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Cabinet shuns Gono's social contract initiative
Dumisani Ndlela, The Zimbabwe Independent
February 16, 2007

http://www.theindependent.co.zw/viewinfo.cfm?linkid=12&id=10027

RESERVE Bank governor Gideon Gono’s crusade for a social contract has failed to win the backing of President Robert Mugabe’s cabinet, raising fears it could crumble and force Gono into drastic policy measures in March, businessdigest learnt this week.

Sources indicated that there was growing resistance from Mugabe’s cabinet to the proposal, and various government ministers were cringing from buying into several targets Gono had prescribed for them under a holistic turnaround package announced in a monetary policy presentation two weeks ago.

Mugabe, who backs Gono’s proposals, was reportedly swinging between opposition and support because of increasing concerns of the possibility of calls to address issues of governance and alleged human rights violations by his government that might arise from discussions of a social contract between social partners.

Sources indicated that intense bickering around the issue, which has been convoluted by a succession battle between feuding camps in Mugabe’s cabinet, had resulted in Mugabe sidelining Nicholas Goche, the Minister of Public Service, Labour and Social Welfare who should traditionally spearhead the campaign for the social contract.

Goche is reportedly aligned to a faction led by retired General Solomon Mujuru, husband to Vice-President Joice Mujuru. The other faction is reportedly led by Emmerson Mnangagwa, the Minister of Rural Housing and Social Amenities.

Plans for the social contract were now being handled directly by Mugabe’s office under the supervision of Misheck Sibanda, the Chief Secretary to the President and Cabinet.

Sources said Sibanda had already appointed Mike Bimha, the past-president of the Employers Confederation of Zimbabwe (Emcoz) and Lancester Museka, the permanent secretary in Goche’s ministry, to constitute a sub-committee expected to champion negotiations for a social contract.

"We’re amazed at their way of doing things," a source in the business community familiar with the developments said, indicating that no consultations around the issue of starting discussions for a social contract had been made with representatives of business and labour.

Labour is represented by the Zimbabwe Congress of Trade Unions (ZCTU) whose president, Lovemore Matombo, said yesterday they had not yet been approached on the issue.

Business is represented by Emcoz, whose president, Johnson Manyakara, could not be contacted for comment yesterday.

Gono has suggested the inclusion of churches, non-governmental organisations and the diplomatic community in the establishment of a social contract.

Sources said government ministers were angry with Gono’s prescriptions to ministries, saying any suggestion for ministerial targets should have been made in private consultations rather than through a monetary policy statement.

"There’s certainly no buy-in from government ministers," a source confirmed to businessdigest.

He confirmed reports swirling in the market suggesting that cabinet perceived Gono’s prescription of targets to ministries as "supervision of ministries by the governor, giving ministers directives" which he said was being widely viewed as confirming reports of Gono’s ambitions for a prime ministerial position under constitutional reforms suggested by Mugabe to harmonise presidential and parliamentary elections.

Sources indicated that Gono, who was increasingly growing agitated by opposition from Mugabe’s cabinet, could surprise the market with severe policy measures that could even go against the grain of political thinking within the ruling party to rescue his score card in the face of escalating inflation which this week touched an all-time high of 1 593,6% year-on-year.

"We feel he might move if central government does not move. Gono is a creature of habit; if he sees no movement from central government, he’ll move himself," a market watcher closely following the developments said.

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