominate Zimbabwe's mining industry, with the world's top two platinum miners -- Anglo Platinum and Impala Platinum -- operating in the country. South Africa's Metallon also controls Zimbabwe's largest gold-mining firm.

With Davies were Dan Simelane, head of African Rainbow Minerals' (ARM) exploration unit, and Nonkululeko Nyembezi-Heita, chief executive of Arcelor Mittal South Africa.

Arcelor Mittal SA is one of two foreign firms being considered by Harare to take over Ziscosteel, a state-run firm with potential to produce 1 million tonnes of steel per year.

ARM is eyeing the coal and platinum sectors.

"As a potential investor in Zimbabwe, we're always on the look-out for developments here, but I must say today is a big step forward in terms of raising investor confidence," Nyembezi-Heita told Reuters.

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LUANDA (Reuters) - Angola will carry out a rare investigation into the illegal transfer of government funds abroad and will name any Treasury and Finance Ministry officials who face charges as a result, a prosecutor said on Friday.

The deputy chief prosecutor, Domingos Baxe, said details of sums illegally transferred abroad would be made public and the attorney general could press charges against those suspected of responsibility for "illicit and fraudulent acts".

The aim was to complete the probe in 45 days, Bax said. "We want this process to end as soon as possible so that citizens can be informed about the investigation," the state-owned news agency Angop's website www.angop.ao quoted him as saying.

It is very rare for government officials to be prosecuted for corruption in Angola, which was ranked among the 18 most graft-ridden countries in the world in the 2009 index of the global corruption watchdog Transparency International.

Analysts praised the investigation as a step forward in the oil-producing southern African country's struggle to end what they say is its biggest challenge since the end of the three-decade civil war in 2002.

"This is not the first time the prosecutor has investigated corruption. The problem is most of these investigations that involve government figures never go anywhere," said Fernando Macedo, a law professor at Lusiada University in Luanda.

"We hope that this time those responsible will be brought to justice."

The attorney general's office said on Monday that Treasury and Finance Ministry officials had illegally transferred funds abroad, but gave no details.

27 November 2009

Johannesburg — IN A move that eases Eskom's financial woes, the African Development Bank yesterday announced that it had approved a R20bn (€1.86 billion) loan for the utility to finance the Medupi power station in Lephalale, Limpopo.

Finding money for its R385bn capital expansion programme is Eskom's single biggest problem as it races against time to bring on line additional electricity capacity. But the global slowdown and the resultant unfavourable lending conditions have frustrated Eskom's ambitions.

This prompted the utility to look to development financiers such as the World Bank and African Development Bank for funds. The export credit agencies are another important source of funding for the power supplier.

Uncertainty over the source of funding for its expansion programme has forced Eskom to put on hold placement of new contracts at the utility's Kusile coal- fired power plant in Emalahleni, Mpumalanga.

African Development Bank president Donald Kaberuka yesterday said: "SA's energy problem has been a major impediment to Africa's leading economy.

"The bank is pleased to be associated with this project. We look forward to working with SA towards achieving energy security. This operation should be seen in the context of the b ank's ongoing efforts to help Africa bridge the infrastructure gap."

The loan confirmation comes days after Eskom concluded a contract worth more than €100m with a French energy multinational to provide the instrumentation and control system for the Medupi power station.

This is the second multi billion- rand loan Eskom has secured from the African Development Bank within a year.

In November last year, the utility and the bank signed a 20- year R5bn loan to fund a capital expansion programme.

Eskom will know early next year if the World Bank has approved a loan of up to 5bn, the bank said this week.

The loan is for the Medupi power station and renewable energy and low-carbon energy efficiency programmes.

In a project fact sheet, the World Bank said 3bn of the loan would be spent on the 4800MW Medupi power station, while 260m would go towards wind and concentrated solar power projects. The bank said 490m would fund initiatives to reduce carbon dioxide emissions .

Medupi power station is due for commissioning by 2012, while the first unit of Kusile is expected to come on stream in 2013.

Eskom's funding plans have come under the spotlight after it applied for a 45% tariff increase in each of the next three financial years. The utility is expected to submit its final tariff application by Monday.

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27 November 2009

Johannesburg — THE prices of available airline tickets for flights to SA during next year's World Cup have spiked in recent weeks as travellers scramble to secure a seat.

Many airlines are either holding back seats until the World Cup schedule is finalised on December 4 or are already close to being sold out, leading to a surge in prices.

However, the spike is likely to be short-lived as airlines will release extra seats after the draw in Cape Town. The draw will determine when and where each team will play, allowing airlines to finalise their World Cup plans.

Sue Botes, commercial manager of British Airways in SA, said many flights, particularly near the start and end of the tournament, were sold out and only seats in the higher category were available.

" The highest rate BA will charge for any economy seat is £3449, our full economy fare . We opened all our flights after England qualified ... and will only decide how much extra capacity, if any, we will add over the World Cup after the draw ."

Vimla Maistry, South African Airways (SAA) spokeswoman said yesterday the airline had so far only made a small percentage of World Cup seats available and would supply the rest as soon as the draw was completed .

"At the same time SAA will be able to identify demand and will utilise the venue information to optimise its flight schedules and offer customers the best travel options during the World Cup."

Maistry said seats currently available for booking were in the highest inventory classes, with the best fares already sold out.

SAA plans to run a 24-hour operation during the World Cup, increasing the utilisation of its aircraft fleet to accommodate the different match times on each day and the constant flow of passengers expected as a result.

The airline is also in talks with its Star Alliance partners to provide aircraft . Lufthansa and Swissair have confirmed they are willing to make their long-haul aircraf, usually standing idle during the day at OR Tambo International Airport, available to SAA for use on domestic routes.

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27 November 2009

Johannesburg — A RULING in the North Gauteng High Court yesterday paved the way for the signing today of a historic bilateral investment protection treaty between Zimbabwe and SA.

The ruling, which confirmed a settlement reached between the Department of Trade and Industry and farmer Louis Fick, binds SA's government to honouring the terms of a landmark property rights ruling by the Southern African Development Community (Sadc) Tribunal.

A controversial clause in the bilateral agreement, whose text has been kept tightly under wraps, excluded historical claims arising from Zimbabwe's controversial land reforms, Trade and Industry Minister Rob Davies confirmed this month. Tenure rights of all existing and future investments would be secured.

Business Unity SA (Busa) said yesterday it would not participate in today's signing ceremony in Harare because there had been no formal consultation on the treaty between organised business and SA's government.

Secrecy surrounding the agreement created uncertainties "that are particularly worr isome for the business community", Busa said.

"For such a treaty to act as a catalyst for increased levels of investment, the private sector needs to be comfortable with all aspects of the text."

Busa would assess implications for South African investors once the text became publicly available.

Lobby group AfriForum brought an urgent application on Fick's behalf to interdict today's signing ceremony, arguing that the exclusion clause would in effect legalise past land grabs and supercede the Sadc Tribunal ruling.

In a unanimous decision confirmed in June, the Sadc Tribunal ruled that Zimbabwe's 2005 constitutional amendment that allowed the state to seize land from white farmers without compensation violated international law.

The government was ordered to pay fair compensation to farmers already evicted, and to protect property rights of those still on their farms.

Zimbabwe does not recognise the decision.

Yesterday's ruling means that the bilateral treaty signed today cannot prevent South African farmers in Zimbabwe from seeking relief from international courts for past illegal land acquisitions, as was initially feared.

In the ruling, SA's government gave South African citizens the assurance that the bilateral treaty "does not affect existing rights or remedies in terms of other sources of international law".

"The (South African) government respects and undertakes to honour (the tribunal's decision) in terms of its own obligations in terms of the Sadc Treaty," the ruling said.

"We are very pleased with this win-win result," said AfriForum's Willie Spies.

"We have spared the South African government the embarrassment of not being able to sign the treaty, and won a victory for the rule of law."

Fick, a South African citizen farming near Chinhoyi in eastern Zimbabwe who was a co- applicant to the Sadc Tribunal case, faces up to two years in jail for defying an order to vacate his farm. "This is a big step forward in getting our rights protected in Zimbabwe," he said outside the courtroom yesterday.

"For nine years we've been trying to get the (South African) government to step up to the plate. The land grabs never stopped in Zimbabwe, but now we will engage our embassy to step in and protect our rights."

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27 November 2009

Cape Town — Defence Minister Lindiwe Sisulu has taken a swipe at her successor in human settlements, Tokyo Sexwale, over the value of theatre productions as a way of communicating with stakeholders, accusing him of not having launched a single new housing project since his appointment earlier this year.

The spat came after it emerged from a written reply by Sexwale to a parliamentary question by Democratic Alliance MP Butch Steyn that the Department of Human Settlements under Sisulu had spent R22m on a theatre production to promote awareness of housing issues.

Steyn likened this to the controversial AIDs play Sarafina II, funded to the tune of R14m by the Department of Health in the 1990s.

Sexwale's reply was followed by a radio comment that he had no time "for plays and theatre that have nothing to do with the building of houses". His spokesman, Chris Vick, said Sexwale put a stop to the play as soon as he heard about it in June and had also imposed a severe clampdown on unnecessary expenditure on corporate gifts, advertising, marketing, travel and accommodation.

Sexwale's comments prompted cutting remarks from Sisulu's spokesman, Ndivhuwo Mabaya, who said that "since his appointment, the minister has not launched a single project and we have not seen his plan for human settlements, which differs from the one approved and launched in 2004".

He said: "We are convinced that when the minister starts building houses or finalising his priorities he will realise that community participation and consumer education is central to housing delivery."

Sisulu also made cutting remarks about Sexwale's statement that 40000 poorly built houses would have to be demolished at a cost of more than R1,3bn, noting that this programme was initiated by the housing ministers and members of executive councils meeting in 2005 while she was housing minister.

"It is necessary to encourage the honourable minister of human settlements to spend some time in the office reading reports and Cabinet memos from 2004. These reports will help him to discover that a new concept of human settlement was approved by Cabinet in September 2004," said Mabaya.


"He will also discover that when you implement a new plan and a housing project, you need to communicate with all stakeholders. Beneficiaries of government housing programmes must be educated on their responsibilities, how they can economically benefit from the project, how to report fraud and corruption and how to ensure that contractors do not take advantage of them. This two-way communication can be done using many methods, including the theatre play."

Mabaya contested the R22m price tag for the theatre production, saying it had cost only R5,5m, with the balance being spent on other elements of the multimedia awareness campaign.

In any event, Mabaya said, it was not the responsibility of a minister to implement communication campaigns and approve the budgets for them. "To call on the former minister of housing to explain the costs and the play is sensational and politicking that is not necessary."

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27 November 2009

Windhoek — THE biggest challenge thousands of Namibians face today and tomorrow as they cast their votes in the fourth presidential and parliamentary elections is to what extent they will succeed in deepening the country's democracy, the group economics think tank of Standard Bank said yesterday.

"Although the ruling party is expected to retain its majority, gains by opposition and other smaller parties - if accomplished - should be welcomed as part of the necessary but protracted democratic maturation process," economist Jan Duvenhage said in the group's report on the election, released in South Africa.

Internationally, Namibia is already classified as a "flawed democracy" and "any additional slippage in the global democracy stakes will be a cause for concern", he said.

Swapo's overwhelming majority in Parliament after Independence "may be perceived as a constraint on further democratisation, as liberation movements generally tend to feel entitled to remain in power and resent the interference of other parties", he said.

Duvenhage referred to Namibia's ranking of 64th out of 167 countries on the latest Democracy Index of the Economist Intelligence Unit (EIU).

Namibia got an overall score of 6.48 out of a possible ten points, making it a flawed democracy. A score below six means that a country is a hybrid regime.

"Democratic deepening may result if opposition and smaller parties make gains in the forthcoming election, resulting in a greater balance of power," Duvenhage said.

Namibia has been slipping on the EIU Democracy Index since 2006, when it held the 59th spot.

Its weaker performance was mainly because of its poor score for 'Electoral process and pluralism', which got 5.25 points. Factors the EIU considers when scoring this pillar include whether elections are free and fair, whether political party funding is transparent, and whether citizens are free to form political organisations free of state interference and surveillance.

Namibia fared only slightly better in the category, 'Functioning of Government', scoring 5.36. Here the EIU looked at, amongst others, the people's confidence in government, corruption and accountability.

Duvenhage pointed out that Namibia's biggest drop since 2006 was recorded in the category for 'Political culture'. The country scored a much lower 6.88 points last year, which "could be interpreted as a growing lack of confidence in democratic values and institutions", he said.

"Opposition parties have ample ammunition to criticise the ruling party, as Namibia is facing a number of socio-economic challenges," Duvenhage said, referring the very high income inequality, unemployment and poverty.

Namibia is also perceived to be "highly corrupt", he said, referring to the latest Corruption Perceptions Index.

"A greater balance of power may help to reduce the incidence of corruption," Duvenhage said.

Corruption is often associated with neopatrimonialism, "which refers to personalised patterns of authority where bureaucrats strive to maximise their personal power and control", he said.

Neopatrimonialism is often a potential problem associated with countries where resources are abundant, like Namibia, he said.

"Neopatrimonial governments do not act in the public interest, but in their own interest. The corrupt elites operate within the state and control the disbursement and allocation of wealth, often based on the exploitation of natural resources," Duvenhage said.

Swapo is expected to remain in power, but it is not certain that the party will keep its two-thirds majority, he said.

The breakaway parties, he added, "may make some inroads and dent the ruling party's hegemony, as there appears to be some discontent within the ruling party".

However, new opposition parties, like those formed in South Africa and Botswana, did poorly in recent elections despite strong initial support.

"It is therefore possible that a similar pattern may emerge in Namibia, thus inhibiting or delaying further democratic deepening," he said.

Duvenhage said Swapo is not expected to depart from the economic plan spelled out in Vision 2030, which includes a diversified and open-market economy, with a resource-based industrial sector and commercial architecture, as well as a competitive export sector.

"However, it appears that there are elements in the ruling party who would like to see more radical policies adopted. The more left-wing party members, who are said to be linked to the former President Sam Nujoma, appear to support faster black economic empowerment and quicker land reform," he said.

Namibia's pressing socio-economic problems will "demand the immediate attention of the government", Duvenhage stressed.

allafrica

27 November 2009

Windhoek — Polling stations around the country are ready for today and tomorrow's presidential and National Assembly elections. Yesterday, the polling station at

ONE of Namibia's biggest logistical operations gets into full swing this morning when over one million voters are expected to stream to polling stations to elect the country's President and National Assembly members.

"It's all systems go. The hour has arrived and we are ready," said Rukee Tjingaete, spokesperson of the Electoral Commission of Namibia.

"Come rain or shine", 3 259 polling stations are expected to open their doors at 07h00 to this morning. Of the above, 997 polling stations are fixed and the remainder will move around.

"The country is just too big. Some of the farms, especially commercial farms, have less than 10 voters but we must cover every vote," Tjingaete said.

About 10 800 polling officers have been divided into 1 553 teams which include a driver and a Police officer.

He said helicopters and four-wheel-drive vehicles had been put on standby in case of rain in remote regions such as Kunene, Kavango and the Caprivi.

While the key areas for this election will be the most populous regions such as Ohangwena (over 126 000 registered voters), Omusati (114 600 voters), Oshikoto (93 600 voters) and Oshana (104 000 voters), tough battles are expected in the Kavango (118 800), Caprivi (34 000), Otjozondjupa (82 700), Omaheke (44 000) and Kunene (47 000) regions.

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27 November 2009

In yet another clear indication of why MPs should not be entrusted with too much power over economic policies, parliament on Wednesday passed a Bill seeking to reinstate price controls in certain segments of the economy.

The crux of their argument is that the prices of commodities for which they seek control have appreciated at too fast a pace taking them beyond the reach of millions of Kenyans.

That prices of essential commodities stand beyond the reach of many is a fact beyond reproach. What the politicians have missed is a proper diagnosis of the problem.

In passing the Price Control Bill 2009, the MPs have stated as their targets the cost of essential commodities such as maize, cooking fat, sugar, paraffin, diesel and petrol -- undeniably key items in every household's consumption basket.

Yet an informed look at the realities of Kenyan consumer goods market should restrain anyone from rushing for quick fix solutions such as price controls.

It may sound politically right to cap prices in the marketplace but supporters of this move should be forewarned that the consequences will be swift and dire.

Take the petroleum products for instance. It cannot be imagined that the MPs do not understand that the main driver of prices in this market is global and supply dynamics that are beyond the reach of any local instrument of control.

What is also very clear is the price that the very ordinary Kenyans will pay in a controlled market.

Investments in the oil sector will dwindle, hoarding will become the common mode of operation among traders, causing serious shortages that will only slow down the pace of activity in the economy.

Similar dynamics drive pricing in the cereals, and sugar markets. A casual look at the cereals market indicates that supply shortage is the single biggest driver of prices making it fluctuate with seasons.

In the past the price of a 90kg bag of maize has dropped to as low as Sh900 during harvests in the grain basket region of the North Rift and peaked at more than Sh2,500 with prolonged drought and the accompanying shortages.

One also needs to look at the population and agricultural output dynamics to identify the main drivers of pricing in the segment.

Interim census results show that Kenya has been adding a million new mouths to feed every year. That means that since 2002, when the maize flour price was price at Sh34 per two-kilogramme packet, there are six million more people to feed.

But agricultural output has been growing slower. It should also be of concern to the MPs as to whether price controls project is in tune with the country's long term development goals and compliant with the provisions of supra-national commitments such as membership in the planned EAC common market.

These realities only point to the fact that answers to Kenya's commodity pricing crisis lie in fixing the supply side.

Though oil remains a commodity whose pricing will in the near future largely depend on global demand and supply, it has become clear that increasing the country's processing and storage capacity alone could help shield consumers from frequent price fluctuations. Some effort has gone in doing that.

For the cereals market, it would be prudent for the MPs to enact legislation that will ensure that the government invest big time in farming by for instance cutting to size the huge allocations that Treasury makes to security services every year and channelling it to the productive sectors of the economy.

Backing such reforms with the management of competition to increase market efficiency is what will deliver affordable prices.

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27 November 2009

Kampala — Failure by African Union officials to account for millions of dollars for Somalia operations has dried up payments for the 4,500 peace-keeping troops after upset donors abruptly halted disbursements.

A top diplomat says this could affect the morale of the soldiers to tackle threats from radical Al Shabab militants bidding to topple Sheik Sharif's beleaguered Federal Transitional Government.

Ambassador Nicholas Bwakira, AU's special representative to Somalia, told the Voice of America in an interview published yesterday, that Ugandan and Burundian troops in the restive Mogadishu were last given allowances in May.

"This has a very bad impact on the morale of the troops and that of the government concerned," the envoy said, citing already 80 deaths of AU troops, as further disincentive.

Uganda has lost 37 troops in Somalia while Burundi, the other only troop-contributing African country, has had 43 of its soldiers felled, mainly in roadside bomb explosions.

With each soldier on duty in Mogadishu budgeted to earn an average $550 (about Shs1 million) each month, the arrears due to the 3,000 UPDF soldiers alone over the months, the seventh being the ending November, thus add to some $11.6 million (Shs21.6 billion).

Yesterday, Defence Spokesman Felix Kulayigye, said the ministry has been "engaging" officials at the AU headquarters over the financial blues, but the outstanding arrears for the peacekeepers is for four months.

"We are confident the matter will be sorted out sooner rather than later," he said, adding, "Our troops know that they are not in Mogadishu for money. They have a mission to accomplish and are doing their work very well."

He said soldiers deployed on the Somalia mission are having their monthly pay from the army here wired to their accounts regularly.

The bad news is that AU is broke and incoming international financing, including under the $295 million (Shs551 billion) pledged at the April donor's conference in Brussels, is but just a trickle.

For instance, the Somali government has thus far got three million dollars of the pledged funds, with the US offering $2 million and the Arab League $1 million.

The Somali Treasury Minister Abdirahman Omar Osman, who spoke to the Voice of America, worried about a bleak future for his government that is now stuck with a programme to train 10,000 Police as well as 5,000 soldiers.

"Most of the regions in [Somalia] are now controlled by al-Shabab that has links with Al-Qaeda," Mr Osman said.

"So, if this continues, what will happen is [that] the Al-Shabab will become the next government and we will see the next Afghanistan in Somalia and that is what we don't want."

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27 November 2009

Nairobi — The country will take over two months to plug the wheat deficit created after two vessels with 75,000 tonnes were hijacked by pirates early this month, millers said on Friday.

Negotiations for the release of the vessels is going on between the ship owners and pirates but the sum they are asking is "colossal", said Cereal Millers Association spokesman Munir Thabit.

MV AL Khaleeg and MV Delvina were hijacked in late October and early November respectively each carrying 35,000 tonnes of wheat for local and Uganda millers.

"It is expected the figure will go down but this will take three to four months based on the previous pattern," Mr Munir, also the financial director at Mombasa Maize Millers said, without disclosing the figure for fear of compromising the ongoing negotiations.

Two more wheat vessels arrived at the port this week with about 75,000 tonnes, which is a major relief for millers who were afraid of closing down their plants, Munir said. Fountain v and Go Star brought in 38,000 and 37,300 tonnes of wheat respectively.

"The new arrivals are a relief but since the wheat being held is part of the planned arrivals, it will take us some time before we resume normal operations as it takes over two months to order and bring fresh grains in the country," Munir added.

The cost of insurance has also gone up by huge margins. Pirates have become sophisticated lately and are able to attack vessels at a wider range and as far away as Seychelles. Therefore, the use of the longer Cape of Good Hope route in South Africa is no longer effective.

The failed arrivals affected wheat flour production by 30 percent according to the affected millers.

To avoid plunging the country into a food crisis due to piracy, millers have proposed the establishment of buffer stocks near the port with a consortium of investors having already presented their proposal to the government according to Mr Munir.

This will allow the vessels to offload the grains directly to the silos for storage purposes at a lower cost.

The proposal is expected to spark an already raging and unresolved controversy between Grain Bulk Handlers Limited who enjoy a grain handling monopoly and the new investors who will be seeking a leeway from Kenya Ports Authority to construct a conveyor belt from the port.

Although GBHL has storage silos with a capacity to handle 135,000 tonnes of grains, it cannot be used for long term storage since it operates as a discharge terminal for many users.

Millers, according to Munir, are lobbying for the need to create a buffer stock to last the country for at least three to four months.

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