By Tawanda Musarurwa & Munesu Nyakudya

HARARE - The Zimbabwe Banks and Allied Workers Union (ZIBAWU) has accused Standard Chartered Zimba-bwe of exporting jobs to its Kenyan and Indian counter-parts by migrating a number of processes and services to these domains.

The union claims that the transfer of these processes and services is a strategy to create an artificial "inter-nal crisis" to justify ongoing retrenchments.

Said ZIBAWU general secre-tary Mr Peter Mutasa:"They (StanChart) are migrating certain processes to Kenya

and India, meaning that they are creating jobs for these domains using our resources while at the same time depriving us of our jobs.

"The bank has stopped card production....procurement, bank reconciliation and other minor services like getting a certificate of balance for cli-ents have been transferred to Kenya. This has an impact

firstly through loss of jobs by acquiring services that can be obtained locally."

StanChart Zimbabwe is currently embroiled in a retrenchment scrap with at least 21 middle managers who last week filed a High Court application seeking to bar the bank from retrench-ing them in view of a pend-ing finalisation of their labour

challenge at the Ministry of Public Service, Labour and Social Welfare. In response StanChart Zimbabwe head of corporate affairs Mrs Lill ian Hapanyengwi did not deny ZIBAWU’s claims, stating the bank was in full compliance with local regulations.

"Regrettably the realignment of our strategy has meant some staff losses in markets across our business in Africa, Asia and the Middle East.

"As always, we retain the strictest level of compliance with local regulations and endeavor to reallocate roles as far as possible to minimise any negative impact," she said in response to emailed questions.●

News Update as @ 1530 hours, Tuesday 02 February 2016Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw

Standard Chartered Bank Zimbabwe exporting jobs to Kenya, India?

BH242

By Funny Hudzerema

HARARE – Maize availabil-ity throughout the country is expected be normal after the National Railways and Mozam-bique’s national rail company, Caminhos de Ferro de Moçam-bique (CFM) agreed to a deal to transporting maize from Maputo to different parts of Zimbabwe.

The two companies have con-cluded a deal that will see the implementation of a struc-tured logistics plan that will see expedited movement of imported maize from the ports of Beira and Maputo via Machi-

panda and Chicualacula into Zimbabwe

Speaking after meeting the delegation from Mozambique this morning GMAZ chairman Mr Tafadzwa Musarara said the deal is a high level one which will allow maize to be readily available on the market despite drought conditions.

“The deal was concluded that the two railway companies will work together to transport maize from Maputo to different to different parts of Zimba-bwe,” he said.

According to Mr Musarara, the

deal will also allow Zimba-bwean grain importers to use the port of Beira as a landing point for maize being imported from other countries.

“The deal is to move 20 million tonnes of cereals between 1 February to 30 June 2016. We promised that our shipment of maize documentation at Maputo for Bulawayo will go via Chicualacula, Sango boarder post and for Beira which is going to feed into east and northern parts of the country.

“This is going to improve the product availability on the mar-ket and also try to stabilize the

prices,” he said.

Mr Musarara added that the deal has guaranteed a 10-day turnaround time at a lower tar-iff.

“On these premises we can confirm to our consumers that based on the outcome of this meeting the mealie meal and other relative products will be available despite drought con-ditions.

“We are one of the first South-ern African countries that have secured port of Beira in Maputo for the importation of maize and wheat,” he said.●

3 NEwS

NRZ, Caminhos de Ferro de Moçambique agree maize transportation deal

BH244

By Tawanda Musarurwa

HARARE - The United Nations World Tourism Organisa-tion (UNWTO) has moved to shield the global travel and tourism industry in view of growing health concerns over the 'Zika' virus.

International travellers are typically wary of travel restrictions, and concerns over the Zika virus - a mos-quito-borne flavivirus - has been weighing heavy on the travel industry.

However the global travel body has reiterated the World Health Organisation (WHO)'s declaration that there should be no travel restrictions on affected areas.

" Following the declaration by the World Health Organ-ization of a Public Health Emergency of International Concern on 1 February 2016 on the Zika virus, UNWTO recalls that according to

WHO there should be no restrictions on travel with the affected areas," said the UNWTO.

"UNWTO wil l continue to monitor the situation in close contact with WHO and the relevant tourism authorit ies.

"UNWTO also recalls that health and tourism authori-ties are working together to inform residents, tourists as well as the industry about the precautions to be taken and the tourism sector is working closely with health author-it ies to fol low WHO preven-tion recommendations.

"As per the impact on the tourism sector, it is too early to make any effective assess-ment considering the evolv-ing nature of the situation."

Yesterday, WHO announced a number of measures that travellers to Zika affected countries should take, namely that "travellers to areas with Zika virus trans-mission should be provided with up to date advice on potential risks and appro-priate measures to reduce the possibil ity of exposure to mosquito bites", and that "standard WHO recommen-dations regarding disinfec-tion of aircraft and airports

should be implemented."

Typically, governments issue travel warnings to let their cit izens know about safety concerns that may affect travel to a particular country or region

The virus broke out last Octo-ber with the regions hardest hit by the mosquito-borne virus being the Caribbean, Central and South America.

Zimbabwe is on high alert over a possible outbreak of the virus.

Yesterday Disease prevention and epidemiology director Dr Portia Manangazira told The Herald that the country was on alert due to international travel.

"As part of the increasingly small global community due to international travel and trade, we cannot be compla-cent because as people travel diseases also travel with them," she said.●

5 NEwS

'No travel restrictions on Zika affected areas'

BH24

Fly Harareto JohannesburgFROM DAILYFLIGHTS

*Exclusive of $50 government tax. One way per person. Full terms & conditions apply. Visit fastjet.com for details.

6

HARARE – Failure to remit contributions by struggling members has worsened the deficit position of the Local Authorities Pension Fund (LAPF) to $13,2 million for 2014, from $8,5 million the previous year with its viability now under serious threat, lat-est financial results show.

While contributions and invest-ment income were marginally up to $31 million from $29 million and $6,9 million from $6,4 million respectively, a rise in expenditures eroded earnings of the pension fund.

Rentals were up 29 percent during the period to $6,5 mil-lion. At the close of the year, the LAPF 60 had percent of its investments in fixed property, 34 percent in equities and six percent in the debtors market. The contribution’s impairment levels shot up to $120,1 mil-lion from $90 million in 2013.

“The fund’s financial and actu-arial positions are extremely

precarious. Efforts to reign in the incessantly ballooning contribution debtors’ book have to date, failed to produce positive results,” the LAPF.

“Accordingly, the fund is bedevilled by critical liquidity constraints.”

At the end of 2014, the pen-sion fund had 12 353 benefi-ciaries up from 11 807 in the prior year while the number of contributing local authori-ties, including town and rural district councils remained unchanged at 46.

Given the increasingly diffi-

cult economic environment, the fund is not envisaging a return to financial health in the near term.

“The trustees have an obliga-tion to continue with efforts that would resolve the fund’s mammoth financial difficulties and nurse the fund to nor-malcy,” the committee said.

“Furthermore, the trustees will in tandem with these efforts, look at other options that would safeguard the interests of all members.”

In the meantime, auditors Deloitte and Touche also warned against the LAPF's persistent negative actuarial position which stood at $368 million at the end of December 2014.

“This actuarial deficit also rep-resents a material uncertainty that affects the fund’s going concern assumption,” said Deloitte and Touche. - New Ziana●

7 NEwS

LAPF in $13 million deficit

BH24

MANYAME RURAL DISTRICT COUNCIL

TENDER INVITATION

Tenders are invited from registered companies for the tenders listed below:

TENDER NO. DESCRIPTION TENDER COST

HRD 1/2016 Service of computers, printers, laptops and photocopiers $50

HRD 02/2016 Tender for delivery, Management of Wide Area Network, Internet services, Website and $50

Manyame Domain

FIN01/2016 Insurance $50

RW01/2016 Vehicle Service tender $50

RW02/2016 Earthmoving Equipment service tender $50

Tenders must be enclosed in sealed envelopes and clearly endorsed on the outside with the advertised tender number. Tender documents

can be obtained at Manyame RDC Beatrice offices upon payment of a non-refundable tender fee of $50.

Manyame Rural District Council does not bind itself to accept the lowest or any tender and reserves the right to accept the whole or part of any

tender.

Tenders should be accompanied by the following:

Ÿ Company Profile

Ÿ Certified Copy of Current VAT Clearance Certificate and Certified VAT Registration certificate

Ÿ Physical and Postal address

Ÿ Proof of registration with State Procurement Board

Ÿ Certified copy of Certificate of Incorporation

Ÿ CR14

thYour submission should be hand delivered to the following address by 0900hours on 29 FEBRUARY, 2016.

The Chief Executive Officer Manyame Rural District Council

Manyame Rural District Council Beatrice Head Office

P. O. Box 99 54km along Harare/Masvingo Road

Beatrice

OR

TARI-D

I353390-D2

8

HARARE -The local bourse continues to hemorrhage, with the mainstream indus-trial index losing a further 0.41 to close at 102.33 as activity remained low.

Cement manufacturer Lafarge dropped a signif-icant $0,0695 to settle at $0,2805, while telecoms giant Econet retreated

$0,0097 to trade at $0,2200.

Heavyweights, cigarette maker BAT, beverages giant Delta and con-glomerate Innscor were unchanged at $12,2000, $0,5300 and $0,2000 respectively.

On the upside, GetBucks

advanced by $0,0027 to close at $0,0369 while Barclays was marginally up by $0,0003 to $0,0393.

The mining index was again flat at 19.53 as all the mining counters main-tained previous price lev-els

- BH24 Reporter ●

ZSE9

Industrial equities extend losses

Peace of mind is good

www.sc.com/zwRegistered Commercial Bank

A member of the Deposit Protection Corporation

underwritten by

Standard Chartered Bank keeps you covered in more areas than one with our array of Bancassurance products.

To get the optimum home, motor, life, funeral or business cover, get in touch with us today.

BH2410

MovERS CHANGE TodAy PRICE USC SHAKERS CHANGE TodAy PRICE USC

GetBucks 7.89 3.69 LARFARGE -19.85 28.05

BARCLAYS 0.76 3.93 ECONET -4.22 22.00

INdEx PREvIoUS TodAy MovE CHANGE

INDUSTRIAL 102.74 102.33 -0.41 points -0.40%

MINING 19.53 19.53 +0.00 POINTS +0.00%

11 ZSE TABlES

ZSE

INdICES

Stock Exchange

02 03

ADD TO CARTSave big on selected

Products of your choice

PAYMENTYou can purchase

whenever, wherever using:

DELIVERYSpend $30 or moreon your purchases

and get freedelivery

01 Hello Convenience

www.hammerandtongues.com

BIG CONVENIENCE+BIG SAVINGS+BIG OPPORTUNITIES = BIG HAPPINESS

SHOP ONLINE!!

BH2412

13 dIARy oF EvENTS

The black arrow indicate level of load shedding across the country.

PowER GENERATIoN STATS

Gen Station

02 February 2016

Energy

(Megawatts)

Hwange 424 MW

Kariba 285 MW

Harare 30 MW

Munyati 28 MW

Bulawayo 24 MW

Imports 0 - 300 MW

Total 1263 Mw

—10 February 2016 - Nampak Zimbabwe Annual General Meeting: venue 68 Birmingham Road, Southerton, Harare: Time 12:00

—18 February 2016 - 70th Annual General Meeting of the members of CAFCA ; Place: Boardroom at the company’s registered office at 54 lytton Road, workington, Harare; Time: 12:00 hours

—23 February 2015 - 38th Annual General Meeting of the members of Powerspeed Electrical limited; Place: Powerspeed Board-room, Gate 1, Powerspeed Complex, Corner Cripps Road and Kelvin Road North, Graniteside, Harare; Time: 1100 hours

25 February 2016 - Extraordinary General Meeting (“EGM”) of the Shareholders of Radar Holdings limited; Place: Tanganyika House, 6th Floor Boardroom, Harare; Time: 0900 hours...

25 February 2016 - The 49th Annual General Meeting of Mashonaland Holdings limited; Place: The Boardroom, 19th Floor, ZB life Towers, 77 Jason Moyo Avenue, Harare; Time: 1200 hours...

THE BH24 dIARy

JoHANNESBURG - South Afri-ca's rand looked wobbly against the dollar on Tuesday, with most of the euphoria brought on by the central bank's hiking of interest rates last week giving way to renewed worries over the global economic outlook.

Stocks were set to open mostly flat at 0700 GMT, with the JSE securities exchange's Top-40 futures index adding just 0,17 percent.

At 0642 GMT the rand was down 0,32 percent at 15,9800 per dollar compared with Monday's close.

The local unit had rallied to as high as 15,8500 on Monday, it strongest in more than three weeks, after the South African Reserve Bank (SARB) raised the benchmark lending rate by 50 basis points last Thursday to try and curb inflation.

Analysts said the rand-posi-tive impact of the hike, as well as the Bank of Japan's rate cut which boosted high-yielding assets, had largely worn off.

"Wall Street has set the tone, closing sideways, with gains

restricted by the renewed fall in the oil price," Rand Merchant Bank analyst John Cairns said.

"Rand outperformance on last week's SARB hike has also

ceased, leaving the local unit to reflect the global malaise."

In fixed income, however, government bonds held their ground, with the yield for the

instrument maturing in 2026 down 5.5 basis points at 9,29 percent.

- Reuters●

REGIoNAl NEwS 14

Surprise trade surplus buoys the rand

BP Plc reported a 91 per-cent decline in fourth-quarter earnings after average crude oil prices dropped to the low-est in more than a decade.

Profit adjusted for one-time items and inventory changes totaled $196 million, the London-based company said Tuesday in a statement. That missed the $814,7 million average estimate of 10 ana-lysts surveyed by Bloomberg, and compares with year-ear-lier profit of $2,24 bill ion.

Crude’s collapse has driven BP’s market value below $100 bill ion for the first time since the Gulf of Mexico oil spill in 2010. Chief Executive Officer Bob Dudley has cut bill ions of dollars of spend-ing, removed thousands of jobs and deferred projects in an attempt to protect the bal-ance sheet. Dudley was one of the first of his peers to start preparing for a prolonged slump and that puts BP in a better position, according to Barclays Plc.

Profit has been lower year-on-year for six consecutive quar-ters as oil prices tumbled.

The average price of bench-mark Brent crude slumped 42 percent in the fourth quarter from a year earlier to $44,69 a barrel, the lowest since 2004.

PetroChina Co. said last week it expects 2015 profit to fall at least 60 percent. Chev-ron Corp. on Friday reported its first quarterly loss since 2002, while Royal Dutch Shell Plc said last month that

fourth-quarter profit is likely to drop at least 42 percent. The European oil major is scheduled to report full earn-ings on Thursday.

BP started cutting costs and selling assets following the 2010 oil spill. In October, it lowered its 2015 capi-tal-spending forecast to about $19 bill ion after investing about $23 bill ion in 2014. The company said then it expects

to spend $17 bill ion to $19 bill ion a year through 2017.

BP’s shares have increased 3.7 percent this year follow-ing last year’s 14 percent decline, a second straight year of losses. It’s the best performer on the eight-mem-ber FTSE 350 Oil & Gas Pro-ducers Index after BG Group Plc. - Bloomberg●

INTERNATIoNAl NEwS 15

BP fourth quarter profit $196 million, missing estimates

By dmitry Zhdannikov

After a year of secret diplomacy and hushed-up private talks around the world, OPEC's mighty Saudi Arabia and rival Venezuela were persuaded to cut a deal by non-OPEC Mexico which overcame mutual acrimony and led to a much-needed rise in oil prices.

It was 1998, trust had long broken down within the Organisation of the Petroleum Exporting Countries and it took outside mediation as a last resort to stop the squabbling to clinch deals at secret meetings in Riyadh, Madrid and Miami.

Now, with oil prices touching their lowest level since 2003, OPEC offi-cials and deal brokers are looking back nearly two decades and asking whether a behind-the-scenes deal to curb oil output between OPEC and non-OPEC Russia could be struck.

Some see OPEC rifts as insurmount-able and Russia as a wild card that cannot be trusted, but others say economic necessity to boost oil rev-enue could overcome acrimony and distrust and lead to a global deal to cut supply and mop up the glut.

There are plenty of reasons, however, to dispel optimism.

Unlike in 1998, the challenge goes beyond rebuilding bridges between just two OPEC producers.

It pitches the interests of Saudi Arabia alongside fast-rising OPEC producers Iran and Iraq as well as non-OPEC Russia, the world's largest oil nation. All four are involved in conflict in the Middle East but also desperately need money to keep their oil-dependent economies afloat and meet social costs.

"The 1997/98 deal brokered between Saudi, Venezuela and Mexico took over a year to negotiate and it was touch and go as to whether it would get done or not," said veteran OPEC-watcher Yasser Elguindi of Medley Global Advisors.

But low prices are making producers desperate. Prices sank to below $30 per barrel this year from as high as $115 a barrel just 18 months ago due to one of the worst oil gluts in history.

PERFECT SToRM

This perfect storm was due to a boom

in the extraction of oil from shale rock in the United States and a decision by the Saudi ruling elite to ramp up crude supply to regain market share from higher-cost producers.

Saudi Arabia has pushed its output to record highs over the past year above 10 million barrels per day, almost equal to Russia. Iraq also raised pro-duction sharply above four million bpd over the past months as foreign investment in oil fields paid dividends. Iraq expects to raise output further in 2016.

Meanwhile, Iran says the removal of European sanctions in January should allow it to claw back oil production and a deal with OPEC is unacceptable until output reaches four million bpd.

"You cannot have a deal with non-OPEC, until you achieve a credi-ble OPEC framework which at the moment is not possible because of Iraq and Iran. Until there can be some framework between Iran, Saudi and Iraq, all this non-OPEC talk is just noise," said Elguindi.

Saudi Arabia's Oil Minister Ali al-Naimi, who has been in office since 1995, has said the kingdom would

join cuts if key OPEC and non-OPEC players cooperated.

But insiders say, Saudi Arabia and it Gulf allies Kuwait, Qatar and the United Arab Emirates are all deeply sceptical that a workable consen-sus can be reached. "Iran and Iraq remain the main challenges inside OPEC and Russia won't agree to a cut and is not to be trusted," a senior Gulf OPEC delegate told Reuters.

CHANGE IN dyNAMIC

In the past month, however, all par-ties involved have sent signals sug-gesting the world oil dynamic may be changing.

Iran's main oil export official, Mohsen Qamsari, said in January he did not want a price war and might increase shipments gradually to avoid hurting world prices.

And Iraqi Oil Minister Adel Abdul Mahdi also said his country would support an extraordinary OPEC meet-ing if a joint cut with non-OPEC could be agreed beforehand.

"It is useless to go to a meeting with-out deciding up front. We said 'yes' if

16 analysis16 ANAlySIS

A new global oil deal could draw lessons from 1998

17 analysis17 ANAlySIS

others are willing to go but we have to decide before. Otherwise this will backfire on us," he said.

The statements by Iran and Iraq coin-cided with a change of rhetoric from Russia where the head of its pipeline monopoly and close ally of Presi-dent Vladimir Putin, Nikolai Tokarev, said joint action was possible to halt slumping prices.

For years, Russian officials said oil production cuts were technically dif-ficult after an ill-fated deal with OPEC in 2001, when Moscow agreed to cooperate but raised exports instead. It was this that created the mistrust that exists today.

But back then Putin was only at the start of his first presidential term and had little control of the oil industry, split between various oligarchs fol-lowing the chaotic privatisation after the collapse of the Soviet Union.

Fast forward 15 years, and the oil industry is mostly owned by the Kremlin and Putin has almost abso-lute power.

"You have to take this seriously now. Key will be if Russia can deliver," said

OPEC watcher and founder of U.S.-based Pira Group Gary Ross, who was involved in the 2001 Russia-OPEC talks.

Putin and his ally, head of Kremlin oil major Rosneft , Igor Sechin, have yet to speak about the recent talk of a joint move with OPEC.

But Sechin in the past said he would not support cooperation by Russia, where one popular conspiracy the-ory maintains that the low oil prices of the 1980s were orchestrated by Saudi Arabia and the United States to undermine the Soviet Union. Sechin has also said OPEC had "lost its teeth". A year ago, Putin said it was possible that the current price crash was orchestrated in the same way as the crash of the 1980s, which effec-tively led to a collapse of the Soviet Union - a huge tragedy, according to Putin.

"There is a lot of talk today about why it is happening. Maybe it is a Saudi-U.S. plot to punish Iran, or put pressure on the Russian economy or Venezuela," Putin said back then.

But with the Russian rouble sinking to a record low and a parliamentary

election this year and a presidential election in 2018, pressure is rising on the Kremlin to protect state revenues and limit public discontent.

"GRANd BARGAIN"

Russia's latest rhetoric has left OPEC watchers and Kremlinologists guess-ing if it is just a verbal intervention to lift oil prices or whether it is part of a real deal for Putin, which may also involve a compromise with Saudi Arabia over Syria or indeed any other "Grand Bargain".

Putin has dispatched heavyweight veteran foreign minister Sergei Lav-rov to the Middle East this week. Lav-rov, who has almost never spoken about oil, will travel to Oman and the UAE to discuss the oil market.

Meanwhile, Venezuelan Oil Minis-ter Eulogio Del Pino will visit Russia, Qatar, Iran and Saudi Arabia this week to drum up support for a joint cut in oil production.

And just like in 1998, behind-the-scene talks are gathering pace. When Putin met the Emir of Qatar last month in Moscow, oil was on the agenda, according to a senior source

in the Gulf.

And just as in 1998 and 1999, when it took two years and many secret meetings in Miami, Madrid, the Hague, Amsterdam and Riyadh to clinch two decisive supply cuts, the process in 2016 could be equally painful.

The head of Kremlin-backed Russian Direct Investment Fund, Kirill Dmitri-yev, said a deal between Russia and OPEC was possible but at the right time, "maybe within a year", when the markets rebalance and it became easier to reach agreements. Goldman Sachs, which is bearish on oil, said it believes cooperation between OPEC and Russia would be "highly unlikely" and also self-defeating as higher prices would bring shelved output, including in the United States, back onto the market.

But sceptics could do well to read a paper by Robert Mabro, founder of the Oxford Institute for Energy Studies who helped to broker the 1998 deal. Mabro wrote at the time: "Changes in policy are always possi-ble, even likely, when significant rev-enue losses are at stake". - Reuters ●