Finance Minister Patrick Chinamasa says the government does not have the capacity to pay for farm compensations at present but will acknowledge indebtedness over a period of time with the farmers that had their land taken from them during the Land Reform Programme.
Minister Chinamasa told delegates at a consensus based compensation mechanisms workshop meeting that the government would need time to pay the farmers although there was a need to bring closure to the land issue.
“Currently we don’ have the budget, or resources to pay now, we’ve liquidity challenges in the economy and a debt burden which should be taken into consideration in developing a compensation plan,” he said adding that any payment plan that will be agreed upon should include contribution by new farmers into a fund that will service the indebtedness.
“Compensation mechanisms should include into consideration the extent to which the national budget is able to fund compensation and the extent of contribution by the new farmers.
“Those who have benefited will be called to pay for the inheritance. This however will not be achieved overnight as government is currently in the process of remapping the land to have permanent boundaries in order to issue out security of tenure.
He also said any compensation method mooted must be home grown, and be in cognisance of the economy but said it was important to go through it as part of re-engagement efforts with the international community.
“We want to open a new chapter, we’ve lost valuable economic time and given our potential we shouldn’t be where we’re today,” he said.
Minister Chinamasa said: “What the economy is currently facing is lack of confidence, which we’ve mutually destroyed ourselves and can only be restored if we engage with each other.
“The economy is for all of us but for as long we’re quarrelling, we’ll not get anywhere,” he said.
“My view is that we should get out of the trenches and talk to each other, let’s not create snipers out of trenches so that we’re forced to remain in the trenches. Being there isn’t good for anyone, including the former farmers, new farmers, government and economy.
“We’re all losers if we don’t conclude this issue, and put to rest the land reform programme,” he said.
Minister Chinamasa said contrary to reports that a $10 billion fund had been created, the compensation figure will only come up after completion of the evaluations.
Earlier, Lands and Rural Settlement Minister Douglas Mombeshora had indicated that to date 1,519 farms out of 6,240 had been valued. Mombeshora in contrast to what Chinamasa said told the conference that about 240 previous owners had been fully compensated and 17 partially paid.
Minister Mombeshora said it has always been the government’s desire to honour its obligations to pay the former farm owners, but the process had been delayed due to conflicts on the valuation processes.
“I wish to unequivocally reaffirm that it has always been and it remains the intention of government to pay fair compensation to the affected farmers as prescribed under the relevant legal framework in the Constitution of Zimbabwe, the Land Acquisition Act Chapter 20:10,” he said.
Minister Mombeshora said Section 295(1) and (2) of the Constitution provides for the payment of compensation for land and improvements to indigenous owners whose farms were acquired and similarly for properties protected by Bilateral Investment Promotion and Protection (BIPPA) Agreements, while Section 295(3) of the Constitution provides for compensation for improvements only for any other category of former farm owners.
He said the government had received financial support worth $7. 8 million from the United Nations Development Programme and the European Union to conduct valuations and other related activities under the compensation programme. — Wires