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Border Timbers hits Zimbabwe with US$164m Washington lawsuit

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BY CAROLINE SIMSON

WASHINGTON -A forestry and sawmill company initiated litigation Wednesday in Washington, D.C., to enforce a more than US$164 million arbitral award it won against Zimbabwe after the country seized its forestry plantation to redistribute the land to the indigenous population.

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Border Timbers Ltd. filed its petition to enforce the award, telling the court that after more than six years since it won the award, the southeast African nation still hasn’t paid a penny of what it owes.

Zimbabwe had attempted to have the Border Timbers award annulled, but that bid came up short nearly three years ago.

The company argued that the country has no choice now but to pay up.

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“Currently, Zimbabwe owes Borders $164,223,664.67 as at August 31, 2021,” according to the petition.

“This includes post-award interest through August 31, 2021 in the amount of $29,415,212.31. Zimbabwe has not paid any part of the award and the amounts awarded remain unsatisfied and outstanding in their entirety.”

Lawyers for Border Timbers and representatives for Zimbabwe could not immediately be reached for comment on Thursday.

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The move by Border Timbers comes just under two months after a German and Swiss family, the von Pezolds, filed their own petition seeking to enforce a separate $277 million award they had won in proceedings arising out of the same dispute.

The von Pezolds were former majority shareholders in Border Timbers.

The von Pezolds had filed litigation in the United Kingdom last year aimed at halting alleged settlement proceedings with Zimbabwe relating to the $124 million award that they viewed to be unfavorable.

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A UK court records indicate that the proceeding remains pending, though its status beyond that wasn’t immediately clear on Thursday.

The dispute has its origins in a land reform program aimed at reversing a colonial-era policy that distributed much of the land to white people, relegating the indigenous Black population to a smaller amount of communal land that was largely devoted to subsistence farming.

Once Robert Mugabe was elected president in 1980 after Zimbabwe’s independence, the country looked to redistribute the land back to the indigenous population, according to the award.

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At first the government tried to convince the white farmers to sell their land, but after little progress was made, the country enacted legislation in 1992 enabling the government to seize the land in exchange for fair compensation.

But this phase, too, went slowly, in part due to a lack of funds to compensate landowners for land acquired from them, according to the award.

In early 2000, the government attempted to pass a draft constitution that would have permitted the government to seize land without compensation.

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Soon after this was rejected, the first invasions of white-owned farms began in an area near the capital of Harare, and gradually spread across the country.

The government subsequently enacted a new “fast track land reform program” later in 2000, under which it was permitted to compensate landowners only for “improvements” to agricultural land, as opposed to the land itself, according to the award.

An amendment enacted later absolved Zimbabwe of any duty to compensate landowners for the value of agricultural land acquired for resettlement purposes, except for improvements.

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Border Timbers held an integrated forestry plantation comprising 28 properties with pine and eucalyptus plantations and three sawmills set on nearly 48,000 hectares (approximately 118,600 acres) in eastern Zimbabwe, as well as a nearby pole treatment plant and two factories.

Much of the property was seized by the Zimbabwean government in 2005, and the rest was allegedly rendered worthless.

The International Centre for Settlement of Investment Disputes tribunal concluded that Zimbabwe had unlawfully expropriated the properties, treated Border Timbers unfairly, and taken unreasonable and discriminatory measures that interfered with its rights in the properties, among other things.

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It awarded Border Timbers and affiliated companies $124 million plus interest and costs.

Border Timbers Ltd. is represented by Jennifer Ancona Semko and Graham Cronogue of Baker McKenzie LLP. – Law360

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Trump orders US exit from the World Health Organization

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Picture: Reuters
 BY REUTERS
The United States will exit the World Health Organization, President Donald Trumpsaid on Monday, saying the global health agency had mishandled the COVID-19 pandemic and other international health crises.
Trump said the WHO had failed to act independently from the “inappropriate political influence of WHO member states” and required “unfairly onerous payments” from the U.S. that are disproportionate to the sums provided by other, larger countries, such as China.
“World Health ripped us off, everybody rips off the United States. It’s not going to happen anymore,” Trump said at the signing of an executive order on the withdrawal, shortly after his inauguration to a second term.
The WHO did not immediately respond to a request for comment.
The move means the U.S. will leave the United Nations health agency in 12 months’ time and stop all financial contributions to its work. The United States is by far the WHO’s biggest financial backer, contributing around 18% of its overall funding. WHO’s most recent two-year budget, for 2024-2025, was $6.8 billion.
The U.S. departure will likely put at risk programmes across the organisation, according to several experts both inside and outside the WHO, notably those tackling tuberculosis, the world’s biggest infectious disease killer, as well as HIV/AIDS and other health emergencies.
Trump’s order said the administration would cease negotiations on the WHO pandemic treaty while the withdrawal is in progress. U.S. government personnel working with the WHO will be recalled and reassigned, and the government will look for partners to take over necessary WHO activities, according to the order.
The government will review, rescind, and replace the 2024 U.S. Global Health Security Strategy as soon as practicable, the order says.
The next-largest donors to the WHO are the Bill & Melinda Gates Foundation, although most of that funding goes to polio eradication, and the global vaccine group Gavi, followed by the European Commission and the World Bank. The next-largest national donor is Germany, which contributes around 3% of the WHO’s funding.
Trump’s withdrawal from the WHO is not unexpected. He took steps to quit the body in 2020, during his first term as president, accusing the WHO of aiding China’s efforts to “mislead the world” about the origins of COVID.
WHO vigorously denies the allegation and says it continues to press Beijing to share data to determine whether COVID emerged from human contact with infected animals or due to research into similar viruses in a domestic laboratory.
Trump also suspended U.S. contributions to the agency, costing it nearly $200 million in 2020-2021 versus the previous two-year budgets, as it battled the world’s worst health emergency in a century.

Under U.S. law, leaving the WHO requires a one-year notice period, and the payment of any outstanding fees. Before the U.S. withdrawal could be completed last time, Joe Biden won the country’s presidential election and put a stop to it on his first day in office on Jan. 20, 2021.

SOURCE: REUTERS

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Crocodile attacks on the rise: Zimparks sounds alarm

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BY NOKUTHABA DLAMINI

A surge in human-crocodile conflicts has prompted the Zimbabwe Parks and Wildlife Management Authority (ZimParks) to issue a warning to the public to exercise extreme caution when near water bodies.

According to ZimParks, over 20 incidents of crocodile attacks have been reported in the past two months, resulting in eight fatalities and three serious injuries. The attacks have also posed a threat to livestock.

The most affected areas include the South East Lowveld, specifically Lundi, Tokwe Mukosi, and Lake Mutirikwi, which have recorded six incidents. The Central Region, including Munyati River, Kwekwe River, and Sebakwe River, has seen five incidents, while the Mid Zambezi area, comprising Lake Kariba, Hunyani River, and Angwa River, has also recorded five incidents.

ZimParks is urging the public to remain alert and take necessary precautions when engaging in domestic activities near water bodies.

Livestock owners are advised not to leave their animals unattended near rivers or lakes, as they may become easy targets for crocodiles.

“In light of these, the authority urges the public to exercise extreme caution around water bodies and remain alert while engaging in domestic activities near these areas to minimise the risk of crocodile attacks,”Zimaparks cautioned in a press statement.

“To minimize the risk of conflict with crocodiles, livestock should not be left unattended near rivers or lakes to prevent them from becoming easy targets for crocodiles.”

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The authority reiterated its commitment to promoting coexistence between humans and wildlife, ensuring safety and fostering respect for wildlife for the benefit of present and future generations.

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Victoria Falls residents fight back against minister’s decision to nullify town clerk’s suspension

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BY WANDILE TSHUMA

Residents of Victoria Falls have come out guns blazing against Local Government and Public Works Minister Daniel Garwe’s decision to nullify the suspension of Town Clerk Ronnie Dube.

The controversy began when the City of Victoria Falls council suspended Dube over allegations of corruption.

However, Minister Garwe intervened, citing that the council’s resolution contravenes Section 139 (4) of the Urban Councils Act.

In response, the residents associations, through their lawyers Dube, Mguni and Dube Legal Practitioners, penned a scathing letter to Minister Garwe, demanding that he withdraws his directive.

The letter, signed by lawyers Dube, Mguni and Dube, reads:

“We have been approached by the Hwange District Residents Association (HWADRA) and Victoria Falls Combined Residents Association (VIFACORA) with respect to the contents of this letter.

Our clients are concerned that the contents of the Honourable Minister’s letter purport to represent the interest of the inhabitants of the City of Victoria Falls, whom he has not consulted.

The Honourable Minister may need to know that on the 8th of December 2024, a joint meeting of above named residents associations have resolved to support the resolution of their agents and representatives in council.

There is therefore no doubt that the town clerk’s suspension is supported by the inhabitants of the City of Victoria Falls.

The Honourable Minister is advised that the suspension of the town clerk complies with Section 139 (4) of the Urban Councils Act [Chapter 20:15] regarding the inquiry into the allegations of the suspended town clerk.

There is only one inquiry committee before which the suspended town clerk is expected to go and make his representations when invited to do so.

Procedurally, if the town clerk is found to have a case to answer, he will appear before a disciplinary committee, which is yet to be constituted.

The residents are aware that the resolution has recommendations for possible experts to be approached to form the disciplinary committee, should that become necessary.

It stands to reason that the investigative inquiry committee cannot sit and be judges over their own report.

This cannot render the resolution of council to be unlawful as to warrant a ministerial directive to rescind it.

The feeling of the residents is that the costs of a disciplinary process cannot be avoided if government is serious about combating corruption in all its forms.

The resolution is clear that the town clerk was suspended without salary and benefits.

The decision to pay the suspended town clerk allowances is supported by section 139 (5) (b) of the Urban Councils Act [Chapter 20:15]. It is statutorily provided.

There is no contradiction in the resolution.

There is, with respect, no legal basis for councillors to rescind a lawful resolution meant to combat corruption in local authorities.

The Honourable Minister’s directive has adverse effects on fighting corruption.

The directive is meant to lift the town clerk’s suspension without him answering to the allegations against him.

It is not government policy that those accused of corruption can be let off the hook without being investigated or brought to book.

The President of the Republic of Zimbabwe, DR E.D Mnangagwa is on record saying corruption is working against the attainment of national development goals and is inimical to public interests.

Our clients’ considered view is that the Honourable Minister will be best informed about the interests of the inhabitants of Victoria Falls if he visits and consults the taxpayers of council.

Meanwhile, our clients who are a representative body of the inhabitants of the council area are in support of the town clerk’s suspension and are monitoring the inquiry into the town clerk’s allegations.

Accordingly, we have been instructed to demand that the Honourable Minister, immediately withdraws his letter dated 6th December 2024 to the Mayor of Victoria Falls and make arrangements for a public consultation with the inhabitants of the council area, failing which the Honourable Minister and the City of Victoria Falls (as represented by the Mayor) will be taken to the High Court of Zimbabwe for appropriate relief.

We trust this is in order.

Yours faithfully,

DUBE, MGUNI & DUBE LEGAL PRACTITIONERS

CC: His Worship the Mayor of Victoria Falls, Clr P.T Moyo

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