Am Law 100 Firm Cuts Pay For All To Avoid COVID-19 Layoffs

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If you thought the weekend would somehow stem the rising tide of layoffs, furloughs, and salary cuts that have become Biglaw’s new normal, then you were wrong. May the Fourth be with you if you’ve yet to hear what your law firm’s plans are, whether good or bad.

Today, we have news from Pillsbury, a firm that came in 62nd place in the most recent Am Law 100 rankings, with $677,320,000 in gross revenue in 2019. Pillsbury’s chairman, David Dekker, sent a memo to all employees, describing the “shared sacrifice” that everyone would need to take part in to protect the firm from layoffs. “We know that any sacrifice can be painful,” he wrote, “and hope to scale them in a manner such that they are tolerable for all.” These are the firm’s austerity measures:

  1. Starting in April, partner monthly draws were reduced by a minimum of 25 percent, on a progressive scale so that the higher a partner sits in the draw, the larger his or her percentage reduction;
  2. Starting with May 15 payments, the firm will be temporarily reducing the compensation of associates and counsel in the United States by 20 percent; and
  3. Starting with May 15 payments, all staff compensation will be reduced by up to 15 percent for those who make more than $100,000, except for chief officers who volunteered to take higher reductions, commensurate with those of partners. Employees making less than $75,000 will not be impacted.

“We sincerely hope that this is a short-term measure, although at this point we cannot precisely forecast its duration,” Dekker cautioned. He says he’s hopeful that the firm will be able to offer an “expanded discretionary bonus program” in the future to make up for “at least some of the reductions experienced.”

We reached out to the firm for comment, and a spokesperson had this to say:

Pillsbury has had a strong start to 2020 but the pandemic is both unprecedented and unpredictable, and economic conditions around the world continue to deteriorate. We have therefore implemented a “shared sacrifice“ approach involving temporary reductions of partner draws and associate, counsel, and staff compensation. Partners are leading the way, with the largest reductions.

Hopefully these salary cuts are enough to prevent the firm from conducting layoffs.

(Flip to the next page to read Pillsbury’s memo on salary cuts.)

If your firm or organization is slashing salaries, closing its doors, or reducing the ranks of its lawyers or staff, whether through open layoffs, stealth layoffs, or voluntary buyouts, please don’t hesitate to let us know. Our vast network of tipsters is part of what makes Above the Law thrive. You can email us or text us (646-820-8477).

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Staci ZaretskyStaci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.

The New York Bar’s Misguided Discrimination Against Out-Of-State Law Schools

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As has been widely reported, the New York Board of Law Examiners (BOLE) last Thursday confirmed that the Uniform Bar Examination (UBE) originally scheduled for late July in New York would be administered on September 9 to September 10 instead. No surprise there. What was surprising was the related announcement that BOLE would discriminate in favor of the 15 ABA-approved law schools located in New York state by giving graduates from these schools an exclusive 10-day window (from May 5 to May 15) to apply for September-test seating, before allowing graduates from out-of-state schools to apply for any seats that may (or may not) be available after the in-state schools were served.

I say this is surprising because it is unfair. And unconstitutional. And because one would expect the highest court in New York, which oversees BOLE, to care about such things.

BOLE has a hard job. Because New York is a UBE jurisdiction, and because it may have to administer the September test in a manner that respects social distancing, BOLE may face more demand for test seats than it can accommodate.

But when times are tough, and when there is not enough of something to go around to all who might deserve it, our leaders must set the right tone and the right example. Whether it’s toilet paper or bar-exam seats, hoarding is wrong.

In response to Thursday’s announcement, a group of 21 law deans (I was not among them), from schools outside New York (including Yale, Harvard, and the University of Pennsylvania) whose institutions accounted for over 2,000 New York-bar takers last year, wrote a letter to New York’s Chief Judge. The deans pointed out that many of their 3L or LLM students have returned or relocated to New York to finish the semester and study for the New York exam. For these and other students, traveling to take the test in a UBE jurisdiction outside New York may be stressful and perhaps physically risky during a pandemic. The deans identified scarcity as a key driver of the problem, and offered various suggestions to help — including “[c]reating seats for New York’s administration of the UBE outside of New York State, including, potentially, using some of [the 21 signatory] schools as venues,” and “[o]ffering a second date for New York’s administration of the UBE [on] September 30-October 1 …”

I commend these deans and their earnest efforts to alleviate a scarcity that may be somewhat artificial in the sense that it can be alleviated with creative flexibility. But artificial scarcity is not the only — or even the core — problem with BOLE’s decision.

BOLE’s seat-allocation policy is fundamentally flawed because it is discriminatory — it fails to treat law schools (and their students) throughout the country equally. Scarcity is a fact of life in most situations, and even if the measures suggested in the deans’ letter are adopted, there likely will still be more people who want to take the test in New York in early September than can be accommodated. (In this vein, taking the test in early October is not the same as taking it in early September, and taking the New York bar in, say, DC — if a DC school provides space — is not the same as taking it in New York.) In doling out the September New York-venue slots, BOLE must act fairly and legally, and can’t discriminate against out-of-state institutions (and their graduates) in ways that violate the Commerce Clause of Article I of the Constitution.

The Commerce Clause was the framers’ first line of defense against corrosive barriers to trade and economic balkanization among the states. Even in the absence of affirmative congressional action, the Commerce Clause generally forbids states from favoring in-state economic actors over out-of-state competitors. When a state explicitly treats in-state businesses differently than out-of-state counterparts, federal courts apply a strong presumption against the law and will uphold it only if it survives a form of strict scrutiny — one that requires the law be necessary to achieve an important (and innocent) purpose. BOLE’s announced policy explicitly treats all in-state law schools differently than all out-of-state law schools. It sends a message to law schools and prospective students, at this crucial time when none of us knows how long COVID will remain a problem, that if you want to take the New York bar exam, students from Columbia will be preferred to students from the University of Chicago, and students from Fordham will receive better treatment than those from Northwestern or Illinois. True, maybe people wouldn’t necessarily choose which law school to attend based on this factor alone, but if BOLE can discriminate (openly) a little, then presumably it could do so a lot. And in any event, even a $10 facially discriminatory tax targeting out-of-state entities is invalid unless dictated by a strong government interest.

It’s hard to see what interest could justify BOLE’s policy here. If BOLE believes that graduates from New York-based schools are more likely to be New York citizens than are graduates from out-of-state schools, it runs smack dab into Supreme Court of New Hampshire v. Piper, where an eight-person majority in the Supreme Court said in 1985 it violated the Constitution for a state to reserve bar membership to residents of the state.

Nor does (or could) BOLE suggest that all New York-based law schools teach New York state law more broadly or deeply than do out-of-state schools. And New York’s adoption of the UBE demonstrates it doesn’t use the bar exam to ensure competence in New York law subjects anyway.

What about the possibility that New York-based law school graduates are less likely (than graduates of out-of state schools) to take their UBE score and leave the state to practice elsewhere? There is no empirical evidence showing that this is true, and in any event New York could easily develop other, more calibrated, indicia of likelihood to practice in the state (if that be a legitimate objective) beyond the very crude tool BOLE is using, based on where a law school someone attended happens to be located.

Finally, what about the fact (mentioned by BOLE) that (some) in-state law schools offered to help provide space for the September exam? That can’t justify BOLE’s action. Those New York-based schools that offered space did not do so, I am confident, on condition that they receive favorable treatment. Indeed, I expect most if not all the New York law deans reject homerism as a matter of principle, and frankly I am surprised none of them has said so publicly yet. And in any event, schools outside of New York have made the same offer of space.

In short, it’s hard to imagine any of these (or any other) possible justifications surviving the strict scrutiny applicable to explicit disparate treatment between in- and out-of-state institutions. Truth be told, I would guess most federal judges and constitutional law professors would find a case against BOLE here to be pretty easy on the merits.

Beyond the likely unconstitutionality, think of the message BOLE, alongside the rest of the state, is conveying. We are one nation. New York needs ventilators and masks and doctors, so please send them. Rhode Island authorities are outrageous (and they are) when they target New York license plates. And yet it’s okay for us to discriminate against other states and hoard resources when it serves our needs?
How would the New York judges and New York-based schools feel if the 49 other states said graduates from New York schools can’t get seats at their bar exams — or be eligible for licenses at all? Or if every state discriminated against all graduates from out-of-state schools? That is precisely the kind of economic retaliation and disintegration the Commerce Clause was designed to avoid and to chide, and yet it is exactly what New York is encouraging.

New York is a great state, and this overt favoritism is beneath it. It is, after all, home of the Big Apple, not the Rotten Apple.


Vikram Amar is the Dean of the University of Illinois College of Law, where he also serves the Iwan Foundation Professor of Law. His primary fields of teaching and study are constitutional law, federal courts, and civil and criminal procedure. A fuller bio and CV can be found at https://www.law.illinois.edu/faculty/profile/VikramAmar, and he can be reached at amar@illinois.edu.

​​​Southern Africa: COVID-19 a pretext for surge in harassment of journalists and weakening of media houses by states – The Zimbabwean

“From Madagascar to Zambia, we have seen governments criminalizing journalists and shutting down media outlets that are perceived to be calling out poor government responses to COVID-19,” said Deprose Muchena, Amnesty International’s Director for East and Southern Africa.

“With the disease continuing to spread, and no end yet in sight, there has never been a greater need for accurate news and information to help people stay informed and safe. Yet the authorities across the region are targeting journalists and media houses for their critical reporting on the pandemic which is weakening this vital information flow.”

Attacks on the right to freedom of expression, media freedom and the victimization of journalists for questioning government’s handling of COVID-19 surfaced in Madagascar as the pandemic spread in the region. Publishing director and journalist at the Ny Valosoa newspaper Arphine Helisoa was arrested and put in pre-trial detention on 4 April after she was accused of criticizing the president’s handling of the national response to COVID-19 in an article. She is still in detention in Antanimora prison in the country’s capital Antananarivo. She was charged with spreading fake news and incitement of hatred towards President Andry Rajoelina. Amnesty International is calling for her immediate and unconditional release.

In Zambia, authorities shut down the independent television news channel, Prime TV, on 9 April after cancelling its broadcasting license. The cancellation came after the alleged refusal by the station to air the government’s COVID-19 public awareness campaigns because the station was owed money for airing previous state advertisements different to public awareness. Prime TV, as an independent station, depends on advertising revenue to pay the salaries of its staff and operational costs. The authorities should immediately reverse the license cancellation for Prime TV and allow it to continue broadcasting without any harassment and intimidation.

In Zimbabwe, journalists and newspaper vendors have been subjected to arrests and intimidation during their work in the context of COVID-19. At least eight journalists have faced interference and harassment in the line of their duties. Two journalists, Nunurai Jena in Chinhoyi, and Panashe Makufa in Harare, were accused of working without valid journalism accreditation cards, normally issued by the Zimbabwe Media Commission (ZMC), even though the commission is yet to issue the 2020 accreditation cards to journalists. Both journalists were reporting on the enforcement of the lockdown, including policing. This harassment and intimidation of journalists in Zimbabwe prompted the Media Institute of Southern Africa (MISA) Zimbabwe chapter to eventually seek a High Court order ordering the police and other law enforcement agencies charged with enforcing the COVID-19 lockdown not to interfere “in any unnecessary way” with the work of journalists. The order was granted on 20 April.

In Swaziland, police detained Eugen Dube, journalist and editor of Swati Newsweek Online, for seven hours on 23 April. The detention followed an article he wrote that the King’s public health strategy in the face of COVID-19 was reckless because the country had no social distancing measures in place.

Authorities reportedly tried to charge him for ‘writing ill’ about King Mswati III which could constitute high treason. However, Amnesty International could not independently establish if he would be facing treason charges at the time of writing. In addition, the police seized three smart phones, a laptop, a notebook and other documents related to his work after conducting a search at his residence.

According to news reports, the editor of the Swaziland News, Zweli Dlamini, is also reportedly wanted by the police because of his reporting that the King was sick with COVID-19, but he has not handed himself over. There have been news reports in Swaziland that the King is not in good health, and it is understood that authorities have launched a witch hunt against anyone who connects him to COVID-19.

In South Africa, a journalist working for an online newspaper, News24 was caught  in the crossfire when police fired rubber bullets to disperse pockets of people loitering in the streets of Yeoville, in Johannesburg on day one of the nationwide lockdown. Azarrah Karrim was on the scene filming the incident on a nearby street, when pedestrians suddenly started running to safety after being fired on by the police. In the video, multiple shots can be heard being fired at Karrim, despite her shouting “I’m media” to police.

In Angola and Mozambique, journalists were threatened and prevented from reporting freely on government’s responses to the pandemic, resulting in rumours and stigma about the virus circulating via social media.

“With advertising revenues collapsing due to COVID-19, many media houses will struggle to survive; if you add harassment and censorship by governments, the future of media freedom and independent journalism in the region looks even more gloomy,” said Deprose Muchena.

“Any effective response to COVID-19 will happen in an environment of respect for human rights and where the media is allowed to report freely. Without the media, the public will be in the dark. Southern African authorities must respect the right to freedom of expression and media freedom and stop treating the media with contempt and open up the civic space for journalists to do their work freely and safely. The real enemy is COVID-19, not the media.”

Post published in: Featured

Morning Docket: 05.04.20

* Sadly, it looks like they won’t be making a TV series based on the movie Lincoln Lawyer. Maybe they can just work plot lines into those car commercials with Matthew McConaughey. [Deadline]

* Megan Markle is facing setbacks in her privacy litigation against a British tabloid. [NBC News]

* A lawyer is in hot water after writing a will that named himself the primary beneficiary of a $1.7 million estate. That attorney could use an ethics refresher… [Washington Post]

* If you are looking on LinkedIn for legal freelance opportunities, be sure to check out this article. [Silicon Valley Business Journal]

* Microsoft is facing a class action lawsuit alleging that some XBox controllers are defective. Gamers should receive damages for pain and suffering, gaming is a welcome diversion from COVID-19. [Screen Rant]

* Michael Cohen has been denied early prison release after indicating he will publish a “tell-all” book about President Trump. Guess Cohen doesn’t need to worry about confidentiality since his disbarment… [Business Insider]


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.

Cross-Border Trading in Zimbabwe Becomes Casualty of Coronavirus – The Zimbabwean

Cross-border traders bring goods from abroad to resell in Zimbabwe, and the informal trade ripples through the country’s economy, providing jobs and lowering the cost of staples. Now this industry – and the nation – must reckon with a closed border.

He had just returned from South Africa. He knew it would be his last journey for a while: The border was closed soon after thanks to the spread of the coronavirus.

“I am stressed because I survive wholly from money I earn through driving cross-border traders to and from South Africa,” Ncube says.

The border between the two countries was shut on March 26 after South Africa reported 709 cases of COVID-19, the disease caused by the coronavirus, and Zimbabwe had five reported cases and one death. While the closure was for the sake of public health, it also cut off the livelihood of Zimbabwean cross-border traders, who purchase goods in South Africa for resale in Zimbabwe, and their drivers.

Zimbabwe has 34 confirmed cases of COVID-19 and four deaths as of May 2. Following the closure of the border, the government instituted a nationwide lockdown on March 30, restricting movement to essential trips and services.

Even before the coronavirus outbreak, Zimbabwe was already in an economic crisis with runaway inflation, an unstable currency policy and wide-scale unemployment. Zimbabwe’s exact unemployment rate is unknown, but some estimates put it as high as 90%. Many Zimbabweans have turned to informal employment, including cross-border trading. The industry also supports other professions, including drivers like Ncube.

Zimbabwe’s cross-border traders are an important part of the country’s economy. They supply cash-strapped consumers with goods at a lower cost than in formal supermarkets. Cross-border trading is also a good source of income, with the average cross-border trader earning about 12,000 South African rand (ZAR) ($639) a month in sales, according to a 2017 Southern Africa Migration Programme report.

I am stressed because I survive wholly from money I earn through driving cross-border traders to and from South Africa.

Before the closure, Ncube would make four or five trips a month, earning about 1,500 ZAR ($80) each time. But now he’s left with no choice but to stop driving – and give up his income.

“We have to obey the law,” he says.

Ithiel Munyaradzi Mavesere, an economics lecturer at the University of Zimbabwe, says the cross-border trading industry has the most workers in the informal sector, with many traveling both within the region and farther abroad.

Killer Zivhu, president of the Zimbabwe Cross-Border Traders Association, agrees, adding that cross-border trading is an important income source for the country.

“Many earn a living through this trade,” Zivhu says.

The spread of the coronavirus quickly shuttered cross-border trading here, though many were hesitant to believe the scope of the pandemic.

Patson Chiva has been a cross-border trader for five years. He says he initially ignored reports of the coronavirus, believing it would not affect people here, who have recently seen cholera and typhoid outbreaks. Misconceptions about who could become infected were prominent, he says.

“I thought as a black person I was immune to this disease,” he says. “But I later realized that this is something different.”

Like Ncube, cross-border trading is Chiva’s only source of income, which he uses to support a family. But with the border shut, he has no way to provide for them.

“I have three children and parents who are in the rural areas who depend on me for survival. If this lasts, I do not know how I will be surviving and taking care of my dependents,” he says.

Zivhu says the coronavirus has put many cross-border traders in a dire situation. Many live a hand-to-mouth existence and must sell goods to earn money, he says. Closing the border with South Africa has left the traders and workers who support them vulnerable and without money to pay for rent, school fees or even food. Zivhu likens it to a natural disaster.

“It’s like they have been affected by floods and left in an open space,” he says.

Gamuchirai Masiyiwa, GPJ, translated some interviews from Shona.

Death of Zimbabwe’s economy – Zimbabwe Vigil Diary – The Zimbabwean

He was speaking at State House while accepting donations for the fight against the coronavirus (see: https://www.chronicle.co.zw/better-the-economy-dies-than-our-people-president-mnangagwa/).

Mnangagwa later went on to extend the lockdown and announce a massive US $720 million stimulus for the economy (see: https://www.reuters.com/article/us-health-coronavirus-zimbabwe-idUSKBN22D5SJ).

But where is the money coming from? The Vigil’s guess is that it will come as usual from bleeding the people through massive inflation. Finance Minister Mthuli Ncube is earlier reported to have warned that if Zimbabwe didn’t get a big bailout it would again have to resort to printing money.

The respected London-based magazine Africa Confidential said Ncube had written to the international financial institutions based in Washington appealing for money to save the country from disaster.

The magazine says it has seen a copy of the letter, which warned that the situation in Zimbabwe is so bad that it could cause an implosion of the state and threaten security in neighbouring countries.

It quoted Ncube as acknowledging ‘recent policy missteps’ which had seen inflation soar to over 500%. He said that without help the government would have to revert to printing money, risking a return to hyper-inflation and the crash of the Zimbabwe dollar.

In the letter Ncube asks for the rescheduling or cancellation of Zimbabwe’s foreign debt arrears and US $ 200 million to fight the coronavirus. He promises in return to introduce a market-determined exchange rate and end the Reserve Bank’s ‘quasi fiscal operations’.

Africa Confidential observes: ‘this according to finance officials in Washington is code for saying conditions are so horrendous that Ncube has been given the political cover to promise a crackdown on grand corruption at the heart of government’.

The magazine says that neither the World Bank not the International Monetary Fund have responded officially to Ncube’s letter, nor do they intend to do so despite him following up with phone calls. An official is quoted as saying: ‘Zimbabwe is a political, not an economic policy crisis and . . . Without credible change on that level nothing else will move’.

The magazine sums it up: ‘Senior finance officials in Washington say that grand corruption and state violence have to go before they resume economic co-operation with Zimbabwe (see: https://www.africa-confidential.com/article/id/12945/Government_close_to_collapse_as_it_sends_plea_for_cash).

So dust off your old trillion dollar notes!

 

Other points

  • While the Mayor of Harare begs the government vainly for money to keep the city going because people have stopped paying rates, two rich Zanu PF people are speaking of arranging a race between their supercars for a bet of US$ 50,000. And Mnangagwa hires a plane to fly from Dubai to take him on a flip to Mozambique . . . (see: https://iharare.com/zimbabwe-lamborghini-mp-challenges-colleague-to-us50-000-supercar-race/).
  • Because of the coronavirus we can no longer physically meet outside the Zimbabwe Embassy in London, so we have started a virtual Vigil. We asked our activists to put on Vigil / ROHR / Zimbabwe regalia and take a photo of themselves holding an appropriate poster reflecting our protest against human rights abuses in Zimbabwe. The photos will be uploaded on our Flickr site.
  • For Vigil pictures check: http://www.flickr.com/photos/zimbabwevigil/. Please note: Vigil photos can only be downloaded from our Flickr website.

NOTICES:

  • The Restoration of Human Rights in Zimbabwe (ROHR) is the Vigil’s partner organization based in Zimbabwe. ROHR grew out of the need for the Vigil to have an organization on the ground in Zimbabwe which reflected the Vigil’s mission statement in a practical way. ROHR in the UK actively fundraises through membership subscriptions, events, sales etc to support the activities of ROHR in Zimbabwe. Please note that the official website of ROHR Zimbabwe is http://www.rohrzimbabwe.org/. Any other website claiming to be the official website of ROHR in no way represents us.
  • The Vigil’s book ‘Zimbabwe Emergency’ is based on our weekly diaries. It records how events in Zimbabwe have unfolded as seen by the diaspora in the UK. It chronicles the economic disintegration, violence, growing oppression and political manoeuvring – and the tragic human cost involved. It is available at the Vigil. All proceeds go to the Vigil and our sister organisation the Restoration of Human Rights in Zimbabwe’s work in Zimbabwe. The book is also available from Amazon.
  • Facebook pages:
    Vigil: https://www.facebook.com/zimbabwevigil
    ROHR: https://www.facebook.com/Restoration-of-Human-Rights-ROHR-Zimbabwe-International-370825706588551/
    ZAF: https://www.facebook.com/pages/Zimbabwe-Action-Forum-ZAF/490257051027515

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World Press Freedom Day: Journalism without fear or favor – The Zimbabwean

The Zimbabwe Human Rights NGO Forum and Media Monitors join the world in commemorating World Press Freedom Day under the theme – Journalism without fear or favorWorld Press Freedom Day was proclaimed by the United Nations General Assembly in December 1993 and provides an opportunity to celebrate the fundamental principles of press freedom and calling for an environment that is open and safe for journalists to perform their critical role in society.

The Forum and Media Monitors pay tribute to journalists who have braved quarantine conditions to fearlessly and dutifully serve the world with critical updates on the COVID-19 pandemic as well as media practitioners who risk arrest, death or abduction in the line of duty or for speaking truth to power. Journalists like Itai Dzamara, abducted by suspected state security agents on the 9th of March in 2015 remain unforgotten.

As Zimbabwe has been under lockdown from 30 March 2020 due to the COVID-19 pandemic, at least 12 journalists have been detained and harassed by the police for conducting their duties without current accreditation cards despite a statement by the Zimbabwe Media Commission that “All journalists with such expired cards are free to conduct their duties without hindrance…” Journalists play a critical role in society as they provide an essential service as acknowledged in Section 2J of Statutory Instrument 83 of 2020. State security agents are implored to appreciate the role played by the media in emergency situations.

The Forum and Media Monitors encourage Zimbabwe’s authorities to be mindful of the fate of journalists as they reform the country’s media laws. It is critical for state authorities to put in place mechanisms that allow journalists to freely exercise their journalistic privilege. This will empower media practitioners to serve Zimbabwean citizens with accurate and balanced information which will in turn dilute the impact of the scourge of fake news that has corrupted society’s perception of reality.

Freedom of expression and access to information are enshrined in Zimbabwe’s Constitution (Section 61 and 62) as well as other regional and international conventions. Journalists play a critical truth-telling role, which is important for a democratic society based on openness, justice, human dignity, equality and freedom, as proclaimed by the Constitution.

The Forum and Media Monitors call on the government to observe the following guidelines for providing safety for journalists and other media practitioners provided under principle 20 of the African Commission on Human and Peoples’ Rights Declaration of Principles on Freedom of Expression and Access to Information in Africa:

●      To guarantee the safety of journalists and other media practitioners.

●      To prevent attacks on journalists and other media practitioners, including murder, extra-judicial killings, torture and other forms of ill-treatment, arbitrary arrests and detention, enforced disappearances, kidnapping, intimidation, threats and unlawful surveillance undertaken by State and non-State actors.

●      To raise the awareness and build the capacities of journalists and other media practitioners, policymakers and other stakeholders on laws and standards for ensuring the safety of journalists and other media practitioners.

●      To investigate, prosecute and punish perpetrators of attacks against journalists and other media practitioners.

●      To ensure the safety of female journalists and media practitioners by addressing gender specific safety concerns, including sexual and gender-based violence, intimidation and harassment.

Post published in: Featured

Zimbabwe facing ‘catastrophe’, economy could shrink by 20% without coronavirus aid – finance minister – The Zimbabwean

Mthuli Ncube

Zimbabwe’s finance minister, Mthuli Ncube, has issued an impassioned plea to international finance institutions, laying bare the country’s battered economy and saying it faces “catastrophe” if it does not access critical bailout funding to fight the combined impact of crippling drought and the coronavirus pandemic.

In a leaked letter, the authenticity of which has been confirmed by a senior government official, Ncube wrote to the International Monetary Fund, the World Bank and other international institutions, saying the country faced record poverty levels.

Ncube said without a transformative arrears clearance and re-engagement plan, Zimbabwe could “suffer a health and economic catastrophe” and the economy could contract by as much as 20%.

“This is a massive contraction with very serious social consequences,” that could “raise poverty to levels not seen in recent times,” reads part of the letter.

Zimbabwe, which cleared its debts with the IMF, still owes other international lenders more than US$9 billion, and has, since 2009, struggled to restructure these debts.

No support forthcoming

The debt arrears have contributed to Zimbabwe being unable to access any global funding to combat the impact of the Covid-19 pandemic.

At this year’s spring meetings, IMF Director: African Department, Abebe Aemro Selassie, told a press conference that Zimbabwe was not eligible for international support.

“Unfortunately, Zimbabwe continues to have arrears to the World Bank and AfDB which is a constraint on our ability to lend to the country,” Selassie said.

Not enough money locally

In his letter, however, Ncube said domestic resources to mitigate the impact of the pandemic were insufficient.

This is at a time the Covid-19 pandemic is expected to have a devastating health, humanitarian and economic impact on Zimbabwe, he added.

Ncube said there was simply no fiscal space to intervene, meaning there could be a drastic increase in already-unmanageable inflation rates, and the exchange rate could be destabilised.

Promise of reforms

In an unexpected move, he acknowledged that there are necessary reforms President Emmerson Mnangagwa’s government must undertake, including contentious political reforms.

In return, Ncube is hoping for a debt rescheduling of 15 years, or cancellation of all official bilateral arrears.

The eventual normalisation of financial relationships will make Zimbabwe eligible for various support facilities available to fragile countries.

Post published in: Business

Zimbabwe extends coronavirus lockdown again, announces $720 millionstimulus – The Zimbabwean

FILE PHOTO: A man is tested by a healthcare worker during a nationwide lockdown to help curb the spread of the coronavirus disease (COVID-19), at a mass screening centre, in Harare, Zimbabwe April 30, 2020. REUTERS/Philimon Bulawayo

The southern African nation first announced a three-week lockdown in March and then extended that, prior to the latest extension. The lockdown has shuttered an economy struggling with acute shortages of foreign currency, food, electricity and medicines.

Informal markets – where more than 80% of Zimbabweans earn their living – will remain shut, while big businesses will reopen under supervision.

Mnangagwa said public gatherings of more than 50 people and the use of public taxis remain suspended, while schools will remain closed.

He said the 18 billion Zimbabwe dollar stimulus package ($720 million), which is just more than a quarter of this year’s national budget, would also benefit smaller businesses which are hardest hit by the lockdown.

Mnangagwa did not say how the package would be funded.

“The package is proportionate to the disruption the virus has caused to the national economy,” he said in a televised speech.

Health workers would not be taxed for the next six months to boost their earnings, the president said.

Zimbabwe has recorded 40 cases of the new coronavirus and four deaths so far.

Post published in: Business