Hands off BIPA Farms

Hands off BIPA Farms

Tuesday, 01 January 2013 00:00

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Minister Murerwa

Zvamaida Murwira Senior Reporter
GOVERNMENT has stopped the acquisition of farms covered under Bilateral Investment Promotion and Protection Agreement as the State strives to manage its liability. The State has also revoked offer

letters for 55 A1 farmers allocated pieces of land at Tavydale Farm in Mazowe district.
This is part of Government’s efforts to observe agreement entered into under BIPPA.

Lands, Land Reforms and Resettlement Minister Hebert Murerwa yesterday said while the law conferred Government with powers to acquire any land, it had decided to put on hold acquiring of farms under BIPPA.

Agreements under BIPPA require that Government pay fair compensation in currency of the former owner’s choice for both land and improvements.

Minister Murerwa said the decision to stop acquiring BIPPA farms was in respect of the agreement while managing State liability.

He said Government was saddled with a US$25 million debt owed to 40 Dutch farmers.
The farmers successfully sued at the International Court for Settlement of Investment Disputes.

“Although under Zimbabwean law, Government can legally acquire such farms, in view of the ongoing litigation in the ISCID, Government has taken the decision not to settle persons on farms covered by BIPPA for now,” said Minister Murerwa.

“Government will abide by the provision of the agreement and at the same time we do not want to increase our liability.”

Some of the countries covered by BIPPA include Denmark, Germany, Belgium, Netherlands, Italy, Malaysia and Switzerland.

Meanwhile, Minister Murerwa said Government would have to find alternative land for the affected A1 farmers.

“At Tavydale farm, a decision has been made by myself and the Mashonaland Central Governor and Resident Minister Martin Dinha that we will not settle farmers on the property,” he said.

Minister Murerwa said the offer letters issued by Mazowe district administrator Ms Shelter Nyakudya were done in error.