Category: News Feeds

In Summary

• Cross-border traders, who make their living from buying and selling goods sourced from neighbouring countries, are defying lockdown regulations.
• Zimbabweans suffering from hyperinflation trek to neighbouring countries such as Botswana, Zambia, Mozambique and South Africa to buy basic goods and most of them use illegal crossing points to avoid paying taxes.
• The southern African country’s inflation rate soared to 676.4 per cent in March from 540.2 per cent the previous month amid a weak exchange rate and food shortages.
• Two weeks ago the government introduced price controls, saying retailers were profiting from the coronavirus pandemic.

Zimbabwe is clamping down on second-hand clothes imports as cross-border Covid-19 coronavirus infections and smuggling surge.

Cross-border traders, who make their living from buying and selling goods sourced from neighbouring countries, are defying lockdown regulations to illegally cross into countries such as South Africa and Mozambique, according to authorities.

Monica Mutsvangwa, the Minister of Information, said smuggling activities especially along the vast Mozambique border pose a serious threat as imported coronavirus cases are on the increase.

“An increase in the smuggling of second-hand clothes into the country through border posts with Mozambique such as Mt Selinda and Sango poses unprecedented danger of spreading Covid-19 by to those who wear them,” Mrs Mutsvangwa said following a Cabinet meeting on the issue last week.

“The government will upscale the enforcement of the law banning the importation of second hand-clothes,” she added.

Zimbabwe first banned the importation of second-clothes in 2015 to protect the country’s textile industry, but relaxed the restrictions two years later as it is a major source of income for informal traders hit hard by the collapse of the economy. Traders source bales of the clothes from Tanzania, Mozambique, South Africa and Zambia to resell to locals whose shrinking sources of income make it difficult for them to buy brand new clothes.

Post published in: Business

HARARE, Zimbabwe

Pounded harder by hyperinflation, Zimbabwe’s Central Bank recently indicated that it will print high denomination banknotes, ostensibly to increase physical money supply and curb cash shortages.

According to the International Monetary Fund (IMF), inflation in Zimbabwe hovered above 300% by the end of 2019.

Zimbabwean authorities from the country’s Central Bank, which is the Reserve Bank of Zimbabwe, recently approved the introduction of 10 and 20 Zimbabwe dollar banknotes worth around 600 million Zimbabwe dollar ($24 million) in local currency. The money, they said, will hit the market beginning this quarter.

The total amount of the local currency in circulation stands at around 1.4 billion Zimbabwe dollars ($56 million) in cash, which would add up to 2 billion Zimbabwe dollars after the injection of the new banknotes.

Meanwhile, the Southern Africa nation currently has banknotes for 2 and 5 Zimbabwe dollars and coins only in local currency.

“The plans are advanced and higher denomination notes will be made available to the public sometime later this month,” Eddie Cross, a member of the Monetary Policy Committee of Zimbabwe’s Central Bank, told state media over the last weekend.

Zimbabwe ditched the use of its own currency at first in 2008 following hyperinflation which eroded the value of the local currency.

In June last year, the Finance Ministry banned the use of foreign currency as legal tender in an apparent bid to combat inflation, which authorities claimed was being fueled by illegal money changers.

Cornered by yet another wave of inflation, this year in March, Zimbabwe reintroduced the use of multi currencies like US dollar, South African rand and British pound, which however did not push out the feared local currency.

Ever since Western Countries cut the supply of  military hardware to Zimbabwe 20 years ago, following sanctions imposed against the country’s negative human rights record under Robert Mugabe, Zimbabwe has been struggling to bolster its arsenal. At the time, Zimbabwe was recovering from a hardware deficit following its 1998 military intervention in the Democratic Republic of Congo (DRC) war.

The economic and human rights abuse crises reached their peak during 2008 due to Mugabe’s money-printing activity, which ignited severe hyperinflation. Although the government provided multiple excuses throughout the decades, like the drought, the real problem remains poor governance and in-house corruption. Mugabe ruled Zimbabwe from 1980 to2017 and his successor, Emmerson Mnangagwa, has similar tendencies.

The US first imposed sanctions against Zimbabwe in 2001 bypassing the Zimbabwe Democracy and Economic Recovery Act (ZIDERA), which referred to sending troops to DRC, the private appropriation of public assets and the fast-track land reform program. In 2018, ZIDERA was amended to address new issues. The updated ZIDERA urged the Zimbabwean government to implement the 2013 constitution, specifically to respect and protect human rights, to account for diamond and mineral revenue, and to enforce the SADC Tribunal’s decisions on human rights and land compensation.

However, the government still fails to account for mineral revenues and perpetuates brutal violations of human rights. During his election campaign in 2017, President Mnangagwa stressed his aspirations to lead a business- friendly policy and restore Zimbabwe’s economy. After being elected, he proved to be incapable of doing any of the above. On the contrary, Mnangagwa’s administration decided to print its own faux money which naturally led to monetary collapse. Politically connected elites have been getting US dollars from the reserve bank and selling them at a profit on the parallel market, pushing down the value of the national currency. Meanwhile, banks in Zimbabwe have no US dollars, South African Rands, or Botswana Pulas currencies, and therefore cannot supply stores with the funds to carry on business activity.

The status quo continues, as does the looting of public resources and raids on bank accounts, with the government and Reserve Bank taking over private citizens’ forex savings. The government holds on to repressive laws and it condones violence by state security agents, protecting known perpetrators of serious violations. Tendai Biti, an opposition MP and former finance minister, complains that life has gone back to colonial times: “I’m washing in a bucket, my friend, as if it is Southern Rhodesia in 1923.”

Nonetheless, on January 10, 2020, Zimbabwe replaced its single-engine J-7 fighter jets procured from China with Russian-made $500 million MiG-29 and MiG-35 aircraft. In return, Zimbabwe mortgaged part of its vast mineral wealth to Moscow, including the Darwendale platinum reserve. The arms deal between the countries is part of their already existing $3 billion joint platinum project in collaboration with Rostec from 2014. The deal is one of many agreements signed during a trip to Zimbabwe by Russian Foreign Affairs Minister, Sergey Lavrov, on March 8, 2018.
Is the upgrade really necessary while, after decades of mismanagement and corruption, Zimbabwe is a wreck? Its economy is crashing, and its people are hungry. In fact, according to the UN World Food Programme, by the first half of 2020, the annual inflation will reach 500%, and about half of the population in Zimbabwe will not be able to provide food. The country is poorer than it has ever been due to its ruler’s greed. Nonetheless, other figures have tried to take advantage of the country’s resources. Among them are neighbouring governments, donors, and foreign stakeholders.

Over the past decade, Eastern European countries have filled in the gap left by the West. Zimbabwe- Russian trade reached its peak during 2017-2019. In 2019, the President of Zimbabwe, Emmerson Mnangagwa, together with over 40 other African leaders flew to Russia in hopes of taking better advantage of the newly established cycle. According to the Russian Government, over the first five months of 2019, Russia-Zimbabwe trade rose 9.5% year-on-year to US$18,5 million. Trade-in 2018 stood at US$45,9 million, down 13.6% from the previous year.

Many businessmen from Eastern Europe have been trying to take a bite of the increasingly flourishing commercial interest of Zimbabwe in Russia. One of them, a very significant connecting link between Zimbabwe and Eastern European countries, is the Belarusian businessman Alexander Zingman. Zingman can be seen a lot on the media at events with multiple figures of Africa’s political elite. Including Zambian President Edgar Lungu, Zimbabwe Minister of Lands and Agriculture, Perence Shiri, Zimbabwe Press& Permanent Secretary in the Ministry of Information, George Charamba and others.

Zingman has an impressive track record of brokering several deals in Tanzania and Chad with his partner Witold Karczewski, Vice Chairman of the Polish Chamber of Commerce. Starting in 2017, he has been involved in many of the military purchases between Zimbabwe and other African countries with Belarus and the Russian defence industry, which has been under US sanctions in recent years. His business activity is focused on agriculture equipment, trade of arms, and military equipment.

Alexander Zingman is tied with a network of powerful people, both in East Europe and in the African Continent. One of his closest friends is, in fact, the President of Zimbabwe Emmerson Mnangagwa. Other than brokering deals between Mnangagwa and officials from Russia and Belarus, Zingman is often invited to Mnangagwa’s house to spend time with the family. Zingman is also in contact with the President’s son Emmerson Mnangagwa Junior, who has been involved in his father’s business with Zingman.

On March 3rd, 2018, Zimbabwe Vice President, Constantino Chiwenga, signed $68 million worth of deals as a part of the Memorandum of Understanding (MOU) for economic development and trade with Belarus Chief of Presidential Affairs, Victor Sheiman. Open-source media photos reveal that Zingman accompanied the delegation of Belarus. Zingman was among the figures that surrounded Sheiman and Mnangagwa, both sanctioned by OFAC. On March 29, 2018, a Zimbabwe delegation visited Russia’s Ulan-Ude Aviation Factory, a part of the Russian Helicopters group, to view the VIP modification of Mi-171E helicopters. According to the Factory Managing Director, Leonid Belych, the Zimbabwean guests, and the factory’s authorities, have discussed the terms of prospective sales contracts. Following these meetings, on May 2018, Alexander Zingman finalized a deal with Zimbabwe regarding a sell of two Mil Mi-17 helicopters through the company STAR Strategic Assets III LP.

It was not long before the three met again on September 12, 2018, after swearing in John Chamunorwa Mangwiro as Deputy Minister of Health. President Emmerson Mnangagwa hosted Sheiman and Zingman at State House in Harare for two days. Sheiman and Zingman, who arrived to follow up on several investment deals between the countries, presented Mnangagwa with a birthday gift of a sword inscribed his name and his popular slogan “Pasi neMhandu.” On November 2018, Zingman met with the Chief of Russian Helicopter Company “Baginski”, Andrei Ivanovich Boginsky.

On January 17, 2019, Mnangagwa took part in the opening ceremony of the Zimbabwe consulate’s office in Minsk, Belarus, and admitted Alexander Zingman as Zimbabwe’s Honorary Consul in Belarus. At the end of the ceremony, the President of Belarus, Alexander Lukashenko, invited the guests for an official lunch in honour of the Head of State and Commander-in-Chief of the Zimbabwe Defence Forces. Among the participants were Zimbabwean Minister of Lands, Agriculture and Rural Resettlement Perence Shiri, Press Secretary in the Office of the President of Zimbabwe George Charamba, Belarusian Minister of Foreign Affairs Vladimir Makei and others.

In the same month of Zingman’s appointment, Zimbabwe replaced its single-engine J-7 fighter jets with the MiG-29 and MiG-35 aircrafts. The above sequence of events draws the conclusion that there is a high probability that Zingman was behind this purchase as well. If so, was Mnangagwa appointing him in order to protect his own activities and expand his manoeuvre range?

The thought of the splurge in upgrading the presidential aircraft while Zimbabwe suffers from hunger is a slap in the face for the country’s population. This goes to show that the leader of Zimbabwe still trades the country’s natural resources, and perhaps even distributes generous payments to his middleman, Alexander Zingman, while his nation starves to death.

Post published in: Business

* A strip club owner has sued New York Governor Andrew Cuomo over closures related to COVID-19. Cuomo should pay any settlement in dollar bills. [New York Post]

* The Georgia Attorney General has asked the Department of Justice to investigate the Ahmaud Arbery case. [CNN]

* The Federal Circuit wouldn’t give a lawyer a mulligan and affirmed a lower tribunal’s ruling that the attorney did not have the right to a golf patent. [Reuters]

* Almost 2,000 former employees of the Department of Justice have called on Attorney General Barr to resign. [Washington Post]

* A college that is accused of being a “sham” has recieved millions of dollars of relief related to COVID-19. Sounds like a bad sequel to the movie Accepted. [NPR]

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Jordan Rothman is a partner of The Rothman Law Firm, a full-service New York and New Jersey law firm. He is also the founder of Student Debt Diaries, a website discussing how he paid off his student loans. You can reach Jordan through email at jordan@rothmanlawyer.com.

Ed. note: Welcome to our daily Trivia Question of the Day feature.

According to data collected by ALM for their 2020 Am Law 100 ranking, which Biglaw firm had the biggest increase in their revenue per lawyer?

Hint: RPL was up 16.1 percent, to $823,000 per lawyer.

See the answer on the next page.

Exciting news! I’ve decided to revive the “An Interview With” series! In this series, I  connect with people from all parts of the legal profession and at all stages of their legal careers to learn who really makes up the legal community and what they are actually doing with their legal degrees. 

This month I, virtually, sat down with lawyer-turned-filmmaker Anthony Desiato. Anthony is a 2012 graduate of the Elisabeth Haub School of Law at Pace University, where he is also the director of J.D. admissions. In this article, Anthony discusses his journey through law school, filmmaking, and what it was like to release his most recent documentary during a pandemic. 

KS:  What motivated you to go to law school? 

AD: It’s funny, because as a law school admissions officer for almost a decade now, I can look back and see that my reasons weren’t necessarily the most compelling. I didn’t have a burning passion for the law, nor did I have my sights set on a legal career. At the same time, my creative ambitions hadn’t fully coalesced just yet. 

I left undergrad knowing that I liked to write and that intellectual property was of some interest to me. I thought that perhaps a job in the entertainment law field could help me get my foot in the door on the creative side. Lastly, there was certainly some parental encouragement to go to law school.

KS:  When and how did you make the jump into making films? 

AD: My undergraduate background is in journalism, and to this day, those journalism classes are the ones I most enjoyed throughout my academic career. It was in those classes that I started developing the tools to tell nonfiction stories in (hopefully!) an engaging way. 

Cut to my 1L year, and although it went well, I knew very early on that I needed a creative outlet. I decided that during the summer before 2L year, I would make a documentary about my local comic shop — write what you know — and that’s exactly what I did. It was definitely a big leap, especially with limited resources and no formal training, but I loved it. It was an exhilarating process.

KS: Are there any ways you feel like your legal education helps you in your filmmaking? 

AD: In a practical sense, my legal training has served me well when it comes to licensing agreements, releases, and copyright and trademark issues, as I’m able to handle those myself. Big picture, though, the old adage has proven true: law school teaches you how to think like a lawyer. I’m not literally IRAC-ing my films, but all kinds of issues come up throughout the making of a documentary, and I’m able to systematically work my way through each one to find a solution.

KS: What drives your passion for creating films? 

AD: We’re talking independent documentaries here, so it’s certainly not money or fame. But aside from the logistical headaches, I genuinely enjoy the process of planning, filming, and editing a movie. 

I’m also a big believer in telling the types of stories I would want to see myself. That’s usually my starting point. There are plenty of great docs out there about global issues or high-profile subjects. Mine tend to be smaller human-interest stories that hopefully people can relate to. I also think it’s great to be able to shine a light on subjects — comic book shops, for example — that are often overlooked. 

KS: Your newest movie, My Comic Shop Country, launched on March 24.  What was it like launching the movie during a pandemic? 

AD: Very odd and unexpected. In a lot of ways, comic shops represent the last stand of brick-and-mortar retail. They’re some of the only places left where genuine conversations and friendships can blossom on a sales floor. So, from my perspective at least, the movie was always relevant, even before the pandemic. However, the current crisis has made the film incredibly timely. 

As for how the timing affected the release, I think it cuts both ways: On the one hand, people may be more conservative with their spending and less likely to rent a movie, or perhaps it’s not on their radar at all because they have more pressing concerns — both of which are completely understandable. The flip side is that people do seem to be craving new content to consume. For comics fans in particular, who are missing their weekly comic book store visits, I’ve gotten a lot of great feedback that the documentary has helped scratch that itch. It also means a lot to me that the movie has brought added attention to the challenges of comics retail during a time when shops are especially hurting.

KS:  What are some themes or takeaways from My Comic Shop Country that non-comic book fans can relate to? 

AD: I went to great lengths to make the film accessible for the noninitiated, so being a comics fan is definitely not a prerequisite to watch. It taps into a very universal need for meaningful face-to-face interaction, a theme that is more resonant today than ever before. 

I’ll relate a film festival anecdote that sums it up best: After one of the film’s screenings, a woman shared that, even though she has a coffee machine at home, she walks to her local deli every morning to get a cup because she likes having the interaction. Even though she’s not a comic book fan, she dialed into the movie in that way. 

KS: What advice do you have for others in the legal community who want to explore or expand on their nonlegal passions? 

AD: This will sound like I have my admissions hat on, but it’s still true: the J.D. is a robust, versatile degree that serves you well no matter what you end up doing. For those who are looking to explore or expand, perhaps this time when we’ve lost our regular routines can be an opportunity to try something new.

Watch the movie on iTunes or Amazon. Visit Anthony’s website, or listen to his podcast for more.

Know someone who would be great to profile in this series? Send an email to info@vincoprep.com with “An Interview With” in the subject line.

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Kerriann Stout is a millennial law school professor and founder of Vinco (a bar exam coaching company) who is generationally trapped between her students and colleagues. Kerriann has helped hundreds of students survive law school and the bar exam with less stress and more confidence. She lives, works, and writes in the northeast. You can reach her by email at info@vincoprep.com.

First he took her job, then he took her bar number. Because Acting U.S. Attorney for D.C. Timothy Shea is a consummate professional!

After former U.S. Attorney for D.C. Jessie Liu was pushed out of the Justice Department in February for failing to deep six the Flynn prosecution, Bill Barr’s henchman Timothy Shea stepped in to do the dirty work.

Here’s Shea’s signature on the DOJ’s Motion to Dismiss the case against Flynn, because lying to the FBI about secret conversations with the Russian ambassador about sanctions is somehow “not material” to an investigation into the Russian government dangling stolen emails in exchange for sanctions relief.

And here’s Jesse Liu’s signature line from a Motion in November arguing that Flynn wasn’t entitled to further discovery after he’d already pled guilty in writing, professed his guilt multiple time under oath in open court, and waived any right to further Brady materials.

Why, hello, D.C. Bar No. 472845. Fancy meeting you here!

First noted by the New York Times, the Department told CNN that the error was due to “clerical oversight.”

The lack of signatures by line attorneys, however, was not an oversight. A.U.S.A. Brandon Van Grack withdrew from the case an hour before the motion was filed, and apparently career prosecutor Jocelyn Ballantine wouldn’t put her name on this motion either. Which left the U.S. Attorney in the odd position of personally vouching for the motion, without support from a single attorney in “his” office.

CNN reports that Ballantine submitted the motion electronically, but was highly unlikely to have made such a glaring mistake, suggesting that the document was prepared at Main Justice and then kicked down to D.C.  Shea is barred in the District, but not admitted to the D.C. District Court and thus could not submit it himself.

Luckily, Jessie Liu wasn’t using her bar number, since Bill Barr burned her career to the ground after she proved more loyal to the rule of law than to President Trump. Pretty convenient, huh?

Filing error adds to twists of Flynn case reversal [CNN]

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Elizabeth Dye (@5DollarFeminist) lives in Baltimore where she writes about law and politics.

The last few weeks have been intense. Each time I open LinkedIn, I see more and more members of the global legal community say goodbye to their jobs.

Mostly, they keep a brave face and express gratitude above all. In response, we all give them likes and messages of support as they begin their uncertain path into many months, at least, of COVID-19 recovery.

The stubborn reality is that millions of professionals are losing their jobs. Many businesses are closing, employees are being laid off, and the legal community will not be an exception. Chances are you will know someone who is affected. It’s all but certain.

Another stubborn reality: Layoffs and furloughs are hard for those who leave and for those who stay. It is an emotional, stressful, and anxious experience for everyone. After all, the questions of “Why me?” or “Will I be next?” are not easy to answer.

The good news: We increasingly normalize the job loss conversation. It only took forever!

The bad news: Not all members of the legal community are comfortable asking for help publicly or even privately. The fear of stigma is real!

Having lived through a few shocks to the system and economic crises in the past, I find that, just like everything else in life, a good strategy will help you survive the storm and thrive once it subsides.

One, eagerly focus on your career and professional development. It may feel like now is not the time to do this, as some people are fighting for their lives. But remember these are not linked events. Now is a good time to research, build relationships, and learn, whether you got laid off or stayed. My interview, Julie Q. Brush, Founder of Solutus Legal, helps us understand the trends and how to address the complex emotions that COVID-19 evokes.

Two, participating enthusiastically in causes you care about can help you get through tough times. It’s a way of socializing. Recently, Breen Sullivan, Chief Administrative Officer at Watermark, explained how The Fourth Floor, the organization she cofounded, has helped attorneys and entrepreneurs strategically focus on their careers as they focus on solving important social issues. After all, it’s hard not to get excited about having an impact, especially during these tough times.

Three, mentorship — whether you give, receive, or both — is more critical today than ever before. Lisa Lang, General Counsel of the Kentucky State University, explained why it is critical to be conscious and intentional in how we show up. After all, everyone is watching the leaders!

These are trying times. With so much fear, uncertainty, and change, it’s easy to throw our hands up and feel like nothing is in our control. But doing so will only exacerbate our feelings of helplessness. Instead, now is the time to focus on what is in our control. It will help us feel sane now — or as close to sane as possible — and even prepare us for the long, difficult road ahead.

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Olga V. Mack is the CEO of Parley Pro, a next-generation contract management company that has pioneered online negotiation technology. Olga embraces legal innovation and had dedicated her career to improving and shaping the future of law. She is convinced that the legal profession will emerge even stronger, more resilient, and more inclusive than before by embracing technology. Olga is also an award-winning general counsel, operations professional, startup advisor, public speaker, adjunct professor, and entrepreneur. She founded the Women Serve on Boards movement that advocates for women to participate on corporate boards of Fortune 500 companies. She authored Get on Board: Earning Your Ticket to a Corporate Board Seat and Fundamentals of Smart Contract Security. You can follow Olga on Twitter @olgavmack.