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June 2010 vol 16, Business , Financial and Property Indaba

Trade pact violation endangers aid: Germany

Fri, Jun 18, 2010

HARARE – The German embassy in Harare has written to the Zimbabwe government protesting against continued violation of an investment protection agreement between the two countries and warned this could harm further aid from Berlin.

HARARE – The German embassy in Harare has written to the Zimbabwe

government protesting against continued violation of an investment

protection agreement between the two countries and warned this could

harm further aid from Berlin.

 

The embassy acted after farm invaders – who are members or supporters

of President Robert Mugabe’s ZANU PF party – this month moved onto

three properties belonging to German citizens.

 

The letter to Foreign Affairs Minister Simbarashe Mumbengegwi identified the properties occupied farm invaders as Makandi Tea and Coffee (Private) Limited, Border Timbers Limited both in Manicaland province and Forrester Estate (Private) Limited in Mashonaland Central. They are all owned by German citizen Heinrich von Pezold.

 

“The German embassy notes with great concern that property rights of

German nationals and their investments in Zimbabwe are being put under

threat, in clear violation of international law,” said the letter, a copy of which was shown to ZimOnline.

 

It added: “Despite repeated confirmations of high ranking representatives of the Zimbabwean government about its intention to honour the BIPPA (bilateral investment protection and promotion agreement) in full, the development on the ground so far shows insufficient commitment to follow up on its declarations."

 

The embassy said continued violations of the bilateral trade agreement

between the two nations will jeopardise chances of the southern African country receiving financial support from Germany through a multi donor trust fund (MDTF) -- a basket fund coordinated by the international community to support the inclusive government.

 

“The Zimbabwean government is well aware of Germany's intention to

considerably contribute to the Multi Donor Trust Fund. For this contribution to be approved the consent of the German parliament is a prerequisite. News about German nationals falling victim to land invasions in Zimbabwe will make approval of German funding of the MDTF in the German parliament highly unlikely,” it said.

 

Mumbengegwi refused to take question on the matter. “I cannot comment

about the letter since it was addressed to me and not to the media. Protocol issues are not discussed through the media,” he said when contacted for comment.

 

Last year the German embassy sent a protest note to the Zimbabwean

government after a German national lost US$1.5 million worth of investment in Karori farm in Headlands that was invaded by a top army brigadier.

 

The farm, belonging to a Zimbabwean white commercial farmer Charles Lock, was occupied for weeks by soldiers acting on behalf of the brigadier in a bid to force the farmer to abandon the land, crops, farm equipment, livestock, household property and other personal effects.

 

Mugabe’s chaotic and often violent programme to seize white-owned farm land for redistribution to landless blacks also saw several farms owned by foreigners and protected under bilateral trade agreements between Zimbabwe and other countries seized without compensation.

 

The seizure of private land has raised questions about Zimbabwe’s commitment to uphold property rights as well as agreements entered with other countries.

 

An audit of Mugabe’s land reforms promised by the new unity government the veteran President formed with Prime Minister Morgan Tsvangirai last year has failed to take off apparently because there is no cash to fund the exercise.

By Zimonline

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