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| Sydney Sekeramayi |
CONFIDENTIAL
PTO7301
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HARARE 04999 081116Z
ACTION AF-00
INFO
LOG-00 NP-00 ACQ-00
CIAE-00 COME-00 INL-00
DODE-00
DOEE-00 DOTE-00 DS-00
EB-00 FAAE-00 FBIE-00
VC-00
TEDE-00 INR-00 VCE-00
AC-01 NSAE-00 OES-01
ACE-00
SSO-00 SS-00 TRSE-00
EPAE-00 DSCC-00 DRL-02
G-00
NFAT-00 SAS-00 /004W
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FM AMEMBASSY HARARE
TO SECSTATE WASHDC IMMEDIATE 7043
INFO NSC WASHDC IMMEDIATE
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
C O N F I D E N T I A L HARARE 004999
SIPDIS
STATE FOR AF, AF/S
NSC FOR SENIOR AFRICA DIRECTOR GAYLE SMITH
LONDON FOR CHARLES GURNEY
PARIS FOR BISA WILLIAMS
E.O. 12958: DECL: 09/08/05
SUBJECT: NEW TALE OF CORRUPTION IN ZIMBABWE'S
ENERGY
SECTOR
CLASSIFIED BY AMBASSADOR TOM MCDONALD, REASON 1.5
(B),
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HARARE 04999 081116Z
(D)
¶1. (C)
AMBASSADOR MCDONALD ATTENDED A DINNER SEPTEMBER
7 WITH A VARIETY OF RESIDENT AMBASSADORS AND A FEW
ZIMBABWEANS, DURING WHICH GIDEON GONO (PROTECT),
MANAGING DIRECTOR OF COMMERCIAL BANK OF ZIMBABWE
(CBZ),
REPORTED A CREDIBLE STORY ABOUT NEW GOVERNMENT
MALFEASANCE IN THE ENERGY SECTOR. BEFORE MUGABE
APPOINTED HIS NEW CABINET IN JULY, GONO HAD BEEN
THE
GOVERNMENT'S GO-TO MAN ON FINDING NEW SOURCES OF
FUNDING
FOR ZIMBABWE'S DWINDLING FUEL SUPPLIES. GONO, A ZANU-PF
STALWART AND FRIEND OF MUGABE, WAS THE PRINCIPAL
NEGOTIATOR OF A KUWAITI/EUROPEAN BANKS OIL CREDIT
LINE
EARLIER THIS YEAR DURING THE BEGINNING STAGES OF
THE
FUEL CRISIS.
CBZ IS ALSO OFTEN THE LAST RESORT BANK TO
WHICH THE GOVERNMENT TURNS WHEN A PARTICULARLY
ACUTE OR
ELEVENTH HOUR HARD CURRENCY PAYMENT MUST BE MADE.
¶2. (C) AN
IRRITATED GONO REPORTED, HOWEVER, THAT SINCE
THE CABINET RESHUFFLE HE HAS BEEN SIDELINED ON OIL
DEALS
IN FAVOR OF NEW MINES AND ENERGY MINISTER SIDNEY
SEKERAMAYI, HIS STAFF, AND OFFICIALS OF THE
ZIMBABWE OIL
PARASTATAL NOCZIM.
APPARENTLY OUT OF DESPERATION,
SEKERAMAYI RECENTLY CALLED GONO FOR HELP IN
RETAINING
AND TRYING TO EXPAND LINES OF CREDIT FROM SOUTH
AFRICA'S
ELECTRICITY AND OIL PARASTATALS. GONO INFORMED THE
AMBASSADOR AND A FEW OTHERS AT THE DINNER PARTY
THAT AS
A RESULT, HE TRAVELED TO SOUTH AFRICA IN THE LAST
WEEK
TO UNDERTAKE THESE CREDIT NEGOTIATIONS ON BEHALF OF
THE
ENERGY MINISTRY AND NOCZIM. WHILE THERE, GONO LEARNED
FROM ESKOM AND SASOL OFFICIALS THAT "MORE THAN
ONE
ZIMBABWE MINISTER AND A FEW OTHER NOTABLES FROM
NORTH OF
THE BORDER" (GONO DID NOT NAME NAMES, ALTHOUGH
PRESUMEDLY ONE IS SEKERAMAYI) HAD ALREADY SENT
LETTERS
TO ESKOM AND SASOL REQUESTING A CUT OF ALL NEW
ENERGY
DEALS BETWEEN SOUTH AFRICA AND ZIMBABWE BECAUSE
THEY
OPERATED PERSONAL BUSINESSES THAT COULD ACT AS
MIDDLEMEN.
GONO DID NOT PROVIDE ANY FURTHER DETAILS OF
THE REQUEST OR PRODUCE THE LETTERS. CHARITY NZENZA
(PROTECT), UNDERSECRETARY FOR THE MIDDLE EAST AND
ASIA
IN ZIMBABWE'S MFA, WAS AGHAST AT GONO'S DISCLOSURE
AND
LAMENTED THAT IT WAS OFFICIALS LIKE THOSE WHO
CAUSED HER
TO WAIT IN LONG PETROL QUEUES WITH OTHER AVERAGE
ZIMBABWEANS.
SHE SAID "WE ARE NOT STUPID; THE PUBLIC
KNOWS WHAT IS GOING ON."
¶3. (C)
COMMENT: GIVEN HIS HISTORY AS THE GOZ'S ENERGY
POINT MAN AND HIS VISIBLE DISPLEASURE AT BEING CUT
OUT
OF THE LOOP, GONO'S STORY APPEARS HIGHLY CREDIBLE
TO US.
THE TALE IS AN EXCELLENT EXAMPLE OF THE GOZ
LEADERSHIP'S
GROWING DETERMINATION TO GET WHILE THE GETTING IS
STILL
POSSIBLE. IF
THIS STORY EVER FINDS ITS WAY INTO THE
MEDIA, THE PUBLIC OUTCRY WOULD BE ENORMOUS, WITH
SEKERAMAYI COMING UNDER VERY STRONG PRESSURE TO
RESIGN.
WE ALSO STRONGLY BELIEVE THAT ANALAGOUS CASES OF
CORRUPTION AND PROFITEERING EXIST AT MANY OF THE
OTHER
PARASTATALS, WITH A NUMBER OF CABINET OFFICIALS,
TOP
RULING PARTY OFFICIALS, AND POLITICAL APPOINTEES ON
THE
TAKE AT PUBLIC EXPENSE.
MCDONALD
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HARARE 04999 081116Z
CONFIDENTIAL
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