Tsvangirai moves to assure Mugabe

Zimbabwe's Prime Minister-designate Morgan Tsvangirai has said President Robert Mugabe has nothing to fear from the historic deal signed on Monday.

In his first interview as PM, Mr Tsvangirai told the BBC that Mr Mugabe had a "paranoid obsession" that there was an attempt to overthrow him.
Mr Tsvangirai said this was not the case and that confidence was vital if Zimbabwe was to be rebuilt.
Monday's power-sharing deal ended a decade of rivalry between the two men.
The division of cabinet posts have not yet been finalised but the deal proposes a 50-50 division of power, with Mr Mugabe remaining head of state and head of the cabinet.

Israel's Kadima picks new leader

Voting is under way as Israel's ruling Kadima party chooses a successor to its leader, Prime Minister Ehud Olmert.

The front-runners to succeed him are Foreign Minister Tzipi Livni and Transport Minister Shaul Mofaz.
Mr Olmert, who denies corruption claims, has said he will step down as PM after his successor is chosen.
But he may stay on as caretaker prime minister until a new coalition government is formed, which could take weeks or even months.
Ms Livni's supporters hope she will breathe new life into a political establishment mired in sleaze and dominated by ageing, male, former military figures, says the BBC's Heather Sharp in Jerusalem.
But the former Mossad spy is widely criticised for her lack of political experience.
Mr Mofaz, a former army chief of staff who has talked tough on Iran, is seen as further to the right on security, but some say there is little difference between him and the opposition Likud party, our correspondent adds.

BEIJING, Sept. 16 (Xinhua) -- Chinese President Hu Jintao on Tuesday held talks with Niger's Prime Minister Seyni Oumarou, who is here for the closing

BEIJING, Sept. 16 (Xinhua) -- Chinese President Hu Jintao on Tuesday held talks with Niger's Prime Minister Seyni Oumarou, who is here for the closing ceremony of the Beijing Paralympics scheduled for Wednesday.
Hu thanked the Nigerien government and people for the support to the Beijing Olympics and Paralympics, as well as the sympathy and solicitude they delivered to the Chinese after the May 12 earthquake in Sichuan Province.

Hu said the friendly cooperation between China and Niger has been developing smoothly.
"The two countries have developed mutual trust in political field, candid cooperation in economic and trade fields, and close coordination in international affairs," he said.
Hu expressed appreciation of Niger's adherence to the one-China policy, as well as its support to the reunification cause of China.
Both China and Niger are developing countries, each being the other's important partner in realizing mutual benefits and development, Hu said.
The two countries shall work together to make plans for the political, economic and trade cooperation in the near future, he said.
The Chinese president also called for more experience-sharing in economic development and social stability, and more consultation in international affairs.
Oumarou noted that China has been helping Niger for a long time through assistance to the construction of water supply projects, providing food aid and writing off the debts Niger owed to China.
Oumarou said he hopes China will continue to support Niger's efforts to eliminate poverty and looks forward to more cooperation with China in infrastructure construction and energy exploration.
Oumarou congratulated Beijing on the successful Olympics and Paralympic Games.

Chinese, Japanese personages discuss bilateral relations at Beijing-Tokyo Forum

TOKYO, Sept. 16 (Xinhua) -- The Fourth Beijing-Tokyo Forum began its plenary meeting Tuesday in Tokyo. Personages and prominent figures from various circles of the two nations had in-depth exchanges of views on bilateral relations and were of the same opinion that promoting two-way exchanges and mutual trust will be conducive to the advancement of bilateral ties.
At the start of the plenary meeting, Japanese Foreign Minister Masahiko Komura and Chinese Ambassador to Japan Cui Tiankai, on behalf of their respective governments, advocated joint efforts Tuesday to push forward the Japan-China relations and conveyed good wishes for their further advance.
Komura said that the Japanese government attaches great importance to its ties with China and it is his conviction that this general trend will not be reversed.
The two nations have made joint efforts to push forward bilateral ties as well as address regional and international issues in recent years, said Komura, adding that under the guiding principle of the Japan-China strategic and mutually beneficial relations, the two nations have witnessed advances and improvements in their ties.
Cui, for his part, said that national interests of the two countries entail both friendly relations and mutually beneficial cooperation.
And the stable, sound and long-term development of China-Japan relations serves as an important factor in maintaining both nations' prosperity and stability in the volatile international environments.
In his keynote speech at the meeting, Wang Chen, director of the State Council Information Office of China, hailed the China-Japan cooperation as a fine example for countries with different social systems.
He said that there are important bases and favorable environments for the long-term development of bilateral friendly relations.
For China-Japan friendship, geographical proximity is the natural link, political mutual trust serves as an important basis, mutually beneficial cooperation the economic basis and long-term people-to-people exchanges the important bridge, said Wang.
This year marks the 30th anniversary of the launch of China's reform and opening-up, he said, adding that China has made world-acknowledged outstanding achievements in its development in the past 30 years.
Wang said that China's development, characterized by its peace, openness, cooperation and harmony, offers a brighter prospect for the development of both nations.
The current world is undergoing profound changes, he said. And China is willing to work with Japan to actively participate in international cooperation in various areas, jointly promote world peace and achieve common development of the human race.
The two sides need to deepen mutual understanding in a bid to continuously promote the sound development of bilateral ties, said Wang, expressing his belief that with goodwill as well as cooperative attitude aimed at win-win results and sincerity for frank exchanges of views, the friendly relations between the two nations are sure to be continuously cemented.
Representatives from political circles as well as friendship bodies, including Zhao Qizheng, chairman of the foreign affairs committee of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), Chen Haosu, head of the Chinese People's Association of Friendship with Foreign Countries, Li Zhaoxing, chairman of the foreign affairs committee of China's National People's Congress (NPC), Yusuhisa Shiozaki, Japan's former chief cabinet secretary, Koichi Kato, chairman of Japan-China Friendship Association, also participated in the discussion of the general situation of China-Japan relations.
Later in the day, the forum had panel dialogues in terms of their respective subjects on such issues as politics, region, media, economy, security, environment and food. Having had frank and in-depth exchanges of views on the relevant issues, representatives of both sides were of the same mind on some issues though remained divided on some others. Most of the participants, however, agreed that the face-to-face exchange of views should be promoted as it helps deepen mutual understanding of the two nations.
The Fourth Beijing-Tokyo Forum opened with a dinner party late Monday. In their speeches at the party, Hiroya Masuda, Japanese Minister of Internal Affairs and Communications, and Wang Chen lauded the role the forum has played in the development of bilateral ties and wished it a success.
Present at the three-day forum are more than 100 personages from various circles of both countries.
The annual forum, co-sponsored by China Daily and the non-profit Japanese organization Genron NPO, is held alternately in Beijing and Tokyo. The first Tokyo-Beijing Forum took place in Beijing in August 2005.

UN envoy hails Dar on democracy

UNITED Nations (UN) Resident Coordinator, Ambassador Oscar Fernandez Taranco, has commended the fourth-phase government for its endeavour in promoting democracy and good governance in the country. “The UN appreciates effort undertaken by the fourth phase government led by President Jakaya Kikwete in promoting transparency, accountability and responsiveness within state machinery,” said ambassador Taranco. The UN Ambassador was speaking yesterday in Dar es Salaam at Mnazi Mmoja grounds during celebrations to commemorate the International Day of Democracy. Mr Taranco who was the guest of honour explicitly reaffirmed the UN’s commitment in supporting various local institutions to sustain and strengthen democracy. “Promoting democracy requires unwavering commitment on the side of the government and other key stakeholders, such as civil society organisations and political parties. “It should also be noted that democracy goes beyond holding regular elections, but also requires all key partners to address issues pertaining to justice, transparency, human liberty and dignity and responsible media,” he said. The Vice-chairman of the ruling CCM, Pius Msekwa, reiterated a need for the government and other key players to adhere to principl es of democracy, such as holding regular elections, existence of multi-party politics, participation of the grassroots in development matters, free and independent media. “However we should do it in such a way that it will not jeopardise national peace, harmony and tranquillity that we have been enjoying for decades,” said the CCM Vice Chairman. Mr Msekwa who is also the Vice-Chairman of the Tanzania Centre for Democracy (TCD), insisted that the practice of democracy in the country should be geared to promote welfare of the people, equity and participation of the grassroots in governance related matters, just to mention a few. He also called for concerted effort to create public awareness on issues related to democracy, as a sine-quanon for effective participation of the people, particularly grassroots, in an on-going democratic process in the country and world at large.

Sun takes Ki-moon to work.

The head of the United Nations had a zero-emissions commute to work on Friday morning, by taking a solar-powered cab to the U.N. headquarters in New York.
Ban Ki-moon pulled up outside the U.N. headquarters in the unusual looking two-seater. Louis Palmer, the Solartaxi's inventor, was in the driving seat.The Solartaxi, built in Switzerland, is on a promotional tour around the world to raise awareness of climate change.The UN Secretary-General said the ride was "fantastic", adding that the Solartaxi sends a good message to those looking for creative and practical solutions to energy issues

Punishing Russia with sanctions senseless - Medvedev

Russia doesn't want to be isolated or to take part in a new arms race, but it's also not afraid of any sanctions that Western countries may impose following the war in South Ossetia. President Dmitry Medvedev made the statement during a meeting with Russian businessmen at the Kremlin.

"We do not need isolation or an arms race - this is a dead-end, the road to nowhere. We will not let ourselves be worn out like the Soviet Union. However, of course we will take all the necessary measures to strengthen our defence capacity," Medvedev said. He added that “if anyone tries to enforce sanctions, we realise that losses will bear a symmetrical nature." Some fifty senior government officials and leaders from the business community attended the meeting in Moscow. Discussing Russia’s further economic development, the President said the situation in the world has changed after the recent hostilities in South Ossetia and this couldn’t help but influence business in a range of ways. ”The Tbilisi regime unleashed a real war against the Ossetian people. Only thanks to the actions taken by Russia, was the war stopped. But before that, it managed to hurt Russians, Ossetians, Georgians - everyone. Thousands of people were killed or left homeless,” Medvedev said. He added: “Russia not only could, but was obliged, to stop that bloodshed and defend its citizens and peacekeepers. As the Supreme Commander-in-Chief, I could not have issued any other order.”Medvedev has also called on large Russian businesses to create a fund that would help South Ossetia get back on its feet after Georgian aggression in August. However, the main focus of the meeting was not Russia’s foreign policy, but the economic development of the country. “Founding an international financial centre in Moscow has become a more pressing issue,” he said.The President said that another strategic priority is bolstering small business. ”This concerns changes in the law and the way work is organised. Domestic modernisation remains our key focus. In light of the recent hostilities in Georgia we need to prepare a plan to additionally help our small businesses and all those working in the key sectors of Russia's economy,” he said.

Education sector needs rapid resuscitation

Last week a friend of mine asked me the equivalent of a popular television jingle:” ---ah student, oh students! Who can tell me what global-warming is?” To which the student fails to reply in English forcing the teacher to allow her to respond in Kiswahili. My friend wanted to know why it was almost impossible today to find sufficient English language sub editors aged between 25 and 45 in Tanzanian newsrooms. He lamented that currently the recruitment of subs was the signing up of tired people aged 50 onwards, which he called a dying workforce. This is a disturbing question because it connotes the gravity of the educational crisis we are currently facing. To doubting Thomas’s, however, educational standards have never foundered, if anything they have tremendously improved over the years. Unfortunately, that is not all the truth to this matter. In fact, the mentioned newsroom crisis is only a tip of a wider education crisis we are facing. I told my friend that we suffer from a generation gap in the education sector. But I realise that my readers would like to see the link between the falling mastery of the English language, as it were, and nose-diving educational standards. Fortunately, HakiElimu in the TV jingle above have said it all; there is an unmistakable mess in our education sector, which is why most big shots send their children to English medium schools, leaving public schools to the majority poor. But as Mwalimu Julius Nyerere once quipped, we should understand Her Majesty’s language, because English is the Kiswahili of the world, full stop.I say full stop because we cannot chew the bone that proved impossible to the hyena’s deadly molars. If cultural powers like Spain, Portugal and even France, not to mention other world powers are using it as a crucial language, who are we to do otherwise? Besides, this centuries-old language is production-oriented as opposed to other consumer-centred languages like our very own Kiswahili. Above all, the English language is custodian of rich educational insights and innovations in terms of science, technology and other academic exploits without which nations could live thousands of years behind. However, all this is beside today’s main agenda. My sole brief is to try to account for the above-mentioned generation gap, to suggest ways to minimize it and possibly to bury it all together. There is little doubt that we sustained many of our present educational injuries after the 1974 Universal Primary Education (UPE) programme, which emphasized the increased quantity of students at the chagrin of falling levels of quality. To achieve the political ambitions of the time, thousands of failed primary pupils were hastily recruited to teach their colleagues to pass the same examination that they had failed. Slowly but surely, wide cracks began showing in the sector but which went unnoticed and as such, un-repaired. It is surprising that authorities did not note the plummeting standards and fix them in time. Initially, mediocrity crept into the primary school level, whose output became increasingly sub standard, with most leavers failing to communicate in proper English and even in grammatically correct Kiswahili. Of course, this was an outright sign of falling educational standards. After saturating the lower levels, the poison went to the secondary schools where even more harm was done. With sloppy knowledge of the principal medium of communication, among students and amongst their teachers, the situation could not get worse.I would say that it took close to four long decades to undo our system, from the bottom to the apex. That, I told my friend, explains why newsrooms like other sectors in this country find it difficult to recruit enough proficient English language communicators. However, I was quick to point out that there has been a respite lately through the establishment of private English medium schools since the late 80’s. But it remains to be seen how far such a tiny drop in the sea could change the worsening situation.Yes, the situation is worsening because the newly introduced mass public schools throughout the country will only aggravate an already tense situation, for lack of qualified teachers, books, laboratories, libraries and the rest. The way forward, therefore, is first to admit our folly and quickly move forward methodically, placing more emphasis on the European language. I have argued repeatedly that a focused five-year programme could do the trick, by raising enough teachers and materials from places like Kenya, Uganda, the US, UK, India and so on. Certainly, the government can handle this at bilateral, multilateral or some other way around. That is the most optimal way forward to resuscitate our sickly educational system.

Zimbabwe power-sharing deal receives worldwide welcome

HARARE, Sept. 15 (Xinhua) -- The Zimbabwe ruling ZANU-PF and the opposition Movement for Democratic Change on Monday formally signed a long-awaited power-sharing agreement, ending the political deadlock which had been there since the March 29 presidential election.
The deal also paved the way for setting up of a new cabinet, which Zimbabwe had not had since the June 27 presidential run-off election.
The deal, which was hammered out Thursday after marathon talks, has been hailed worldwide.
The United Nations spoke highly of the deal soon after the two parties reached on Thursday
A statement issued from UN Secretary-General Ban Ki-moon's press office said "He hopes that this agreement will pave the way for a durable peace and recovery in the country and contribute to rapid improvement in the welfare and human rights of the people of Zimbabwe, who have suffered for long."
"He congratulates the parties for reaching agreement and commends the mediator, (South African) President Thabo Mbeki, for his tireless efforts to help them reach it," the statement said.
The African Union (AU) has also welcomed Zimbabwe's power-sharing deal between the two rival parties as a "turning point" for the nation
In a statement on Friday, AU said "The chairperson commends the Zimbabwean parties for arriving at this agreement which marks a turning point in the efforts aimed at promoting reconciliation, stability and fostering conditions conducive for the recovery of their country."
The African regional organization highly praised South African President Thabo Mbeki for his "skilful diplomacy and tireless efforts" as a mediator, who is mandate with the Southern African Development Community.
AU called on the world to fully support the hard-won deal.
"The chairperson urges the international community as a whole to do its utmost to support the implementation of this agreement and provide the requisite assistance to that end," the statement added.
Also on Friday, the European Commission hailed the power-sharing agreement between the main political parties in Zimbabwe.
"The European Commission welcomes this significant step forward," a spokesman for the European Union executive told a daily briefing.
"We will have to wait to learn much more about this on Monday. At this stage, we are cautiously optimistic," spokesman John Clancy said.
The spokesman also said that the foreign ministers from the EU member states would discuss economic aid and the future of sanctions on Zimbabwe on Monday.
For its part, the United States responded cautiously on Friday.
"We've seen the press reports about the deal, and we've started to try to get some details about the deal," State Department spokesman Sean McCormack told reporters.
"I'm going to withhold any more definitive comment until we have a full understanding of it," he said.
Lauding the deal, Kenyan Prime Minister Raila Odinga, whose country witness a similar deal to end the post-election crisis, said on Friday that he hoped the agreement will lead to a durable peace and an improvement in the people's living standards and human rights.
"Today the people of Zimbabwe breathe a little bit easier. The news of the power-sharing agreement that has just been concluded ends a long spell of fear, suffering and uncertainty that befell that great nation..." the prime minister said.
"We thank particularly President Mbeki of South Africa for the role he played in brokering the negotiations. Africa provided immense goodwill and its growing expertise in ensuring a mutually-acceptable deal," he said.
"Our continent and the world are looking forward to an expeditious implementation of the peace agreement so that Zimbabweans can achieve their great dreams of democracy, peace and justice," the prime minister added.
Editor: Bi Mingxin

Uganda to deploy fresh troops in Somalia amidst increased attacks

KAMPALA, Sept. 15 (Xinhua) -- The Ugandan military is to replace the 1,600 peacekeepers in volatile Somalia with a new contingent amidst increased attacks on the force, a military spokesman has said.
Maj. Paddy Ankunda, Uganda People's Defense Force spokesman told Xinhua by telephone on Monday that the new contingent, which is to be deployed 'soon', has finalized its training and is ready for Somalia.
"The attacks won't affect our deployment," said Ankunda, confirming reports that two Ugandan peacekeepers have been killed by Islamic militants in the last two days.
The militants are reported to have killed one peacekeeper on Monday, a day after the other was killed while on routine patrol in the capital of Mogadishu, bringing the number of those dead to seven since the East African country deployed in Somalia in March 2007.
Ankunda said the redeployment is a requirement by the African Union (AU) that forces on a peace keeping mission are rotated after every three months.
Uganda last month called for UN intervention in the lawless horn of African country, noting other African countries which promised to send troops have failed to honor their pledge and yet the situation is deteriorating.
The AU authorized the deployment of 8,000 troops but only 2,600peacekeepers from Uganda and Burundi are on the ground amidst escalating violence.
Since the Somali government backed by Ethiopian troops ousted the Islamist in December 2006, the militants have resorted to carrying out almost daily attacks against Ethiopian troops, Somali government forces and AU peacekeepers.
Somalia has lacked an effective central authority since the 1991 ouster of military strongman Mohamed Siad Barre.

Chinese spacemen no match for NASA – or are they?

Fears grow in the U.S. space agency over their ability to keep supremacy in space. Heated clashes between NASA Administrator Michael Griffin and the White House escalated after budget officials dropped his concerns over the Chinese space programme out of his draft statement to Congress.

In the draft speech Griffin warned in strong terms that Beijing’s space ambitions may hit hard on the U.S. image worldwide."A Chinese landing on the Moon prior to our own return will create a stark perception that the U.S. lags behind not only Russia, but also China, in space," he wrote.He added: "The bare fact of this accomplishment will have an enormous, and not fully predictable, effect on global perceptions of U.S. leadership in the world."The White House Office of Management and Budget (OMB) reviewed the document and deleted several passages before it went to Congress in March dropping out most of its sense of urgency, reports the Washington Post.Griffin was quick to tone down his comments after the original text leaked last week, saying he valued advice from the OMB and the White House Office of Science and Technology Policy (OSTP), but two senior NASA officials told the newspaper that it accurately reflected the growing strains.China, the prospect space nationChina became the third nation in the world capable of launching manned space vehicles in 2003. Yang Liwei spent 21 hours in Earths orbit in the Shenzhou 5 spacecraft marking a remarkable breakthrough for the country. The second launch took place in 2005. A third one is scheduled for September 25 this year.Among Beijing’s more distant space projects is a mission to the Moon. China has already launched its first lunar orbiting spacecraft Chang'e 1, which probed space between Earth and the Moon and mapped spots for future landings. A manned expedition is planned for 2024.No American crew on the ISS?The tension between the U.S. and Russia that followed the South Ossetian war has cast doubts over the American mission to the International Space Station. NASA scraps the Space Shuttle programme in 2010, with only the Russian Souz spacecraft remaining to take the ISS crews into orbit for at least five years.With the relations between the two countries at a low, there are fears that the U.S. Congress may ban NASA from buying the rides from Russia thus making Americans drop out of the multibillion dollar project. Griffin was very vocal when voicing his concerns over the issue.

The meltdown

Lehman files for bankruptcy. Merrill is bought by Bank of America. The Fed and major banks expand lending. Anxiety lingers.

NEW YORK (CNNMoney.com) -- Wall Street was a vastly different world Monday from what it looked like just days earlier, following one of the most harrowing days in the history of U.S. financial industry.
In less than a day, Lehman Brothers, one of the nation's oldest investment banks, filed for bankruptcy - the largest ever announced in the United States. And Bank of America executed a bold and swift $50 billion takeover of Merrill Lynch, while the fate of other brand-name financial institutions remained in doubt.
Anxiety was palpable in the financial community Monday. The Dow Jones industrial average plunged more than 2.5% just after the opening bell, before paring some of those losses.
"The magnitude of the surprise fits with what we are seeing in the market today," said Art Hogan, chief market strategist for Jefferies & Co.
Driving much of the fear was a decision by Lehman to file for bankruptcy under Chapter 11 with the U.S. Bankruptcy Court for the Southern District of New York. Lehman, whose fate was in doubt for much of last week, made its intentions known shortly after midnight as talks aimed at saving the 158-year-old firm failed.
Lehman (LEH, Fortune 500) shares, which lost 94% of their value this year as of Friday, were nearly worthless after markets opened Monday.
Different divisions of Lehman offered reassurances to nervous clients Monday. Still, both analysts and rating agencies slashed their assessment of the once-mighty investment bank.
Lehman's endgame capped what proved to be a long weekend for top Wall Street executives and regulators, who held marathon talks to try to craft a rescue plan for the embattled investment bank.
Many had hoped a buyer would emerge, most notably the British bank Barclays or Bank of America. Instead, both suitors pulled out, with Bank of America (BAC, Fortune 500) instead entering merger talks with the brokerage giant Merrill Lynch (MER, Fortune 500). By early Monday, the two had announced that BofA had bought Merrill for $50 billion in stock.
Merrill, known for with its famous bull logo, has been an icon of Wall Street and investing in America. Still, billions in losses in the last year due to fallout in the U.S. mortgage market proved too much for the 94-year old firm.
Certainly, the disappearance of Merrill Lynch and Lehman will result in heavy job losses in the already hard-hit financial services industry.
Lehman Brothers employees, which totaled some 26,000 as of the end of June, were seen carting off their belongings from corporate headquarters in midtown Manhattan as early as Sunday evening. Still, company officials at either Lehman or Merrill provided little indication about how many jobs would be lost as a result of Monday's announcement.
Wall Street firms have lost close to 10,000 jobs, or more than 5% of the work force, so far this year, according to the latest figures from the New York State Department of Labor.
Confident in 'challenging' time
And the fears were not isolated to Lehman. Investors found themselves knee deep in other concerns.
Shares of the insurance giant American International Group (AIG, Fortune 500) lost more than half their value Monday as the market nervously waited for the company to announce a restructuring plan. The move, which was rumored as early as Sunday evening, is expected to include a sale of part of its business to raise desperately needed cash and boost investors' confidence, according to published reports.
The company has suffered steep losses in recent months and now faces the possibility of having its credit rating cut.
Washington Mutual (WM, Fortune 500), the nation's largest savings-and-loan, saw its shares tumble 33% in early trading, amid concerns that it might not have enough capital to ride out the crisis.
Other major financial institutions took pre-emptive steps to try and calm both investors and employees.
Citigroup (C, Fortune 500), which has been one of the hardest hit firms in the ongoing credit crisis due to billions of dollars in losses, stressed the underlying health of the firm Monday morning.
In an internal memo to all Citigroup employees, newly installed CEO Vikram Pandit reiterated the firm's strength and previously announced restructuring efforts aimed at righting the troubled financial firm.
"We are confident about the future despite a very challenging time," Pandit said.
Hoping to provide some comfort to Main Street, President Bush acknowledged the market turmoil Monday, but said that the government was working to correct the problems.
"We are working to reduce disruptions and minimize the impact on the [broader economy]," said Bush, speaking at the White House Rose Garden.
The weekend's developments are certain to result in very real impacts to everyday Americans. Having suffered billions of dollars in losses and more looming ahead, financial institutions will most likely make it more difficult for consumers to gain access to credit including mortgages, auto loans and credit cards and most expensive to boot.
Drastic measures
The Lehman and Bank of America-Merrill news, while important, proved not to be the only development over the weekend.
In order to try and calm the markets, the Federal Reserve announced plans late Sunday to loosen its lending restrictions to the banking industry.
The Fed said it would expand its short-term lending to banks by starting to take all investment-grade debt as collateral - instead of just Treasurys and other high-grade securities.
"The steps we are announcing today, along with significant commitments from the private sector, are intended to mitigate the potential risks and disruptions to markets," said Fed Chairman Ben Bernanke.
Similarly, a consortium of 10 leading domestic and foreign banks had agreed to create a $70 billion fund to lend to troubled financial firms. The group, which included, among others, Goldman Sachs (GS, Fortune 500), Citigroup, Barclays and Morgan Stanley, agreed to pony up $7 billion each to create a $70 billion lending pool to help troubled institutions.
Treasury Secretary Henry Paulson, who along with Bernanke, has spearheaded efforts to help get the U.S. housing market and the broader economy back on track, applauded the steps taken by regulators and top banking executives.
"These initiatives will be critical to facilitating liquid, smooth functioning markets, and addressing potential concerns in the credit markets," Paulson said in a statement.
During the weekend talks, the Treasury Department stressed its opposition to using any government money to help finance a takeover, restructuring or bailout of Lehman.
Top banking regulators, including the Federal Reserve, faced heavy criticism from lawmakers following the bailout of Bear Stearns in mid-March.
The Fed helped engineer a fire sale of the firm to JPMorgan Chase (JPM, Fortune 500), agreeing to put taxpayer funds at risk by guaranteeing $29 billion's worth of potential losses on Bear Stearns' portfolio.
Sunday's news also garnered attention from the campaign trail, as both candidates weighed in. Sen. John McCain praised the Fed and the Treasury for avoiding engaging in a bailout of Wall Street, blaming the Lehman collapse on "ineffective regulation and management."
Sen. Barack Obama called the developments "troubling," stressing the need to modernize regulation that oversees both Wall Street and broader financial markets

LEHMAN BROTHERS BANKRUPTCY

Details of Zimbabwe deal emerge

Zimbabwe's President Robert Mugabe is to retain control of the army and chair cabinet meetings, according to leaks of Thursday's power-sharing deal.

Mr Coltart said that Mr Mugabe would have “greatly reduced powers to those he enjoys today”. There would also be two largely ceremonial vice-presidents from Mr Mugabe’s Zanu (PF).
As prime minister, Mr Tsvangirai “does not have absolute power but he does have substantial power”, Mr Coltart, who was present at the launch of the MDC nine years ago, said.
Mr Tsvangirai is to advise Mr Mugabe on all future appointments such as judges and ambassadors, though whether he will be able to compel the president to heed his advice is uncertain.
Underneath Mr Tsvangirai will be two deputy prime ministers, one from MDC-T, Mr Tsvangirai’s faction, and one from MDC-M, a rival faction headed by Arthur Mutambara.
Mr Coltart admitted the arrangement for conducting government business – at the heart of the impasse of the last weeks’ negotiations - was “slightly cumbersome”. Mr Mugabe is to chair the Cabinet, while Mr Tsvangirai will be the vice-chair. The Cabinet will largely reflect the votes cast for the various parties in the March election – in which Zanu PF claims it got the most votes, if not the most parliamentary seats.
Zanu PF will have 15 seats while MDC-T will have 13 and MDC-M three.
“If the two MDC factions work together, which they must in the national interest, they will enjoy a majority in Cabinet,” said Mr Coltart, who is a senator for Mr Mutambara’s faction.
The work of the Cabinet will be overseen by a council of ministers headed by Mr Tsvangirai. A source close to the talks quoted by Agence France-Presse said that all decisions woul
d be made by the council, though it would have to report back to Mr Mugabe.

“Power will be shared, no one will get more power than the other party, even (in) the hiring and firing of cabinet members,” the source explained.
Western powers reacted to news of the deal with caution. The European Commission said it welcomed “this significant step forward“ but said it would have to wait until full details of the agreement were unveiled.
“At this stage we are cautiously optimistic,” said John Clancy, commission spokesman on humanitarian aid and development issues.
The European Union said it was reconsidering its plans to extend its sanctions against Zimbabwe, following the Harare deal, according to the French EU presidency.

But a presidency official said the deal did not exonerate those guilty of committing pre-election violence. The MDC and human rights groups have accused Mr Mugabe’s militias of a brutal campaign of intimidation ahead of the presidential run-off vote.
“They are not going to escape responsibility,” the official said. “You need to bear that in mind as well.”
Within Zimbabwe, there was some scepticism as to how much control Mr Mugabe would really relinquish.
Lovemore Madhuku, head of the National Constitutional Assembly Pressure Group, said the deal was “more of a capitulation by the MDC”, which was coming in as a “junior partner”. Mr Tsvangirai would only have “some cosmetic executive authority”, he speculated.
John Makumbe, a political analyst and critic of Mr Mugabe, said: “The deal will hold depending on who will have control of the cohesive machinery of the state. If these are still in Mugabe’s hands the deal will unravel and we will soon be back to the negotiating table.”
Yesterday, analysts said that machinery was still firmly under Mr Mugabe's control. “The infrastructure for state-sponsored violence is still in place”, said Martin Rupiyah, director of African research at Cranfield University.
Mr Coltart, the senator from Bulawayo, acknowledged the “long and treacherous road” ahead, saying that the grave humanitarian and economic crises facing Zimbabwe were enough to test even a united government.
Zimbabwe’s economy has imploded over the past decade with inflation soaring to its current rate of 11.2 million per cent. A third of the country’s 12 million citizens have fled and those who remain face chronic food shortages and health problems. Infrastructure has all but collapsed, Aids is rampant and life expectancy is now the world’s lowest.
Mr Coltart said: “The new Cabinet that will have to address these challenges is composed of protagonists – virtually all of the Cabinet Ministers to be appointed by the MDC T and M have at some stage in the last 9 years been brutalized on the instructions of those they will now have to work with.
“Zimbabwe remains highly polarised and it will take statesmanship on all sides to make this work.”

MBEKI FACES PRESSURE TO RESIGN

South Africa's President Thabo Mbeki has come under renewed pressure to resign after a High Court judgement.

JOHANNESBURG (AFP) — A court judgment implying South African President Thabo Mbeki's government meddled in a graft case against his chief rival will be discussed by the ruling party this week, officials said Sunday.
"We will look into the judgment and the implications thereof," African National Congress (ANC) secretary-general Gwede Mantashe told AFP, saying there was no specific meeting to discuss Mbeki.
A South African high court on Friday threw out a corruption case against party leader Jacob Zuma, paving a clear route to him becoming the country's president in next year's elections.
Weekend media reported the ANC would discuss Mbeki's future, after the court pointed to "baleful political influence" in the decision to charge Zuma.
Mbeki would "be pushed on (to) his sword if he can't fall on his sword," an unnamed ANC official was quoted as saying in the Sunday Times.
The Sunday Independent reported moves were underway to install Zuma as president without an early election being called, the newspaper said.
The City Press, quoting the ANC chief whip Nathi Mthethwa, said ANC members of parliament would caucus on how to deal with Mbeki when the house reconvened in two weeks.
Fired by Mbeki as deputy president in 2005 after being implicated in graft, he was recharged 10 days after he ousted Mbeki as party president last December.
"The timing of the indictment (...) after the President suffered a political defeat at Polokwane was most unfortunate," Judge Chris Nicholson told the Pietermaritzburg high court Friday.
Zuma's assertion of "political meddling in his prosecution" was not incorrect, the judge said.
The ruling was handed down the day after Mbeki brokered a deal in Zimbabwe's political crisis which he is mediating on behalf of the region.
The deal is expected to be officially signed in Harare on Monday.
On Friday, Mbeki's office said it was "certainly not aware of any fact that may have led to the conclusion that there was executive interference."
The presidency would study the judgement further, it said.
In Friday's case the judge stressed the decision to throw out the case was not a reflection of Zuma's guilt or innocence but a technical decision based on Zuma' right to make representations before being recharged.
The ANC will hold two high level meetings this week.

Nigeria militants warn of oil war

Militants in Nigeria's oil-rich Niger Delta region say they have "declared war" on the government after battling security forces guarding facilities.

The Movement for the Emancipation of the Niger Delta (Mend) said it was responding to attacks by the military.
The military said it had repelled several Mend attacks. Both sides say their opponents suffered heavy losses.
Mend's violent campaign for a bigger part of the area's oil wealth has cut Nigeria's oil output by more than 20%.
Mend militants are the largest of several armed groups operating in the impoverished delta region. They frequently kidnap foreign oil workers and sabotage oil installations and pipelines.
Nigerian President Umaru Yar'adua is under pressure to crack down on the militants and make the delta safer for international oil firms.
Lawless region
In an email released by Mend, the group said it had launched an "oil war" on the government in response to what it described as unprovoked aerial attacks on its bases in the Niger Delta.
The group said its heavily-armed fighters had fanned out in hundreds of boats to attack oil installations in Rivers state.
"The operation will continue until the government of Nigeria appreciates that the solution to peace in the Niger Delta is justice, respect and dialogue," the group said.
An oil platform at Kula, operated by oil giant Chevron, was among the facilities targeted, Mend said, adding that 22 Nigerian troops had been killed in the attack.
A Nigerian military spokesman said they had repelled an attack on an oil platform operated by the US company, Chevron. He said the militants had suffered heavy casualties.
The Niger Delta region is the source of most of the Nigerian government's income, yet it remains blighted by poverty and corruption.

Make use of bank's loan facilities, urges JK

President Jakaya Kikwete has asked Simanjiro residents to come up with business proposals to access loans from the newly-inaugurated National Microfinance Bank (NMB) branch in the district. He told a public rally at Orkesumit on Friday that banks and other financial institutions were willing to support people's business initiatives provided they submitted viable proposals. "Do not just go to the bank empty handed and ask for loans. You need sound business proposals to secure the loans," said the president. He also advised them to form small groups that would evenly give them access to credit facilities. President Kikwete urged the residents to develop a culture of saving part of their income in the banks than in their houses, which, he said, was risky.The NMB branch is the first banking institution in the district. Previously, one had to travel to Arusha or Kiteto to get such services. Meanwhile, the NMB Chairman, Mr Misheck Ngatunga, said the Simanjiro branch was one of the 15 new branches to be inaugurated through the country. He said other branches to be launched this month include those in Kilindi, Rukwa, Kilole, Misenyi, Mvomero, Mukikombe and Longido. More branches will be opened next month in Tandahimba, Namtobo, Chato and Mkuranga. By December, Mr Ngatunga said his bank will have also opened branches in Rorya, Bahi and Mkunyumbu.

University dons worry over own handiwork

The Engineers Registration Board (ERB) has hired independent consultants from the University of Dar es Salaam Bureau of Industrial Cooperation (BICO) to examine the safety of the 11-storey building at Zanaki Street in Dar es Salaam. The decision follows fear and widespread rumours that the building might collapse anytime – since it has started leaning on adjacent buildings.

The structure was put up some eight years ago - and it is largely used as a residential complex. The ERB Registrar, Mr Steven Mlote and other officials of the board yesterday visited the building and thereafter told the 'Daily News' that the ERB was concerned with people’s fear and therefore they had decided to hire consultants to establish its safety. He said they had questioned engineers who constructed the building but whose explanations were not satisfactory. The registrar noted that Bico would examine generally all parts of the building and conduct non-destructive test. Mr Mlote however could hesitate to show his doubt over capacity and size of the elevator which is very small and with only one door. On Wednesday and yesterday scores of people thronged to the area to witness ‘what could have been another incident of building collapse in the city’. Some families staying in the building said that it had always been nightmarish and worrisome to use the elevator and therefore embark on cumbersome and tiresome task of climbing the building on foot. The building seemed to lean on the other four-storey building. According to ERB officials, the two buildings, should at least, be three metres apart. Families staying in the building were unrestful and panicked as the crowd was looking at the building. “Our life here is at jeopardy, we do not know what will happen to us as rumours are everywhere that the building is going to collapse. We appeal to the government to act fast and provide advice on what to do,” said one tenant. One passer-by, Hassan Salum, said that the government should order evacuation of tenants from the building while waiting for consultants to do their tasks. About two months ago on the same Zanaki Street a ten-storey building under construction collapsed, claiming life of one person.Information have it that there are at least 100 buildings in the country which are at risk of collapsing.

End to World Bank's Chad oil deal

The World Bank has cancelled an oil pipeline deal with Chad after a dispute with the government over failed pledges to use profits to tackle poverty.

The bank said Chad had also failed to use revenues on health and education.
It said Chad had paid the outstanding balance of $65.7m (£37m) under a $140m loan agreement, after talks with the government of President Idriss Deby.
Chad called the decision "practically consensual" and that relations would continue in non-oil sectors.
The pipeline was seen as a test case for how Africa's oil wealth could benefit the poor if spent properly.
'Improve governance'
The central African country is expected to earn about $1.4bn in oil revenues this year.
"Regrettably, it became evident that the arrangements that had underpinned the bank's involvement in the Chad-Cameroon pipeline project were not working," said Michel Wormser, the bank's director of operations for Africa.
"The bank therefore concluded that it could not continue to support this project under these circumstances."
But he said future cooperation was possible "if the government of Chad wishes to focus its energies on a programme to support inclusive development to overcome poverty, assist displaced people and improve governance".

Sudan election 'could be delayed'

A minister in South Sudan's government has said nationwide elections due by July 2009 could be delayed by at least six months.

Minister for Presidential Affairs Luka Biong said torrential rain and a series of logistical problems could make it difficult to vote as scheduled.
The polls, agreed on in a 2005 peace deal, would be Sudan's first democratic elections in more than two decades.
The peace deal ended a 21-year civil war between the north and the south.
"Practically, it won't be feasible to have them [elections] by July," Mr Biong said, according to Reuters news agency.
He is from the SPLM party of former rebels, which is planning to contest the polls against the NCP of President Omar al-Bashir.
The two parties signed the 2005 deal and share power at a national level but analysts say relations remain tense.
In July, a law was passed, paving the way for the elections.
The peace deal gave the south a semi-autonomous government and provided for a referendum on independence for the south by 2011.
Correspondents say any delay to the elections would also raise worries over the timing of the referendum.

SA court rejects Zuma graft case

A South African court has ruled that a corruption case against ruling party leader Jacob Zuma cannot go ahead.

He was facing charges of corruption, fraud and money laundering relating to a multi-billion dollar 1999 arms deal.
A judge in Pietermaritzburg said there was reason to believe the decision to charge him was politically motivated.
His words were drowned out by cheers of supporters outside the court. The decision means Mr Zuma is likely to become president in polls next year.
The BBC's Jonah Fisher in Pietermaritzburg said there were scenes of celebration outside the court, where thousands of people had gathered - some since Thursday evening for an all-night vigil.
After leaving court, Mr Zuma addressed the crowds, and led them in his trademark anti-apartheid guerrilla song, "Umshini wami" (Bring Me My Machine-Gun).

"This is a lesson that we should never keep quiet when those in power break the law," he told the crowds in his mother-tongue, Zulu.
Judge Chris Nicholson said the decision to prosecute without consulting Mr Zuma, 66, had been invalid and ordered the charges to be set aside - for the moment.
"I must repeat that this application has nothing to do with the guilt or otherwise of the applicant. It deals only with the procedural point relating to his [Zuma's] right to making representations before the respondent [the prosecution] makes a decision on whether to charge him," AFP news agency quotes him as saying.

Expulsions stoke US-Venezuela row

A series of tit-for-tat expulsions has left the US without ambassadors in three Latin American countries.

Bolivia and Venezuela have expelled their US envoys, accusing Washington of trying to oust Bolivia's government.
Washington has responded by throwing out envoys from Bolivia and Venezuela and freezing the assets of three aides to Venezuelan President Hugo Chavez.
Meanwhile, Honduras has refused the credentials of a new US ambassador, postponing his appointment.
US officials said the actions of Venezuela and Bolivia showed their leaders' "weakness and desperation".
The BBC's Emilio San Pedro said relations between the US and Latin American opponents such as Mr Chavez had seemed to be on a holding pattern.
But the situation has changed in a matter of days, he says.
This week's arrival in Venezuela of two Russian bomber planes taking part in a military exercise is not thought to have helped the situation.
And with more joint military exercises in the pipeline, our correspondent says it could take a while for tensions to subside.

WAZIRI MKUU MH.PINDA ATAKA WATANZANIA WACHUNGUZE FURSA ZA KIBIASHARA ZILIZOPO EAC

WAZIRI MKUU Mizengo Pinda amewataka wafanyabiashara wa Kitanzania watakaozuru nchi za Kenya, Uganda, Rwanda na Burundi wachunguze fursa zilizopo kwenye nchi hizo ili wenzao waweze kufaidika pia.Amesema hayo leo mchana wakati alipofanya mazungumzo na ujumbe wa wafanyabishara Watanzania watakaofanya ziara katika nchi hizo nne kuanzia Septemba 7-16, 2008. “Katika ziara hii mjitahidi kuangalia ni maeneo gani tuna fursa kubwa ya kushindana na wenzetu ili nasi tuwezeshe wajasiriamali wetu wengi kuingia katika biashara za kimataifa,” alisema Waziri Mkuu alipokutana nao kwenye ukumbi wa Karimjee, jijini Dar es Salaam.Akizungumza na wawakilishi wa wafanyabiashara 50 watakaowepo kwenye msafara huo, Waziri Mkuu alisema: “Nyie ndio wenye uwezo wa kuongoza biashara, Serikali ina jukumu la kujenga mazingira mazuri yatakayowawezesha kufanya biashara zenu kwa utulivu na amani. Na hilo nawahahakikishia tunalifanya na tutaendelea kulifanya. Ainisheni vikwazo tufahamisheni Serikalini ili tuweze kuchukua hatua za kuondoa vikwazo hivyo.” Waziri Mkuu alisema kwa kubuni na kukubali kufanya ziara hiyo, wafanyabiashara watapanua uelewa wao wa biashara, watapata mbinu mpya za kibiashara na ni pia ni wakati muafaka wa kuboresha miundombinu ya kufanya biashara zao. Wafanyabiashara hao wanatoka mikoa ya Dodoma, Kilimanjaro, Tanga, Morogoro, Arusha na Dar es Salaam.Aliwataka waangalie fursa za uwekezaji kwenye viwanda ambako hali si nzuri ikilinganishwa na nchi za jirani. “Hapa kwetu ni kweli tuna fursa nyingi na takwimu za uwekezaji zinaonyesha kuongezeka, lakini tujiulize kweli viwanda vikubwa tunavyo vingapi na vinazalisha kiasi gani?”Alitoa mfano wa Kenya ambayo ina viwanda vikubwa 900 na kati ya hivyo 200 ni vya wawekezaji wakubwa wa nje (Multinationals) ambavyo vinamilikiwa kwa ubia na wananchi na wawekezaji wa nje pekee.Alisisitiza haja ya kutafuta fursa za uwekezaji kwenye sekta ya kilimo na zile zitakawezesha kuleta mapinduzi katika kilimo. “Tunahitaji kuanza kilimo cha mashamba makubwa yanayotumia teknolojia za kisasa zenye tija, yaani Kilimo cha Kibiashara (Commercial Farming).Akitolea mfano sekta hiyo, alisema Kenya wameanza kilimo hiki muda mrefu kwa vile wana mashamba makubwa ya Kahawa, Nafaka, Maua na Chai. “Pia, Kenya na Uganda wana uzoefu mkubwa wa kuzalisha mbegu bora za nafaka… Tanzania tunaagiza asilimia 75 ya mahitaji yetu ya mbegu bora kutoka nje na sehemu kubwa inaagizwa kutoka Kenya… hili ni eneo muhimu sana ambalo tunapaswa kujifunza kutoka kwao ili tubadili kilimo chetu kiwe cha tija kubwa na cha kibiashara.”Aliwasihi wafanyabiashara kujitokeza kwa wingi kushiriki katika ziara hii ambayo, alisema ni ziara itakayoandika historia mpya kwa wafanyabiashara wa Tanzania. “Ni ziara ya kuwafungua macho wafanyabiashara. Ni ziara ya kujifunza na kuwafanya wafanyabiashara kujiamini zaidi,” alisisitiza.Alisema mbali na kuangalia nchi hizo nne za Afrika Mashariki, wafikirie pia soko la SADC kwa sababu Tanzania ni wanachama wa jumuiya hiyo na akawakumbusha wasiisahau nchi ya DRC kwani ina wakazi zaidi ya milioni 60. “… hili nalo ni soko kubwa na eneo la kibiashara na uwekezaji, tuandaae mkakati wa kutambua fursa zilizopo katika Ukanda wa SADC bila kuwasahau jirani zetu wa DRC… Tuondokane na mawazo potofu kuwa masoko yako kwenye nchi zilizoendelea tu,” alisema. Wakiwa katika ziara hiyo, wafanyabiashara hao wanatarajiwa kujikita zaidi katika sekta saba ambazo ni miundombinu yaani barabara, reli na usafiri wa angani na majini (Infrastructure Development of Airports, Seaports and General Transportation); Nishati na Madini (Energy & Mining) na Biashara (Trade – Import/Export).Nyingine ni Usindikaji na biashara ya mazao (Agribusiness); Hoteli na Utalii (Hotel & Tourism); Viwanda, Ujenzi na Uhandisi (Manufacturing, Construction & Engineering); na Sekta ya Huduma za Fedha (Financial Services).

BREAKING NEWS

Zimbabwe rivals agree unity deal

Zimbabwe's opposition leader Morgan Tsvangirai says a power-sharing deal has been reached with President Robert Mugabe in Harare.

"We've got a deal," said Mr Tsvangirai, the leader of the opposition Movement for Democratic Change (MDC) party.
South African President Thabo Mbeki, who has helped broker the talks, said an agreement would be signed on Monday.
Mr Mugabe has not yet commented. Weeks of negotiations have faltered over how the two sides are to share power.
The government and MDC have already agreed Mr Tsvangirai will be named prime minister and Mr Mugabe will remain as president.
Mr Mbeki told a news conference: "An agreement has been reached about all the matters on the agenda of the negotiations."
Mr Mugabe won a controversial June presidential run-off election unopposed after Mr Tsvangirai withdrew, claiming his supporters were the brunt of a state-sponsored campaign of violence.
In the first presidential election in March, Mr Tsvangirai gained more votes than Mr Mugabe, but official results say he did not pass the 50% threshold for outright victory.

Deadline for Kenyans to quit camp

Some 10,000 Kenyans displaced in electoral violence earlier this year have been given until Friday morning to leave the camp where they are living.

A BBC reporter in Eldoret in the Rift Valley says riot police have been deployed to the camp in a showground.
In May, the unity government started to resettled the displaced, but many say they are too scared to return home.
Eldoret's district commissioner told the BBC many of them were opportunists, waiting for handouts and must leave.
Leonard Ngaluma said most families in the Eldoret camp had been given 10,000 Kenyan shillings ($140) two weeks ago to help them make the move.

"The moment we gave that money, which we did about two weeks [ago], we had a very clear understanding that they ought upon receiving that amount to move out of the showground," he told the BBC's Focus on Africa programme.
But the BBC's Wanyama wa Chebusiri in Eldoret says many of those at the camp say they have not received the money and have nowhere to go.
"I am confident that they will leave," Mr Ngaluma.
"I have no doubt in my mind that we shall be able to close the showground without having to use excessive force."
Eldoret is in the Rift Valley, which was the area hardest hit by the clashes following disputed presidential polls in December 2007.
About 1,500 people died in the violence and 600,000 were displaced.

Zambian election date announced

Zambia will hold an election on 30 October to choose a successor to President Levy Mwanawasa, who died in a French military hospital last month.

The poll was announced by the acting President, Rupiah Banda, who will be the candidate of the governing Movement for Multi-party Democracy (MMD).
He is likely to face a strong challenge from opposition leader Michael Sata, who narrowly lost the election in 2006.
Mr Mwanawasa, who had led Zambia since 2001, suffered a stroke in June.
Under the constitution, an election must be called within 90 days of the post of president becoming vacant.

Hopes grow for deal on Zimbabwe

Zimbabwean President Robert Mugabe and opposition leader Morgan Tsvangirai have resumed talks in Harare, amid growing hopes of a power-sharing deal.

"We are optimistic, we are never pessimistic," Mr Mugabe said as he arrived at the Harare hotel.
On Tuesday, both men both said they hoped to address the outstanding issues between them on Wednesday.
South Africa's President Thabo Mbeki has stayed in Harare to lead the talks, delaying a summit in Swaziland.
In a sign of Zimbabwe's economic crisis, some shops will be allowed to sell goods in foreign currency, the government has announced.
With annual inflation running at an official 11,000,000%, the Zimbabwe dollar is rapidly depreciating. Last month, the currency was revalued, so Z$10bn became Z$1.
Security role
"I must say that there is a positive development," Mr Tsvangirai said on Tuesday evening after two days of talks.

US Bolivia ambassador 'expelled'

The US ambassador to Bolivia has been ordered to leave the country by President Evo Morales, reports say.

Mr Morales accused Philip Goldberg of supporting the opposition and encouraging the division of the country.
He said the foreign minister would inform Mr Goldberg that he "should return to his country at once".
Bolivia has seen large protests in recent weeks by opponents of Mr Morales' economic and social policies.

Kikwete inaugurates AU council assembly...

African Union Chairman President Jakaya Kikwete yesterday launched the first Permanent General Assembly of the continental body`s Economic, Social and Cultural Council (ECOSOCC). In an address to members of the council at a ceremony in Dar es Salaam, he described the landmark development as a measure of the AU leaders` commitment to abiding by the letter and spirit of the legal requirements the body ought to meet. ``The Constitutive Act of the AU is designed to be a partnership between governments and all segments of civil society in the African continent,`` said the AU chairperson. He explained that, by establishing ECOSOCC, the AU was creating a people-oriented, people-centred and people-driven community in the AU in which all stakeholders were effectively represented. ``This is the first time that an institution such as the AU that began as an inter-governmental organisation is incorporating non-state actors as full partners in the policy making enterprise,`` said the AU Chairman. ``Our ECOSOCC is not an allied or associated body of the AU. It is more or less a civil society parliament made up of elected representatives of civil society organisations of member states and the regions of the continents,`` he added. He further noted that the council`s birth meant that civil society organisations in Africa have now got a formal platform where their voices could be heard and considered. The council`s newly elected Presiding Officer, Akere Muna of Cameroon, said ECOSOCC would concentrate on the sensitisation of the people of Africa on the challenges facing the continent.

Israeli PM 'should be indicted'

Israeli police have formally recommended to prosecutors that Prime Minister Ehud Olmert be indicted in a corruption investigation.

The decision about whether to indict Mr Olmert now rests with Attorney General Meni Mazuz.
Mr Olmert has already announced that he will resign later this month because of the multiple corruption investigations he is facing.
He has consistently denied all the accusations against him.
The ruling Kadima party is to hold a leadership vote on 17 September.

The police said they had evidence showing Mr Olmert allegedly accepted tens of thousands of dollars in bribes from American businessman Morris Talansky.
Mr Olmert is also accused of filing duplicate claims to government agencies for travel expenses.
The accusations date back to his time as mayor of Jerusalem and minister of trade and industry before he became prime minister in 2006.
Mr Olmert's lawyers said the police recommendation to indict the prime minister was meaningless.
"The only person authorised by the law to decide whether to indict a prime minister is the attorney general. He has the authority and he bears the responsibility over the issue," his lawyers said in a statement.
Mr Mazuz is expected to make his decision in the next few weeks.

Prospects for wealth ‘lure illegal traders’

The influx of illegal immigrants in Tanzania mainly from neighbouring countries and farther afield is due to the country’s wealth in natural resources, investment and business opportunities coupled with prevailing peace and tranquillity. Authoritative sources said in Dar es Salaam yesterday that illegal immigrants who operate in syndicates involving officials in government offices and institutions were stealing billions of shillings through illegal exports of natural resources. Those engaged in trading (goods and services) take their money plus government revenue (unpaid taxes and levies) out of the country by getting international currencies from bureau de change outlets. Government records show that illegal immigrants come from Ethiopia, Somalia, China, India, Thailand, Korea, Europe, Kenya, Uganda, Rwanda, Burundi, Zambia, Democratic Republic of Congo (DRC), Mozambique and Zimbabwe. Others come from former communist countries. The Director of Immigration Services, Mr Kinemo Kihomano, confirmed the presence of scores of illegal immigrants in the country. He said there was a shortage of immigration officers to stem the rot. He said that the directorate was operating with only one third of the required number of immigration officers. He said that some illegal immigrants engaged in minerals (mainly gemstones), forest products (logs, sleepers), trophies and the hotel industry. “In order to alleviate the current problem of illegal immigrants, Tanzania needs 9,000 immigration officers but we have only 3,000 of them and some of them are not honest,” he said. He appealed for cooperation from members of the public. He said the 'wananchi' should report to the nearest police station or any security organ any sighting of people they suspect to be illegal immigrants. A total of 1,646 illegal immigrants were netted by immigration officers at different parts of the country since early this year. The group comprised 1,000 Ethiopians, two Eritreans and 644 Somalis. Mr Kihomano said that out of the 1,000 Ethiopians, 256 were recently escorted to border points of Horohoro and Namanga where they were received by their relatives. He said that efforts to locate relatives of the remaining immigrants were going on. Mr Kihomano said that consultations between the governments of countries from where the illegal immigrants hail and Tanzania on how to take them back home helped Tanzania escape from paying for air tickets costing 600 US dollars (about 700,000/-) each.

Kikwete in Sudan

President Jakaya Kikwete was due in Khartoum, Sudan yesterday evening for an official visit during which he would hold talks with his counterpart, Omar Al-Bashir.

President Kikwete is also scheduled this morning to meet the Sudanese Vice- President, Ali Osman Mohamed Taha and the Chairman of the National Assembly, Ahmed Ibrahim Eltabir. Presidents Kikwete and President al-Bashir will later hold a joint news conference. He is expected to fly back home in the afternoon. Details on President Kikwete's tour were not made available, but it is understood that the crisis in the Darfur region would prominently feature during the visit.

SMART SPENDING

Want fuel economy? Consider a good old stick shift

Better gas mileage can be had from what used to be standard in cars -- the manual transmission, or stick shift. But how many drivers know how to use one these days?
It's a lost art, but a very efficient one. For its October issue, Consumer Reports bought two versions of seven different cars -- ranging from a $15,800 Scion to a $24,000 Mini Cooper -- and found a gain of 2 to 5 mpg with a standard versus automatic transmission in the same model.
Extra bonus: The three-pedal versions were not only faster, they were $800 to $1,200 cheaper.
This sounds great. A Green Lantern piece at Slate says a very proficient driver can improve gas mileage by about 15% -- cutting annual carbon dioxide emissions by two-thirds of a metric ton. (Green Lantern also informs us of this shocking fact: A gallon of gas puts out 19.564 pounds of carbon dioxide.) Plus, your brakes will last longer, and your transmission will be cheaper to repair or replace.
Also, we know from experience that stick shifts are more fun to drive. Our current new-to-us car, purchased about four years ago, is our very first automatic.
Plus, as this post at DigitalJournal.com suggests, run-of-the-mill car thieves don't know how to drive with a clutch.
But, as the Lantern says, don't count on the manual becoming the transmission of the future, at least in the U.S. "Fewer than 9% of new cars in the United States are manuals, and that figure is set to drop to 6% by 2012," the Lantern writes. (In more energy-savvy Europe, most cars have manual transmissions.)
Also, although stick shifts are more expensive to make, car companies can charge more for an automatic transmission "because it's a marketable creature comfort," wrote Tom Whitehurst of the Corpus Christi Caller.
Yet another reason stick shifts aren't popular: Fewer people know how to use them or are inclined to learn, even though Patrick at Just Wondering ... says it takes only 45 minutes. We like his instructions about what to do if you stall while trying to get moving after stopping on a hill. "Don't freak and don't let the guy with the horn bother you. Brake. Clutch. Key to restart and try again."

Zambian VP to lead ruling party

Zambia's ruling party has chosen the current Vice-President, Rupiah Banda, as its candidate to succeed President Levy Mwanawasa, who died last month.

Mr Banda, a former foreign minister, will stand as the Movement for Multi-party Democracy (MMD) candidate in an election due before December.
He is likely to face a strong challenge from opposition leader Michael Sata, who narrowly lost the election in 2006.
Mr Mwanawasa died in France, having suffered a stroke in June.
Under the constitution, elections must be held within 90 days of the president's death.
The process of choosing a successor to Mr Mwanawasa had created deep divisions in the MMD.

Mr Banda only joined the MMD a few years ago.
He was a member of the United National Independence Party, founded by Zambia's first leader Kenneth Kaunda.
He is seen as an experienced politician, having served under Mr Kaunda.

Angolans vote in landmark polls

Angolans go to the polls on Friday to elect a new parliament - the first election in 16 years - and no expense has been spared in the preparations.
It was never going to be easy holding an election in a country after so many years of war with damaged infrastructure and millions of displaced people.
But as polling day approaches, it seems as if the authorities may be about to pull it off.

More than eight million people have been registered using an anti-fraud system of cards with holograms, pictures and fingerprints, and there is no shortage of publicity material encouraging citizens to vote - some of it being sent out via mobile phone text messages.
The electoral commission is setting up polling stations on oil rigs and helicopters will collect ballot papers from some remote voting stations while satellite and solar-powered fax machines will send lists from others.
And for those who have lost their voting cards, more than 6,000 hand-held computers will be used at polling stations to help people access their details and registration number.

Rice meets Gaddafi on Libya visit

TRIPOLI (Reuters) - Secretary of State Condoleezza Rice met Libyan leader Muammar Gaddafi -- once reviled as a "mad dog" by a U.S. president -- on Friday on a historic visit which she said proved that Washington had no permanent enemies.
Rice's trip, the first by a U.S. secretary of state to the North African country in 55 years, is intended to end decades of enmity, five years after Libya gave up its weapons of mass destruction program.
"I think we are off to a good start. It is only a start but after many, many years, I think it is a very good thing that the United States and Libya are establishing a way forward," Rice told a news conference after talks and dinner with Gaddafi at a compound bombed by U.S. warplanes in 1986.
She said she hoped there would be a new U.S. ambassador in Libya "soon."
"Rice's visit is proof that Libya has changed, America has changed and the world has changed. There is dialogue, understanding and entente between the two countries now," said Libyan Foreign Minister Mohammed Abdel-Rahman Shalgam.
For years, Washington considered Gaddafi a major supporter of terrorism and one of its most prominent enemies.
Incidents such as the 1988 bombing of Pan Am Flight 103 over Scotland, for which a Libyan agent was convicted, and the U.S. air raids on Tripoli and Benghazi in 1986 sent tensions soaring.
But in recent years Gaddafi has cooled his anti-Western rhetoric and sought to bring Libya back into the international mainstream.

US man bribed Nigerians

The former chief executive of US construction firm KBR, Albert Stanley, has pleaded guilty to charges of corruption relating to Nigerian deals.
Mr Stanley faces a seven-year prison sentence and must pay $10.8m (£6.07m), said the US Justice Department.
He and others were accused of gaining construction deals worth more than $6bn by bribing Nigerian officials.
KBR, which has caused controversy for its role in Iraq's reconstruction, had been part of Halliburton.
'Expect prosecution'
Mr Stanley was accused of breaching anti-bribery rules under the Foreign Corrupt Practices Act over a decade-long period.
"Today's plea demonstrates that corporate executives who bribe foreign government officials in return for lucrative business deals can expect to face prosecution," said Matthew Friedrich, acting assistant attorney general.
As well as criminal charges, the Securities and Exchange Commission (SEC) made civil charges against Mr Stanley.
Along with others involved in the scam, Mr Stanley "determined it was necessary to pay bribes to individuals within the Nigerian government in order to obtain contracts to build liquefied natural gas facilities in Bonny Island, Nigeria," said the watchdog.

BHUTTO'S WIDOWER WINS PRESIDENCY

Asif Ali Zardari, the widower of former Prime Minister Benazir Bhutto, has won a sweeping victory in Pakistan's presidential election.
The election was called after Pervez Musharraf resigned rather than risk being impeached.
Mr Zardari faces severe economic problems and a rampant Islamist insurgency that are threatening Pakistan's stability.
During the voting a bomb killed at least 15 people near Peshawar city.
The president is elected by secret ballots in the national and four provincial assemblies.
Mr Zardari won 481 votes out of 702, far more than the 352 votes that would have guaranteed him victory, leaving his two rivals trailing far behind.

Business community needs to change to exploit opportunities -PM

The business community needs to change mindsets and become more aggressive and outward looking to benefit from emerging opportunities. Prime Minister Mizengo Pinda made the call yesterday when speaking to representatives of various business interests in Dar es Salaam. He said that the business community has learnt diverse business environments and explored new opportunities. The community can also advise the government on the best policies that the country can adopt to compete at the regional level. “There was a time after independence we were left behind because of the policies we adopted…but that has to change now and we have to rid ourselves of policies and attitudes that do not benefit us in a competitive environment,” he said. Delegates of the Trade, Business and Investment Mission from Tanzania will from tomorrow to September 16 visit four countries of East Africa to familiarize themselves with counterpart business communities and to secure business opportunities. “We are badly lagging behind while our neighbours in the region are running faster because of their policies since independence. We also changed about twenty years ago but we have to wake up and chase those opportunities that we missed,” said the Prime Minister. He observed that while the government previously regarded business as capitalism ideologically, times have changed and forced it to move with time, a development that made it ready to support the business community in the country at any cost. "It was encouraging to see the biggest contributions of the private sector that has helped authorities to collect revenues from 25bn/- when the country adopted trade liberalization policies in 1990s to nearly 400bn/- per month now," said the PM. He pledged that the government in collaboration with Tanzania Private Sector Foundation (TPSF) would strive to support the private sector. Mr Pinda at the same time urged business men who would participate in the East African business tour to challenge it on how best the country can trade in the region. “Sometimes when we travel around developing countries and it pains to learn that their development was the result of full involvement of the private sector. I just ask myself what our problems with the trade is and what we should do to overcome them,” he added. The Prime Minister said, the business community has also to learn the crucial mission of investing in agriculture especially irrigation farming. He mentioned an example of Kenya that has huge farms because of modern technology it uses. He pointed out that Tanzania has nearly 30 million hectares of land potential for irrigation farming, but only 0.3 million hectares were cultivated. That obviously was not healthy to the country, he cautioned. He called for the local governments to change and encourage interested agricultural investors to invest and stop giving excuses of environmental destructions. He maintained that outdated environmental regulations in the local governments were obstacles to real developments. The PM said the business delegates were to curiously study which East African country was benefiting from Lake Victoria and how it managed to do so. He said there were reports that neighbouring countries were harvesting a lot from the lake and challenged them to study that situation and report back. However, he called on the business community to remain loyal to the country and pay all statutory revenues. He said the government’s doors were open to them. That, Pinda added, was why the Government was doing some amendments in various revenue policies and soon it would look into the mining sector. Available statistics, according to the Prime Minister, show that Tanzania was importing more from the region compared to exports. In 2001, for instance, Tanzania exported goods with the value of 51bn/- while in 2007 it imported goods worth 127bn/-. “Let us open up supermarkets in those countries, open branches of our companies and even build schools and effectively compete as we approach the open market. TPSF can always achieve that through set programmes and the government is always there to support you,” he said. The delegation of about 45 businessmen will leave for Kenya, Uganda, Rwanda and Burundi on a tour that will be sponsored by TPSF who will pay 50 per cent of the costs under the special three-year World Bank programme. Another 50 per cent will met by the business communities.

Development with Commonsense

Don’t let unearned praises lead us down a slippery path

A LAW maker recently chided donors for having heaped praises on the Third Phase Government while so much stealing was going on from right under their nose. Praises were indeed lavished on us as a good hostess lavishes delicacies on her guests. But … should the hostess be blamed for her guests’ indigestion from overindulgence? Should donors be blamed for our gulping down praises and feeling giddy? Most praises are just pleasantries and nothing more, not worth a second thought. “Geneva of East Africa,” so was Arusha called though heaps of garbage lines its side streets and stagnant water collects where open drains are clogged with overgrown weeds or garbage. "Country with most favourable investment climate in the Third World,” so we were told despite the legendary delays at our ports, tangles of red tape, unpredictable water and electricity supplies, labour force that is poorly educated and trained compared to our neighbours. Those all add up to make Tanzania anything but the “most favourable” environment to do business in. “Impressive achievements in fighting corruption,” though not a single mega wrong-doer has been prosecuted and put behind bars. So go the praises. Visiting dignitaries are full of such pleasantries. Shouldn’t take those praises to heart, and yet we do. We plaster newspaper headlines, quoting them verbatim. There are many reasons why a country might be showered with unearned praises. If we scratch below the surface and unearth those reasons, perhaps we could be more cool-headed in handling them. Praises of a country’s achievement may come from the aid worker’s wish to believe that what he is doing is making a difference. It’s a form of self-affirmation, you might say. Praises may be heaped on the country to show off his own effectiveness on the ground. If a convincing case is made to his boss and the headquarters, can sweet promotion be far behind? Praises too readily offered may have been triggered by an unspoken competition among donors to be on the good side of the officialdom, to be the darling of the pack. At times much ado is made of small achievements. That might help donor agencies to make a convincing case to their taxpayers that the money is being put to good use. But praises freely given are wrought with problems. “Mgema akisifiwa, tembo hulitia maji.” If a palm wine tapper is praised, the palm wine gets watered down, so goes a Kiswahili proverb. Praises were once heaped on Liberia in the 1950s and 1960s for being an island of stability in a continent in turmoil. Praises were heaped on Somalia for the quality of leadership, enlightened policies and stability that seemed rock solid. It was unique in the whole of Sub-Saharan Africa, being molded of one race, one language and one culture. Praises were heaped on Sudan too. It was seen to be the potential breadbasket for Africa if not the world. But before long these and other countries that were highly praised for the promise they once held unraveled. How did that happen? Did too much praise inflate those leaders’ ego and intoxicate them with self-importance that they lost touch with reality and forgot about development? A donor agency official confesses that they are in constant search of success stories they could showcase. But exemplary cases are hard to come by. Kenya and Uganda once fit the bill. But political strife in the aftermath of recent elections in Kenya and the prospect of a fourth term presidency in Uganda make them less acceptable models for their taxpayers. Is the spotlight shifting to Tanzania, kwa bahati mbaya sana (most unfortunately)? These externally driven praises could, if we let it, take us down the same slippery path of disintegration where others have gone. Perhaps we could learn from our Mauritian friends and, like them, respond to those who praise us too readily with the likes of: You can’t mean that we are doing that great? We are barely achieving average growth for Africa. You surely don’t mean to imply that $380 is good enough for Tanzanians? Aren’t Europeans and Americans earning $40,000 a year? Like Mauritians we could politely “decline” to be praised, refuse to get giddy, and get on with serious business of development, undistracted and without illusion.

South Africa’s xenophobic attacks:We are very sorry, says Zuma

SOUTH Africa’s African National Congress (ANC) President Jacob Zuma yesterday apologised on behalf of his country for violent attacks on foreign nationals earlier this year. Mr Zuma, who was in the country for a three-day tour, gave the apologies during a meeting with the Chama cha Mapinduzi’s (CCM) Elders Council in Dar es Salaam. In May a series of riots occurred in South Africa leaving about 70 people dead, hundreds injured and some 25,000 displaced. The attacks targeted foreign nationals and were apparently motivated by xenophobia, although 21 of those killed were South African citizens. About 100 Tanzanians, who were in South Africa in May, were helped to return home in the wake of the xenophobic attacks. Mr Zuma said: “We are sorry that such ugly incident occurred. We have taken all measures to ensure that kind of incidents will never happen again.” He said ANC and the South African government embarked on mass education to make people understand the need for Africans to co-operate. “We want our people to understand that before liberation from apartheid South Africans were living in foreign countries peacefully,” he said. Mr Zuma said ANC was deeply concerned and regrets on the events in May. He said the party tried to find out what drove South Africans into such grisly, despicable and nefarious actions. He said that in some areas they found out that foreigners, especially rich ones were attacked by gangs with motives of stealing property. “It was crime and something that go beyond xenophobia,” he said. Earlier, Mr Zuma commended CCM for establishing the elder’s council. He said that was a good lesson to ANC. He said a few years ago ANC had a similar plan but failed to implement it. “I wish we could have a council of elders in Africa who could help in resolving conflicts on the continent. I believe we could all listen to them,” he said. Meanwhile, Mr Zuma yesterday paid a visit to Mwalimu Nyerere Memorial Academy (MNMA) in Kigamboni, saying the institution had posed a big challenge to ANC. He said that South Africa had great leaders who deserved to be immortalised through institutions like MNMA. He described Mwalimu Julius Nyerere as the great leader who championed the cause of total liberation of the African continent. He said Mwalimu Nyerere played a big role in shaping the South African constitution. “Our country owes him (Nyerere) a lot,” he said. The MNMA Principal, Dr John Magoti, appealed to Mr Zuma to help the institution to get experts from South Africa. Mr Zuma and his delegation were scheduled to leave for home yesterday, but his host, the CCM Vice-Chairman (Mainland), Mr Pius Msekwa, said the tour had been extended on the request by President Jakaya Kikwete. Mr Zuma was expected to call on the president last night.