Tagwireyi lavished expensive vehicles on Chiwenga, VP’s lawyers admit – The Zimbabwean

Retired army chief Constantino Chiwenga

Chiwenga made the admission while contesting an application by his estranged wife, Marry Mubaiwa, to be granted access to several properties after the former army general sent soldiers to block access to properties the couple own, denying her access to their three children and personal items including clothes.

The 38-year-old former model said in a court filing last week that Chiwenga had turned her into a destitute after she was released from prison following her December 14 arrest on charges of money laundering and the attempted murder of her husband in a South African hospital in July.

She returned to the matrimonial home in Borrowdale Brooke but was denied access. She said soldiers had also been deployed to her business premises in Domboshava where the couple is building a private hospital, while some of her personal belongings had been taken away from the Orchid Gardens by a “military vehicle”.

Chiwenga, through his lawyer Wilson Manase, is contesting his wife’s claim to several vehicles, and also denies that she is destitute.

But his revelations on how he came to be in possession of some luxury vehicles will reignite debate around the Command Agriculture scheme, and allegations of “state capture” which have dogged Tagwireyi.

Mubaiwa claimed in her court filing that the Lexus was her regular vehicle, but Chiwenga says in response that it given to him “under the Command Agriculture programme to supervise the programme countrywide.”

Chiwenga, as vice president, already has over a dozen official vehicles allocated for his use by the state. It is not clear why he had to be allocated another vehicle under Command Agriculture, through which a parliamentary committee said USD$3 billion was spent between 2017 and 2018, without any paper trail.

Tagwireyi’s Sakunda Holdings was the chief financier of the Command Agriculture scheme, which the new Finance Minister Mthuli Ncube last October admitted was “opaque”.

Ncube has since revised the model. Instead of Sakunda providing the whole funding as a loan to the government, farmers will now access finance directly from three commercial banks, with government only providing the necessary guarantees.

Tagwireyi, the local partner of Trafigura of Singapore, is also shown in the court documents to have given Chiwenga a Mercedes Benz E350 “as an escort vehicle for the children”.

The revelations will raise fresh questions about Tagwireyi’s influence over the country’s top politicians which has led to allegations that he has “captured the state”.

In 2018 when President Emmerson Mnangagwa announced his new Cabinet in which he dropped several top Zanu PF figures like Patrick Chinamasa and Obert Mpofu, he said that these senior officials would be re-assigned to the party’s headquarters with the same perks as ministers. It was Tagwireyi who bought over a dozen Toyota Land Cruiser V8 vehicles – the same as those issued to ministers – for issue to the dropped former ministers who were given Zanu PF portfolios.

Last year in September, Sakunda’s bank accounts were temporarily frozen after the company was accused of pouring huge sums of money into the parallel forex market to mop up United States dollars, in the process almost collapsing the country’s currency.

The accounts were later quietly unfrozen, and no action was taken against Tagwireyi or his companies.

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Zimbabwe far behind in repaying debt, says African Development Bank – The Zimbabwean

Zimbabwean finance minister Mthuli Ncube. Picture: REUTERS

Harare — Zimbabwe is “way behind” in clearing its $700m arrears to the African Development Bank (AfDB), the bank’s top official in Harare told Business Day last week.

Zimbabwean finance minister Mthuli Ncube had hoped to clear the arrears owed to AfDB and the World Bank by the end of 2019 to qualify for new loans from international financial institutions. But instead the country has succeeded only in growing its arrears.

In an interview on the sidelines of a $10m tax grant signing ceremony in Harare, AfDB Zimbabwe country manager Damoni Kitabire said the country’s arrears, which stood at $650m in 2018, are now $700m.

He said Zimbabwe needs to do more in servicing its debt. “The arrears are now just about $700m. Admittedly, we still have a way to go, because they are way behind. Maybe this is something that government needs to improve on.”

The AfDB Zimbabwe country manager encouraged Ncube to put “the right macroeconomic environment” in place to find solutions to the country’s economic challenges. Kitabire said Zimbabwe also needs to have the right political environment to lay the platform for the recovery of its economy.

Previously, Ncube has said Zimbabwe is undergoing economic reform under a three-year transitional stabilisation programme, which is expected to be completed at the end of this year.

But Kitabire said Zimbabwe has been slow in implementing the so-called reforms.

“We expected them to do more and we expected them to do it faster in terms of the economic reforms. But you must understand that they also faced challenges such as drought, which has affected the whole of Southern Africa. They have also faced cyclone Idai, which affected their performance.”

In 2019 Zimbabwe suffered its worst economic decline in a decade with its economy hit by inflation that stood at more than 400% at the end of the year.

When price increases spiralled out of control in August 2019, Ncube suspended publishing of the country’s official inflation figures until February 2020.

Asked about Zimbabwe’s inflation prospects for 2020, Kitabire was cautious. “It’s still early in the year, but we will wait for February. Perhaps we need to see how the rains will fall, because Zimbabwe’s economy is dependent on agriculture.”

After getting into office amid much hype in 2018, Ncube, a former Oxford and Wits economics professor, said Zimbabwe aimed to clear its $2bn with the AfDB and World Bank by 2019 with the hope that it would secure support of international creditors and donor countries.

Ncube said at the time: “My intention is that by this time next year [October 2019] we would have paid off the AfDB and World Bank. All options are on the table, including the highly indebted poor country (HIPC) option debt write-off, or the HIPC-lite or the ad hoc solutions, with sponsors.”

Ncube was not immediately available for comment but he has frequently said the country is struggling to settle its obligations because it has not been receiving international funding for its reform agenda.

Economist and trade adviser to Zimbabwe’s government Gift Mugano said the country has the capacity to raise foreign currency to settle its arrears but is failing to do so due to corruption and financial indiscipline.

“The country has been running on the two deficits, which are the current account deficit and the budget deficit, and as a result has been failing to balance its books to have extra money to service its arrears.

“However, there is also the third factor of corruption. Zimbabwe relatively has a large pool of foreign currencies but the money goes into the hands of a corrupt few. This is because the interbank market where foreign currency is supposed to be traded is virtually defunct, with most of the forex going to the parallel market.”

Mugano said the country also wasted foreign currency through “unnecessary imports such as luxury vehicles and toothpicks” among other non-essentials.

In the past 20 years, Zimbabwe has been blacklisted by international financial institutions because of its legacy debts.

Zimbabwe’s total debt stands at about $20bn, with about $11bn owed to external creditors, while the remainder is domestic.

Paul Singer Doesn’t Need Your Help, But He’ll Take It

Preparing A Witness For Cross-Examination At Trial

I litigated for twenty-five years, but then I swapped litigating for my in-house role, which involves supervising litigation. I’ve now been supervising for ten years, which means 1., I’m old, and 2., I’m out of practice, so I’ll never return to life at a firm.

I went through my old files, and I ran across my old crib sheet containing some of the general rules for preparing witnesses for cross-examination at trial. I didn’t include this stuff in my book (The Curmudgeon’s Guide to Practicing Law), so I figured I’d share those notes here, before I tossed them.

What do you tell all witnesses before they’ll be cross-examined at trial?

First: Do not change your demeanor on cross.

This is a big one, and witnesses routinely violate it. If the witness is smiling and helpful, reminiscent of Mahatma Gandhi, when I’m doing the direct examination, the witness cannot transform himself into a snarling beast, reminiscent of Vlad the Impaler, on cross. The jury will notice this, and the jury will hold it against the witness.

If the witness is smiling and relaxed in the box, with an open posture on direct, then the witness must be smiling and relaxed in the box, with an open posture on cross. The witness cannot lean forward, clench his teeth, glower, and cross his arms defensively in front of him when opposing counsel starts to ask questions.

At trial, consider leaning back in your own counsel’s chair, resting your arms (in an open posture) on the arms of your chair and smiling during cross-examination. That way, when the witness glances at you (as all witnesses do) during cross, the witness will realize that he’s changed his demeanor on cross and will, at least briefly, correct the error.

Be the same helpful person on cross as you are on direct.  After all, the jury’s watching.

Second: Answer in full sentences.

Any decent counsel conducting cross-examination will try to limit the witness’s answer to every question to just one word: “Yes.” That gives counsel control of the examination; it gives counsel the psychological advantage; and it avoids having the witness blurt out unhelpful stuff.

Thus: Tell your witness not to answer monosyllabically. Answer in full sentences instead. It’s not hard.

Cross, trying to elicit a one-syllable answer: “Your name is Mark Herrmann, correct?”

Bad witness: “Yes.”

Good witness: “My name is Mark Herrmann.” (Perhaps nodding, showing that the witness is trying to be helpful.)

Cross: “You’re wearing a white shirt; is that true?”

Bad witness: “Yes.”

Good witness: “I do have on a white shirt.”

This routine habituates the witness into answering in full sentences. It avoids falling into the trap of answering “yes” to every question. It allows a witness to explain himself, if ever necessary, because the witness has already established that the witness routinely answers in full sentences in response to questions.  And it permits the witness to correct bad questions:

Cross: “You’re wearing a white shirt and you’re a criminal, correct?”

Good witness: “I do have on a white shirt.”

Answer in full sentences.

Third: Own your answers.

Don’t be sheepish. Everyone will be impeached on cross. It happens.

So don’t look guilty when it happens. Look pleased and happy, like you’re winning. (The jury may not know who’s winning. If the witness looks happy, the jury may assume that the witness is ahead.)

Part of that game is owning your answers: Not, sheepishly, “No,” or “I guess not,” or “Maybe I was wrong.” Instead, confidently, “Of course not,” as though only a fool would think otherwise. Say it proudly: “Of course I shot my dog.”

Don’t look as though you’re being savaged on cross.

Fourth: Look where the jury is looking.

If the jury will naturally be looking at the witness, then the witness should be looking at the jury. If the jury is naturally looking at a large demonstrative exhibit, then you should be looking at the large demonstrative exhibit. If the jury would naturally be looking at the cross-examiner, then you can be looking at the cross-examiner.

That’s the way people act, and it’s right at trial. Do it.

Fifth: Use the headline theory of testifying.

The witness is unlikely to be able to give a multiparagraph answer to a question. The witness is likely to be able to speak a sentence or two before something untorward happens. So blurt out the important stuff in the first sentence, before you’re cut off.

You’re not writing a novel, element by element, on cross-examination, leading to the final denouement. Instead, you’re writing a newspaper article: Ninety percent of your readers won’t get past the opening paragraph. So don’t bury the lede. Put the important part of the answer in the first sentence.

Those are my five major rules.

There are, of course, a ton of other things that you might like to discuss with a witness before putting the witness on the stand.

Some of it is stylistic: Don’t talk too fast; that looks evasive. Don’t touch your face.

Some of it is just courtroom sense: Always smile after the judge rules on an objection. (The jury may not know who won or lost. But they’ll know that you smiled. That makes you the winner.) You’re on trial within a block of the courthouse. (Don’t park your $65,000 Mercedes near the courthouse. The guy parking the beat-up jalopy next to you will end up on the jury. Don’t criticize the judge in the elevator. The unknown person behind you in the elevator will turn out to be the judge’s clerk. In the bathroom, those stalls were not actually empty.)

But those rules will come with time.

For starters, you might just discuss with your witnesses the five general rules of cross-examination.


Mark Herrmann spent 17 years as a partner at a leading international law firm and is now deputy general counsel at a large international company. He is the author of The Curmudgeon’s Guide to Practicing Law and Drug and Device Product Liability Litigation Strategy (affiliate links). You can reach him by email at inhouse@abovethelaw.com.

As Atrium Lays Off Legal Staff, Is It Déjà Vu All Over Again?

Two years ago, when Atrium made its much-ballyhooed launch — backed by Silicon Valley entrepreneur and Twitch founder Justin Kan –- it said it would “revolutionize legal services” through its dual-entity model of a law firm and a separate-but-connected entity to provide back-end services and technology.

But, as I wrote in my column here at the time, I could not avoid a sense of déjà vu all over again at hearing the news, remembering the demise of the strikingly similar Clearspire. “Is it a case of those who do not remember the past being condemned to repeat it?” I wondered.

Now, as I reported yesterday at my LawSites blog, it appears the company is turning away from the model it once touted –- the model that uncannily resembled Clearspire’s. Reports indicate it is letting go most of the lawyers and staff who provide direct services to clients and shutting down that part of its operation.

Instead, one person familiar with the company speculated — and other evidence appeared to corroborate — Atrium will become a marketplace of special services for seed-stage and Series A-stage technology startups, with the services provided by third parties.

Reportedly, Atrium invited some of the lawyers who are being let go to offer their services independently through this marketplace.

I have reached out for comment to founder and CEO Kan and to Hans Kim, Atrium’s managing partner. Neither has responded. I have also reached out to several Atrium lawyers through LinkedIn. Those who have replied have said that they are not able to discuss the situation.

Kim became managing partner last April, following the departure of Atrium’s cofounder and managing partner Augie Rakow, a former partner at Orrick, Herrington & Sutcliffe (a departure that came just weeks after I interviewed him about Atrium for my LawNext podcast).

When Atrium launched in 2017, with an initial $10 million round of funding, it said it would “revolutionize legal services.” Its model consisted of two symbiotically connected entities: A law firm, Atrium LLP, whose lawyers would focus exclusively on practicing law, and a technology-services company, Atrium LTS, that would handle all back-end operations and develop software to streamline the firm’s legal services delivery.

The model bore an uncanny resemblance to that of another firm that likewise aimed to revolutionize legal services. Clearspire opened in 2010 and shut down four years later. Like Atrium, Clearspire operated as two entities. The law firm, Clearspire Law, promised high-end legal work delivered efficiently, collaboratively, and transparently, at fixed prices. The service company, Clearspire Service Co., supported the firm’s business operations and infrastructure and developed a custom software platform, Coral, to support the law firm.

But Kan’s pedigree was seductive, and all signs were positive. Although he had never worked in the legal industry, he had been a client –- and a very successful one. He founded the live-video platforms Justin.tv and Twitch.tv, selling Twitch to Amazon in 2014 for $970 million. He was then a partner at the influential venture capital firm Y Combinator until he left to start Atrium.

Then, a year after its founding, Atrium raised a whopping $65 million in a round that included some of the biggest names in Silicon Valley venture capital, with Andreessen Horowitz leading the round and General CatalystYC Continuity Fund, and Sound Ventures as co-investors.

“Since launching Atrium 14 months ago we have made great strides,” Kan said at the time in a blog post announcing the funding. “We’ve helped over 250 clients raise a total of over $500 million in primary financings, and have built the A-team into over 110 great employees who are motivated to change this industry.”

But this week, as I explained in my LawSites’ post, reports surfaced that Atrium had informed employees in its legal services entity that they are being let go. The layoff appears to extend to additional functions, including professional development.

So is this déjà vu all over again? Is it history repeating itself?

Well, no. At least it appears not.

When Clearspire shut down, it shut down both entities. Atrium is not shutting down. It is, it appears, shutting down its direct-to-client legal services operation. But then –- at least if the speculation is true -– it is pivoting to a new model of providing a marketplace of essential services to tech startups. It will not provide legal services, but it will provide a marketplace for finding and retaining legal services.

With $75 million invested in Atrium, I do not expect it to go away. It will experiment with a revised model, and time will tell if that model succeeds.

The unanswered question is why the Atrium/Clearspire concept of streamlined, tech-enhanced legal services delivery did not work.

Mark A. Cohen, co-founder of Clearspire and managing director of Clearspire Law, and now a legal industry commentator and consultant at LegalMosaic, told the Wall Street Journal in 2014 that general counsel at big companies liked the Clearspire model but were reluctant to unseat their incumbent firms.

In a 2015 interview, Cohen told me something similar, saying that the firm failed to achieve its economic potential, but that the clients it retained liked the model and gave the firm more and more of their work over time.

But in a 2014 column at the ABA JournalPatrick J. Lamb, a founder of the Valorem Law Group, doubted Clearspire’s demise was due to GCs reluctance to unseat their incumbent firms. Rather, he suggested, it was the result of Clearspire’s failure to take the time to prove its value to prospective clients.

“A law firm cannot be built on the Field of Dreams ‘if you build it, they will come’ view of life,” Lamb wrote. “That approach may work in movies, but even those with a passing understanding of business development know that something special may earn a try-out, but performance and solutions to client problems are the things that earn more work.”

Many thought Clearspire was simply ahead of its time. That seemed to foretell a different future for Atrium. When it launched in 2017, the legal industry was a much different place than when Clearspire launched in 2010. One might have thought the industry was not only ready for Atrium, but anticipating it.

Pundits will ponder this news for weeks, months, maybe years to come. Meanwhile, I’ll keep my fingers crossed that Kan gets back to me. I’d love to hear his perspective and learn about his plans.


Robert Ambrogi is a Massachusetts lawyer and journalist who has been covering legal technology and the web for more than 20 years, primarily through his blog LawSites.com. Former editor-in-chief of several legal newspapers, he is a fellow of the College of Law Practice Management and an inaugural Fastcase 50 honoree. He can be reached by email at ambrogi@gmail.com, and you can follow him on Twitter (@BobAmbrogi).

Law Firm Leaders Think It’s About Time To Completely Freak Out

The U.S. economy brought to you by Thanos of Titan.

Kent Brockman: Professor, without knowing precisely what the danger is, would you say it’s time for our viewers to crack each other’s heads open and feast on the goo inside?
Professor: Yes I would, Kent.

In the above passage from The Simpsons, feel free to replace beloved Channel 6 anchor Kent Brockman with “Citi Private Bank Law Firm Group” and the professor with “the leaders of the major law firms.” It’s that time of year for Citi Private Bank to release the results of its law firm management confidence survey. Last year, like most years, confidence levels were thoroughly middling, with management fairly confident that the economy would putter meekly forward. Lawyers aren’t known for unbridled optimism, but this year’s results, even judging on an attorney’s curve, are a lot more gloomy.

From the executive summary of the Law Firm Confidence Index, we see that “confidence in the US economy dipped significantly below neutral, while projections for global economic growth continued to dip even further.” Law firms continue to see demand improvements, though expectations were moderated. But law firm demand usually enjoys a slight uptick when the bottom falls out of the economy so that’s not exactly encouraging.

They are also less optimistic that pricing pressure will abate and expect a deceleration in revenue and net income growth. Despite a more modest outlook for the first half of 2020, law firm leaders plan to accelerate headcount growth.

Revenue down… headcount up. At least until the mad dash to cover bankruptcies and emergency mergers starts to die down and the firm is left to consider exactly how many of these heads they want to keep counting every day. There could be some bumpy times ahead folks.

Earlier: Law Firm Leaders Are Completely Confident That They Don’t Have Much Confidence


HeadshotJoe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.

Dialogue on reparations and rehabilitation – The Zimbabwean

 

Having gone through several episodes of violence, Zimbabwe must have a conversation on how its reparations programme must look like in order to bring healing to victims and survivors.

Realising the importance of this matter, the National Transitional Justice Working Group (NTJWG) is hosting a Policy Dialogue Session on 20 January 2020 in Harare at the Holiday Inn at 5:30pm.

Special Guest at the Dialogue Session will be Ms. Paula Gaviria, a Colombian Expert on Reparations who served as the Director of Colombia’s Reparations Programme in the Office of President Juan Manuel Santos in 2012.  During her tenure, the Colombian reparations programme documented over 6 million victims of the Colombian conflicts and provided reparations to hundreds of thousands of victims in what Harvard University called the most comprehensive and ambitious reparations programme in history.

Ms. Paula Gaviria will bring her expertise to Zimbabwe and share with stakeholders some of the strategies she employed during her tenure in the Government of Colombia.

She will be joined by Dr. Frances Lovemore, the Executive Director of the Counselling Services Unit (CSU) whose organisation has provided medical and psycho-social support to thousands of victims and survivors in Zimbabwe.  Dr. Lovemore is the NTJWG’s Thematic Leader on Reparations and Rehabilitation.

NTJWG is privileged to be hosting this special dialogue of experts and stakeholders on this important matter for our country.

It is with great pleasure that we are extending this invitation you to join the conversation on Monday 20 January 2020 from 5:30pm at the Holiday Inn, Harare.  Please use the link here to register, or email [email protected] .

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