Ministers Clash Over Breach of Bilateral Agreements

Ministers Clash Over Breach of Bilateral Agreements

http://www.voazimbabwe.com

Blessing Zulu
03.01.2013

WASHINGTON — The already rickety Zimbabwe government of national unity is 
facing yet another divisive issue – how to react as international courts 
rule that the government must pay millions of dollars to white farmers whose 
lands are protected by Bilateral Investment Promotion and Protection 
Agreements (BIPPAs).

Cabinet sources say the Movement for Democratic Change wants the government 
to stop seizing land or compensate the farmers. However, hardliners in Zanu 
PF say there is no going back on the land reform program.

Lands Minister Herbert Murerwa says the cabinet has agreed not to occupy 
farms protected by a BIPPA, but notes that others in his Zanu PF party think 
no white or foreign-owned enterprise should be exempt.

A German, Heinrich Von Pezold, and other farmers are suing the government 
for US$600 miillion.Von Pezold bought a forestry and sawmilling firm, Border 
Timbers, which operated 5 forest estates and 3 sawmills.

He also had several tea estates in Manicaland Province, which were forcibly 
taken by the government under the land reform scheme.

As Pezold’s purchases were protected by a BIPPA between Germany and Zimbabwe 
signed in 1995, the take-over of the Von Pezold properties caused a 
diplomatic row between the two countries.

Pezold’s case is now up for arbitration at the International Centre for 
Settlement of Investment Disputes in Paris.

Attorney-General Johannes Tomana told VOA that the government is preparing 
its defennce against Von Pezoild.

This will be the second time Zimbabwe has been dragged before the 
International Centre for Settlement of Investment Disputes.

A group of 40 Dutch farmers, whose properties were protected by a bilateral 
agreement, successfully appealed to the international body in April 2009. 
The Dutch were awarded a total of US$25 million.

The government was ordered to pay this within 90 days. Three and a half 
years later, the award remains unpaid and interest on the settlement has 
been accruing.

Zimbabwe said recently it would settle the debt, but the finance minister 
says there is no money.

Chief economist Prosper Chitambara of the Labour and Economic Development 
Research Institute of Zimbabwe says failure to respect bilateral agreements 
is another obstacle to economic recovery. 

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