Zimbabwe was savaged by greedy and ruthless Zanu PF politicians

 

Sydney Sekeramayi

CONFIDENTIAL     PTO7301

PAGE 01        HARARE  04999  081116Z

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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),

                       CONFIDENTIAL

PAGE 02        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

                       CONFIDENTIAL

PAGE 04        HARARE  04999  081116Z

                       CONFIDENTIAL

Gideon Gono: Mining sector corruption "out of this world"

 
Gideon Gono

S E C R E T SECTION 01 OF 04 HARARE 000178 
 
SIPDIS 
 
SIPDIS 
 
AF/S FOR B. NEULING 
NSC FOR SENIOR AFRICA DIRECTOR C. COURVILLE 
AFR/SA FOR E. LOKEN 
COMMERCE FOR BECKY ERKUL 
 
E.O. 12958: DECL: 12/31/2011 
SUBJECT: GONO ON POLICY FRUSTRATIONS, SUCCESSION TENSIONS, 
COLLAPSE 
 
REF: (A) HARARE 127 (B) HARARE 98 
 
Classified By: Ambassador Christopher Dell under Section 1.4 b/d 
 
------- 
Summary 
------- 
 
¶1.  (S) In a February 10 meeting with the Ambassador, 
Reserve Bank Governor Gideon Gono bemoaned the GOZ's 
unwillingness to address deepening corruption, fiscal 
indiscipline and parastatal inefficiencies.  Depicting 
himself as under seige politically, he said the leadership 
had talked him into withdrawing the resignation he 
submitted earlier in the week.  He conceded that the 
country was essentially at a tipping point economically, 
and implied that his contradictory GOZ economic policies 
were propelling the country toward the precipice -- a 
precursor to real change.  The Governor confided that 
Mugabe appeared to be deteriorating mentally and losing his 
capacity to balance factional interests.  Stressing his 
interest in playing a central role in Zimbabwe's future, 
Gono emphasized his independence from ruling party factions 
and committed to keep in touch with us as developments 
unfolded.  End summary. 
 
------------------------------ 
Under Seige for Telling Truths 
------------------------------ 
 
¶2.  (C) In his spacious 22nd floor office atop the 
glistening Reserve Bank building, Gono portrayed himself as 
a man under attack from all sides for the honesty of his 
policy prescriptions.  The ruling elite all "accuse me of 
carrying the water of the IMF, the white farmers, the 
Americans; only the man in the street embraces me," he 
maintained. 
 
¶3.  (C) Gono said his principal offense was to boldly 
attack corruption at the highest levels publicly and 
privately.  He cast mining sector corruption as "out of 
this world" and showed the Ambassador a confidential report 
on gold that implicated senior officials (unnamed) in 
siphoning off production sufficient to reduce official 
output from 22 tons in 2004 to 12 tons in 2005.  He said he 
had delivered several seizures of senior officials' illegal 
gold - the largest at 65 lbs. - to Minister for 
Anti-Corruption (and for State Security and for Lands) 
Mutasa, who had taken no action.  He estimated that 
corruption in gold alone was costing at least USD 250 
million a year - enough to feed, fuel and medicate the 
nation for months. 
 
¶4.  (C) Gono complained that ag sector corruption continued 
unabated despite his high-profile advocacy against it; the 
nation's largest coffee-grower (with 30 percent of national 
output) was the latest to be invaded, he reported.  The 
elite who took farms assumed no liability or risk, each of 
which was essentially transferred to the fiscus on the 
backs of taxpayers.  In sum, corruption was a fundamental 
"unfairness" and principal impediment to economic recovery. 
 
¶5.  (C) According to Gono, his "Operation Tell the Truth" 
was meant to underscore to the party leadership that 
high-level corruption was glaringly obvious to the public 
and severely damaged the party leadership's credibility 
across the board.  He went over a long list of ministers, 
governors, senior police/military officials, NGOs, and 
private sector players with whom he had consulted and 
sought support.  Many expressed support and yet key 
policies were never carried out. 
 
------------------------------ 
Economics Defeated by Politics 
------------------------------ 
 
¶6.  (C) Further on the economic front, Gono quickly went 
down a list of issues, essentially echoing points 
elaborated in his recent monetary policy statement (ref 
B).  The Governor acknowledged the need for moving the 
Bank's quasi-fiscal activities transparently to the budget 
as prescribed by the IMF.  Political realities, however, 
dictated for now that the Bank rush from one patch-up job 
to another as the economy continued its downward spiral. 
Parastatals represented a fundamental conundrum between 
irreconcileable economic and political imperatives.  He 
reiterated his commitment to refurbish Zimbabwe's relations 
with the IFIs and the international community but conceded 
the leadership's insufficient political will to support his 
commitment.  Gono concluded that Zimbabwe's economic 
problems were 85 percent political. 
 
----------------------- 
Inflation Tipping Point 
----------------------- 
 
¶7.  (C) Regarding inflation - "still public enemy number 
one" - Gono said he advised the cabinet not to worry about 
how high it would go; they should instead realize that they 
would have no country left to rule if the current situation 
continued.  Referring to Malcolm Gladwell's book, The 
Tipping Point, Gono said his duty was to advise the 
leadership that growing hysteria about hyperinflation and 
the economy's irrecoverability could prove to be a tipping 
point.  (Later, in private, he admitted to the Ambassador 
that inflation was actually well above 1000 percent and he 
was purposefully suppressing the numbers to "avoid creating 
panic.") 
 
-------------------- 
Resignation Rejected 
-------------------- 
 
¶8.  (C) Gono disclosed that his frustrations led him to 
submit his resignation February 6.  He had spent much of 
the week meeting with Mugabe, the presidium, Mutasa and 
other cabinet officials, finally being persuaded just the 
morning of his meeting with the Ambassador to stay on. 
 
-------------------------------------- 
Lurching Toward a Post-Mugabe Zimbabwe 
-------------------------------------- 
 
¶9.  (S) In a subsequent 30-minute "four-eyes" exchange 
apart from note-takers, the Ambassador observed that Gono's 
often contradictory, even counter-productive, policies and 
public blasts against the elite's misbehavior could be 
interpreted as a deliberate attempt to undermine the 
leadership's credibility and hasten economic collapse. 
Jumping out of his seat, Gono grabbed the Ambassador's hand 
and exclaimed "This proves you are not na e!"  Gono agreed 
that ongoing economic and political developments all served 
as foundation for a post-Mugabe dispensation that had yet 
to be worked out.  He observed that economic distress 
impelled a perceived need for change but factional 
infighting was delaying the succession for which all were 
posturing.  He said that Mugabe's wife had confided to him 
that the President was "out of it" about 75 percent of the 
time and she wanted him to step down. 
 
¶10.  (S) What was to follow Mugabe remained murky, Gono 
maintained.  Mugabe had personally disclosed to Gono his 
doubts about Vice-President Joyce Mujuru's capacity to hold 
the country together.  Gono confided further that Joyce 
herself had recently exploded to Mugabe, complaining about 
perceived slights and asserting her independence from her 
husband, ex-army  chief Solomon "Rex" Mujuru. Full of fear 
and loathing, the inner circle was increasingly beyond 
Mugabe's capacity to control: wild-card Mutasa was at odds 
with ambitious Emmerson Mnangagwa, who was countering 
kingmaker Solomon Mujuru, who didn't get along with Defense 
Forces Chief Chiwenga, etc.  Gono cautioned against 
assuming anything about individual loyalties in the ruling 
party's opaque factional battles since ethnicity, clan, 
totem, personal ambition and old rivalries created a very 
complex and crosscutting web of ties.  Musing aloud, Gono 
said the best solution might be a "junta" that attempted to 
balance all these interests in a collective leadership. 
 
¶11.  (S) Responding to the Ambassador's inquiry about 
pivotal pragmatic players in a post-Mugabe ZANU-PF, Gono, 
speaking sotto voce, mentioned politburo member and 
ex-Finance Minister Simba Makoni and Party Chairman John 
Nkomo.  On a scrap of paper he wrote down "Didymus Mutasa" 
and "(Minister of Agriculture) Made" as two players whom he 
understood could be allowed no place in a post-Mugabe 
government.  Gono said he himself remained independent from 
party factions - "equally distrusted by all," he joked - 
but communicated with leaders from all factions in both 
parties.  He emphasized that in any event he wanted to play 
a central role in the nation's social, economic and 
political future.  At the same time, he stressed that, as a 
rags-to-riches self-made man, he had the confidence to 
"walk away from it all" if necessary. 
 
¶12.  (S) In closing, the Ambassador underscored that 
Zimbabwe was without outside help and beyond the point of 
being able to engineer its own recovery - a tipping point 
in itself.  We all knew the only places from which such 
support would be forthcoming, but such help would be 
predicated on a firm comitment to political and economic 
reform.  For its part, the USG did not desire Zimbabwe's 
further implosion and stood ready to work with the GOZ, 
including a ZANU-PF government, on national recovery - but 
only once it was irrevocably on a path to real political 
and economic reform.  The choice was the ruling party's: 
continue on its self-destructive path and be further 
squeezed by the international community, or redirect itself 
constructively and receive international support.  The 
country needed Gono and other pragmatists, despite 
political difficulties, to be advocates for and ultimately 
deliver meaningful change, the Ambassador concluded.  Gono 
pexpressed relief at this approach and promised to stay in 
touch. 
 
------- 
Comment 
------- 
 
¶13.  (S) "Tipping points" (Gono's unprompted comments 
echoed his remarks to the IMF, ref A) are fast becoming the 
fulcrum for political analysis outside and inside the 
ruling party in Zimbabwe.  Just how close Zimbabwe is to a 
tipping point remains unclear but it is undeniably edging 
ever closer to the brink.  Such discussions helpfully 
reinforce the perceived need for change and the imminence 
of succession - thus fueling what may become a 
self-fulfilling prophecy.  Gono himself may well have 
concluded that, in view of Mugabe's refusal to consider 
desperately needed change, the shortest path to recovery 
(and power for Gideon Gono, of course) is through 
collapse.  Although this may be a touch conspiratorial, it 
does help explain some of Gono's seemingly "irrational" 
policies of the last six months, including the expenditure 
of foreign exchange badly needed for critical imports on 
repayment of Zimbabwe's IMF arrears. 
 
DELL

Does Mnangagwa own The New First National Bank of Congo

This record is a partial extract of the original cable. The full text of the original cable is not available.



                           CONFIDENTIAL     PTO7398

PAGE 01        HARARE  05579  291329Z 
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FM AMEMBASSY HARARE
TO SECSTATE WASHDC IMMEDIATE 7238
INFO USMISSION USUN NEW YORK IMMEDIATE 
NSC WASHDC IMMEDIATE
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RWANDA COLLECTIVE

C O N F I D E N T I A L HARARE 005579 
 
SIPDIS 
 
NSC FOR SENIOR AFRICA DIRECTOR GAYLE SMITH 
LONDON FOR CHARLES GURNEY 
PARIS FOR BISA WILLIAMS 
USUN FOR HOLBROOKE 
 
E.O. 12958: DECL: 09/29/10 
SUBJECT: MNANGAGWA ON KABILA'S VISIT TO HARARE 
 
REFS: A) HARARE 5464, B) HARARE 5137 
                       CONFIDENTIAL 
 
PAGE 02        HARARE  05579  291329Z 
 
CLASSIFIED BY AMBASSADOR TOM MCDONALD.  REASONS: 1.5 (B) AND (D). 
 
¶1.  (C) SUMMARY: AMBASSADOR MCDONALD VISITED SPEAKER OF PARLIAMENT 
AND DROC INTERLOCUTOR EMMERSON MNANGAGWA SEPTEMBER 29 TO TRY TO GET 
A READOUT OF KABILA'S BRIEF HARARE VISIT THE PREVIOUS DAY.  ALTHOUGH 
MNANGAGWA DID NOT SIT IN ON KABILA'S MEETING WITH PRESIDENT MUGABE 
(HE IS TRYING TO "PHASE OUT" HIS OFFICIAL INVOLVEMENT IN THE DROC), 
HE LATER SPOKE BY PHONE TO KABILA, AND THE GOVERNOR OF KATANGA, WHO 
ACCOMPANIED THE CONGOLESE PRESIDENT.  MNANGAGWA ASSERTED THAT KABILA 
INTENDED TO ENSURE THAT HE AND HIS PRINCIPAL ALLY STAY ON TRACK VIS- 
A-VIS LUSAKA AND AVOID ANY "DRIFT" IN THEIR RELATIONSHIP.  WE WILL 
DIG DEEPER WITH OTHER INTERLOCUTORS OVER THE NEXT SEVERAL DAYS TO 
DETERMINE WHETHER KABILA SUCCEEDED IN THAT OBJECTIVE.  END SUMMARY. 
 
¶2.  (C) AMBASSADOR AND POLOFF CALLED ON SPEAKER OF PARLIAMENT AND DROC 
INTERLOCUTOR EMMERSON MNANGAGWA SEPTEMBER 29 TO OBTAIN A READOUT 
OF KABILA'S VISIT WITH PRESIDENT MUGABE THE PREVIOUS DAY.  ONCE AGAIN, 
MNANGAGWA COYLY STATED THAT HE WAS NO LONGER "OFFICIALLY" INVOLVED 
IN DROC MATTERS.  THE SPEAKER DID SAY THAT HE SPOKE TO KABILA BY PHONE 
AFTER THE MEETING, AND THAT FOREIGN MINISTER MUDENGE, GENERAL 
ZVINAVASHE, COMMANDER OF THE ZIMBABWE DEFENSE FORCE, AND THE 
GOVERNOR OF KATANGA PARTICIPATED IN THE MEETING.  KABILA CAME TO 
HARARE AT THE INVITATION OF PRESIDENT MUGABE TO KEEP LUSAKA ON TRACK 
AND ENSURE THERE WAS NO "DRIFT" IN THE BILATERAL RELATIONSHIP, 
ACCORDING TO MNANGAGWA.  THE SPEAKER ALSO SPOKE AT LENGTH BY PHONE 
WITH THE KATANGAN GOVERNOR, BUT WOULD NOT DIVULGE THE SUBJECT OF 
THAT CONVERSATION. 
 
¶3.  (C) WHEN ASKED ABOUT ZIMBABWE'S APPARENT PLANS TO PARTIALLY 
WITHDRAWAL FROM THE DROC (REF A), MNANGAGWA SAID THE PLANS FOR 
                       CONFIDENTIAL 
 
PAGE 03        HARARE  05579  291329Z 
WITHDRAWAL ARE COMPLETE AND HAVE BEEN FOR A WHILE.  GENERAL 
ZVINAVASHE WAS DUE TO BRIEF HIM LATER IN THE DAY ON THE KABILA MEETING 
AND WITHDRAWAL PLANS.  MNANGAGWA DID SAY THAT THE NUMBER OF 
ZIMBABWEAN TROOPS IN DROC IS ALREADY FEWER THAN THE 11,000 FIGURE 
COMMONLY QUOTED IN THE MEDIA, BUT DID NOT PROVIDE HIS OWN FIGURE. 
 
¶4.  (C) MNANGAGWA REVEALED THAT HE IS GOING TO LUBUMBASHI WITH 
PRESIDENT MUGABE ON OCTOBER 2 TO OPEN THE NEW FIRST NATIONAL BANK OF 
CONGO, WHICH HAS GIVEN A FIVE-YEAR MANAGEMENT CONTRACT TO THE FIRST 
BANKING CORPORATION OF ZIMBABWE.  THE NEW CONGOLESE BANK WILL BE 
CHAIRED BY MNANGAGWA AND MANAGED BY JOHN MUSHAWARA, A ZIMBABWEAN 
NATIONAL.  THE ZIMBABWEAN MANAGEMENT COMPANY WILL TRAIN ENGLISH- 
AND FRENCH-SPEAKING CONGOLESE STAFF AND MANAGERS, AND THE BANK WILL 
HELP FACILITATE TRADE BETWEEN ZIMBABWE AND THE DROC.  MNANGAGWA 
ADDED THAT HE HAD NOT YET BEEN TO THE DROC THIS MONTH; AS REPORTED REF 
B, HE ORIGINALLY THOUGHT HE WOULD BE TRAVELING THERE A FEW WEEKS AGO. 
 
¶5.  (C) COMMENT: THE TIGHT-LIPPED MNANGAGWA IS CLEARLY 
TRYING TO GIVE US THE IMPRESSION HE IS NO LONGER DEEPLY 
INVOLVED IN THE DROC, BUT HIS ONGOING AND EVER-GROWING 
FINANCIAL INTERESTS THERE BELIE THAT CLAIM.  ALTHOUGH HE 
MAY NOT PARTICIPATE IN ALL THE HIGH-LEVEL DROC MEETINGS 
HE USED TO, HE STILL HAS A PARAMOUNT INTEREST IN 
MAINTAINING HIS OLD CONTACTS.  HIS CONVERSATION WITH THE 
KATANGAN GOVERNOR COULD HAVE BEEN ABOUT THE EXTENSIVE 
MINING CONCESSIONS MNANGAGWA HAS A STAKE IN THERE, OR IT 
COULD HAVE HAD SOMETHING TO DO WITH A PARTIAL TROOP 
WITHDRAWAL, ESPECIALLY IN LIGHT OF HIS PENDING BRIEFING 
WITH ZVINAVASHE (MOST OF ZIMBABWE'S TROOPS ARE IN 
KATANGA).  WE WILL DIG DEEPER WITH OTHER INTERLOCUTORS 
OVER THE NEXT SEVERAL DAYS TO DETERMINE WHETHER KABILA'S 
                       CONFIDENTIAL 
 
PAGE 04        HARARE  05579  291329Z 
VISIT WILL HAVE AN IMPACT ON ALLAYING ZIMBABWE'S 
FRUSTRATION WITH ITS RECALCITRANT ALLY, AND ITS EVENTUAL 
WITHDRAWAL.  END COMMENT. 
 
MCDONALD 
 
                       CONFIDENTIAL 

Could someone explain James and Saviour Kasukuwere's relationship?

ZAYE must be investigated for corruption and nepotism. Its costing the tax payers’ hard earned income. Consider this; James Pande believed to be Saviour Kasukuwere’s boyfriend is living a lavish life style with showers of presents coming from the later in form of cars and positions of influence. James Pande is the deputy president of Zimbabwe Entrepreneurs Youth Action .

 Below are exclusive pictures of James Pande and Kasukuwere's affair

James seen here with a fleet of his top of the range cars given to him as a present.

In his X5 bought by the Minister of Youth
Development, Indigenisation and Empowerment

James with one of his BMWs

James, boyfriend Kasukuwere and Mugabe

An unknown person, Saviour and James

Tax payers' money at work: Soldiers called in to do some work at James Pande's grandmother's funeral

One of the soldiers with James: The soldier appears to be politically addressing the mourners. The question is; why did the soldiers have to attend James' grandmother's funeral and who sanctioned them?

James, Rushwaya, Saviour

Picture of James and a Private Jet hired for him by Kasukuwere's ministry at the expense of the tax payers

James can be seen relaxed aboard a private jet.

  

TO KILL CORRUPTION, NEPOTISM, THIEVERY AND  MALADMINISTRATION: VOTE MDC-T