In Search Of Innovation At 3 Legal Conferences

Barely into February, I have already this year attended three conferences purportedly about innovation in law. I started in January in Portland, Ore., with the Legal Services Corporation’s Innovations in Technology conference, then hit two last week in New York: the venerable Legalweek, presented by ALM, and the second Inspire.Legal, presented by the New York Legal Tech Meetup and New York Law School.

About this time last year, after attending the same two New York conferences, I wrote a column here, Legal Tech For The Legal Elite: Observations Of Two Conferences, in which I bemoaned legal tech conferences “dedicated to the 10 percent in law who make up big firms and big corporations” and wondered “how legal tech and innovation became the domain of the legal elite, and how true change will come about in law without more voices at the table.”

As I noted in that column, the two New York conferences are very different. Legalweek is the rebranded version of Legaltech, a show presented annually since 1982, where buyers of legal technology go to shop for products and attend educational sessions. Inspire.Legal was brand new last year, aiming to be a fresh and creative attempt to explore the problems that face the legal industry and begin to craft solutions.

In addition to being in New York in the same week, the two conferences share another characteristic: They are predominantly by, for and about the roughly 10 percent of the legal industry dominated by the world’s largest law firms and corporations.

As you might imagine, the LSC conference falls at the other end of the legal industry spectrum. Rather than big firms and big companies, its focus is on expanding access to justice by promoting technological innovations in the delivery of legal services to low income and pro se individuals.

In my column last year, I noted that Inspire.Legal’s promotional materials had vowed it would break out of the “innovation echo chamber.” Yet its panelists, moderators and participants  were a virtual “who’s who” of echo chamber regulars, and in particular the echo chamber that focuses on large firms and large corporations.

My column was interpreted by some as a criticism of Inspire.Legal. I did not mean it as such. I eagerly returned this year and even — as “master of ceremonies” Matt Homann, CEO of Filament, jokingly pointed out in his opening remarks — paid to register rather than seek a free media pass.

In fact, Inspire.Legal is a fantastic conference, one where there are virtually no panels or keynotes or roomfuls of exhibitors. It is a conference at which participants are pushed to put on their thinking caps, mostly in small groups and breakout sessions, to define the issues that inhibit innovation in law, and then begin to tackle solutions.

Rather, the point I’d sought to make last year was that there are many voices excluded from these conversations around innovation, voices that need to be at the table if meaningful innovation is ever to occur. I wrote:

If we truly want to solve the problems that face the legal system, the legal system as a whole, then we need to find ways to bring together all the stakeholders. That means Biglaw and small law, big business and small business, clients and those who cannot afford to become clients, those embroiled in the system and those excluded from it.

Yet as I sat at Inspire.Legal this week, I found myself internally rephrasing that echo chamber concept. In place of echo chamber, the word that came into my mind was “vanguard” — those who lead the way in bringing about new developments, new ways of doing things.

As I sat at Inspire.Legal, there was no question that the people there represent the vanguard in driving legal innovation. At the LSC conference last month, I felt the same way. These are the true believers, the people who see the need for and potential of innovation in law — and who are devoting themselves to making it happen.

Yes, one group is focused on the wealthiest sectors and the other on the poorest. But maybe that is the way it needs to be for now. The legal services industry is a behemoth made up of many different professionals and entities serving many different audiences, with a vast array of different problems and needs.

Of necessity, perhaps, innovation has to begin in pockets in order to someday expand universally. Innovation in serving the rich will drive changes that benefit the poor, and innovation in serving the poor will drive changes that benefit higher-income clients.

Do those who are pursuing innovation in law all need to be at the same table? Probably not. There can be, and probably should be, multiple vanguards, each pushing forward from wherever is their starting point. Inspire.Legal lived up to its name, inspiring creative thinking among a group of attendees who are already at the forefront of innovation. The LSC conference was the same, inspiring new approaches to serving the legal needs of the poor. Even in separate pockets, this is progress.

All of that said, I cannot help but believe that legal innovation would best be served by somehow bringing together these vanguards in a common forum. I have not said much in this column about Legalweek, but I wonder whether the Legalweek concept could be broadened in a way that serves this end.

Before there was Legalweek, there was Legaltech. With the soaring growth over the past decade of e-discovery technology, Legaltech became so dominated by e-discovery that it drowned out everything else. In 2017, ALM expanded Legaltech into Legalweek, with the goal of moving it beyond e-discovery and bringing in new voices and new areas of focus.

The idea made sense, but the execution remains a work in progress. It is still a conference that, like Inspire.Legal, is dominated by big firms and big corporations. In the first year of Legalweek, the conference included a track for solo and small firms that, unfortunately, bombed — probably because, until then, no one equated the conference with the small firm market.

But if the organizers really want a “Legalweek,” then maybe it should become a conference that somehow bridges all sectors of the legal-innovation world — that is a legal week for everyone in legal.

Or maybe it is time for a new conference, one that brings together those in the vanguard of innovation across all sectors — legal aid, small law, Biglaw, self-represented, law schools, courts, and clients of all kinds. Maybe it should even include those from outside law — healthcare, social services, government — where legal problems intersect.

Pie in the sky, perhaps. Meanwhile, I applaud those in the vanguard — whichever vanguard they’re in. The legal industry is evolving for the better, and they are leading the way in making that happen.


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).

Press Gags: Why They Help The Prosecution And Never The Defense

(Photo by Kena Betancur/Getty Images)

When P. T. Barnum said “there’s no such thing as bad publicity,” he wasn’t thinking of a defense attorney’s job in high-profile cases where everything said about her client is damning.

Every high-profile case, whether it involves Bill Cosby, Harvey Weinstein, or a gruesome murder, draws extensive media attention, most of which has the defendant convicted before setting foot in a courtroom.

Dealing with the media is tricky at best but even more so when a judge issues gag orders instructing both sides, prosecution and defense, not to speak to the media.

While the judge thinks he may be evening the playing field, he’s actually only handicapping the defense. That’s because a gag order doesn’t prevent prosecution witnesses or their families from speaking to the media, posting online, appearing on television shows, or writing books. Because their points of view mirror the prosecution’s, only the defense is hamstrung.

The defendant, generally in jail on violent cases, doesn’t have the same access to the media as prosecution witnesses. Even if he did, no defense lawyer worth his salt would advise his client to be interviewed by a reporter prior to the trial. There’s just no telling what question might be asked and how any answer, no matter how seemingly innocuous, could be used against him.

I recently tried a high-publicity murder case involving the killing of a 15-year-old outside a bodega in the Bronx. News of the killing went viral when a video of it was released either by police who’d seized it or the victim’s parents.  Within days it had over 2 million views.

Because of the tsunami of prejudicial pretrial coverage, the judge imposed a gag order prohibiting lawyers from both sides from speaking to the media.  We had a defense, but there no way to present it to the public. By the time trial came, the family had appeared on news and entertainment shows, started their own twitter feeds on “Justice for Junior” (the victim in the case), and was interviewed on a daily basis during the trial by media waiting in the hallway, hungry for leads.

Prosecutors had a de facto way to present their case. We were silenced.  When I asked the judge to impose an order prohibiting the family from speaking to the media, he responded he had no power to do that.

All five defendants were convicted.

I see the same thing happening in the Weinstein case. Detailed reports are released daily of what the prosecution witnesses say, but the defense side can only be presented by pool reporters who pick up clues from cross-examination. There’s nothing direct, concrete, or quotable.

Witnesses and nonwitnesses alike, represented by people like Gloria Allred, appear on television shows to further promote the prosecution’s narrative.

Meanwhile, defense attorney Donna Rotunno was chided in court Friday for speaking to the New York Times although the interview, released just recently, actually occurred before the gag order was imposed.

Prosecutors downplay the inequity, saying jurors are instructed to ignore the media. But let’s face it, anyone in the last month opening a browser to look at his email has been confronted with news about the Weinstein case.

If the family of victims and sundry prosecution witnesses and hangers-on are allowed to disseminate their views to the media, defense counsel should have equal access.

For lawyers facing this issue, I have a suggestion.  First, argue against a gag order as it only prevents the defense message from being heard. These cases are fought in part in the court of public opinion, not just the courtroom.

Next, if it looks likely a judge will shut down media communication, get out in front of it by offering your defense early and often.

Easier said than done because defense attorneys often don’t know exactly what their defense will be until seeing what evidence is presented. But if positive media statements are phrased generally enough and suggest a plausible defense, the gamble’s worth it to get more than just the prosecutor’s version to the public.

Remember, it’s from those very people that an impartial jury is supposed to be chosen.


Toni Messina has tried over 100 cases and has been practicing criminal law and immigration since 1990. You can follow her on Twitter: @tonitamess.

Lessons Learned From Trials

At my firm, I was trained to do a responsible direct examination:  Questions should not be leading. Questions should not be compound. Questions should not call for narrative answers. For the most part, don’t do things that are objectionable.

Then you try a case.

The lawyer on the other side opens every direct examination of fact witnesses with this question: “Please tell us a little about yourself — where you were born, where you grew up, where you went to school.”

That question’s an outrage! It’s compound! It calls for a narrative answer! How dare he!

But you really shouldn’t object.

Objecting to this question would make you look like a jerk. Why wouldn’t you let the witness give a little basic background information? It’s true you could (if the judge were leaning your way) make the witness break down the information into parts: Where were you born? Where did you grow up? Where did you go to high school? Where did you go to college?

But why?

You’d look silly insisting on this. The background information is relevant. There’s unlikely to be a dispute about it. It takes less time to present this as a narrative than it does to do this in question-and-answer form. You might as well let the witness provide the information.

It’s also a great question from the perspective of the lawyer doing the direct examination.

The lawyer doing the direct wants the witness to become comfortable in the jury box. The lawyer wants the jury to get a sense of the witness as a person. Letting the witness speak about basic information for a minute or two at the beginning of the testimony serves those purposes.

To heck with what they taught you at school or in your law firm.

Open your direct examination of every fact witness with: “Please tell us a little about yourself — where you were born, where you grew up, where you went to school.”

(Note that the question asks the witness to “tell us,” rather than to “tell the jury.” That’s just basic psychology. You want to be on the jury’s side: We’re all in this together; we all have to get educated; please tell us what the answers are. You don’t want to build a wall between yourself and the jury: “I’m smart and already know the answers to all of these questions. But those foolish jurors don’t know anything. Why don’t you tell the jury the answers to these questions; I’ll just stand around waiting for you to finish.”)

Here’s another thing you learn from experience: At your firm, you’re told to be perfect in front of a jury. Never make a mistake. The performance before the jury must make you look like a skilled surgeon; everything is studied in advance and carried out to perfection. No errors.

Then you watch a good cross-examiner in action:

“Let’s see. You were paid $10 million under the first contract and $10 million under the second contract. I’m not so good at math. So what’s that? Ten million plus ten million equals $30 million in total?”

“Objection!  The arithmetic is wrong!”

The jury, now awake and paying attention because there’s some action in the courtroom, looks up to see what’s causing the commotion.

“Oh, I’m sorry.  You’re right.  There were actually three contracts. I forgot about the third one. So it’s 10 plus 10 plus another 10, for a total of $30 million. The defendant cheated you out of $30 million. Is that right?”

I saw one clever counsel do this repeatedly throughout trial. The other side never caught on. The arithmetic was always wrong; the other side always objected to counsel’s arithmetic; the jury always looked up; and counsel always “corrected” himself in a way that improved his case.

Don’t fall for it. Some errors are intentional.

One last thought: Sneak in the objectionable, but interesting, stuff when no one is paying attention.

At a trial in the 1980s, I watched this:

“Where did you go to college?”

“Harvard.”

“When did you graduate?”

“1940.”

“Wasn’t that about the time President Kennedy was there?”

“Oh, yeah. Jack Kennedy and I were co-captains of the sailing team.”

“Objection! Irrelevant!”

“Sustained. The jury will disregard the answer to the last question.”

Jury: This witness was co-captain of the Harvard sailing team with JFK? That’s a little Preppie, but what a cool guy! I’ll listen very closely to, and tend to believe, what he has to say.

They don’t tell you that stuff in your trial practice classes.


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.

The Best Law Schools For Diversity (2020)

Law schools have been doing their very best to recruit diverse students and professors; in fact, there’s now a record number of law school deans and faculty members of color, which is a big positive. If you’re a person of color searching for a law school where you’ll be truly valued for who you are as a person, rather than a law school where you’ll be nothing more than a face in marketing materials to promote diversity and inclusion efforts, then have we got a ranking for you.

In the latest edition of the Best Law Schools for Diversity ranking, National Jurist’s preLaw magazine presents the top law schools for each major minority category in the nation: African Americans, Asians, Hispanics, and Native Americans. The following criteria were considered for inclusion on this year’s list:

We graded each school on three data points: 1) Percentage of students in each ethnic group (50%); 2) Percentage of minority law professors (25%); 3) Diversity services offered by the school (25%).

Student enrollment was determined by adding the number of students who identify as members of each ethnic group with a ratio or students who are two or more races and dividing by the number of students for whom race is known. Data is from the ABA.

Faculty figures are based on the total number of minority faculty members at each school. Data provided by the ABA.

Services are based on: office or administrator who assists minorities (36%); bar exam preparation support (18%); whether the school has a mentoring program for minorities and/or first generation law students (11%); whether the school has student groups that promote the needs of each ethnicity (11%); whether the school has endowed scholarships for minorities (11%); whether the school offers a summer law school preparation program for admitted students (7%); whether the school offers employment workshops designed to help minority students (7%). Data provided by the schools.

Without further ado, here are the top 5 law schools for African American students, Asian students, Hispanic students, and Native American students:

African American Students

  1. Howard University School of Law
  2. Southern University
  3. Texas Southern University
  4. North Carolina Central University
  5. Florida A&M University

Asian Students

  1. University of Hawaii
  2. UC Irvine
  3. UC Davis School of Law
  4. UC Hastings
  5. Santa Clara Law

Hispanic Students

  1. Southwestern Law School
  2. UNM School of Law
  3. Texas Southern University
  4. Florida A&M University
  5. University of Miami School of Law

Native American Students

  1. UNM School of Law
  2. University of Oklahoma
  3. University of Arizona
  4. University of Tulsa
  5. Oklahoma City University

Congratulations to each of the law schools listed and all of their students!

Click here to see the full rankings, courtesy of preLaw magazine.

Best Law Schools For Diversity [preLaw magazine]


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.

Getting Kids Into Georgetown, USC Just Got Slightly More Expensive For Ex-PIMCO CEO

Boston Red Sox Counsel Knew That One Was Coming

With daily fantasy expanding across the nation, inveterate cheating like MLB caught the Houston Astros and Boston Red Sox wrapped up in now has a potentially bigger pricetag. A Massachusetts man filed a proposed class action looking to recover millions in losses incurred by unlucky players who couldn’t figure out why their opponents kept crushing them stockpiling Red Sox.

The teams apparently used equipment to steal signs and sending in the cues to batters by beating a garbage can. Careful review of Houston’s world championship season is downright hilarious because when you know what to listen for it’s clear the Astros did more tubthumping than Chumbawamba.

The Red Sox have hired Cravath for the matter, bringing Judge Katherine Forrest back to the SDNY on the opposite side of the bench after she left her seat in 2018. The appearance was about coming full circle in another way since she appeared before Judge Jed Rakoff… the judge she originally replaced on the court.

Thanks to some inside tips, Judge Forrest wasn’t going to be thrown by some needling. From Law360:

“What was that name again?” Judge Rakoff quipped, drawing a smile in court from Forrest, the retired legal umpire who made her return to Manhattan federal court after leaving the judiciary in 2018 to rejoin Cravath Swaine & Moore LLP.

Zing.

Ex-Judge Endures Ribbing From Rakoff In Return To Court [Law360]


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.

Morning Docket: 02.10.20

* A Daytona Beach attorney has been disbarred in part for using money out of his trust account to run a strip club. That sounds Florida af. [News Journal]

* Harvey Weinstein’s lawyer caused a stir for implying that women may share some of the blame for being the targets of sexual assault. [New York Daily News]

* Michael Avenatti is still unsure if he will take the stand in his ongoing criminal trial. [New York Post]

* A federal appeals court handed President Trump a win last week when it threw out a lawsuit filed by democratic lawmakers about business payments. [Fox News]

* The Manhattan DA’s office may be reopening its case on the assassination of Malcolm X. Just started watching the Netflix series about this! [Washington Post]


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.

Wheels coming off – Zimbabwe Vigil Diary – The Zimbabwean

They are said to have deployed large numbers of intelligence officers in civilian clothes around the country. They are also said to fear mutiny by disgruntled soldiers (see: https://www.theindependent.co.zw/2020/02/07/panicky-army-chiefs-deploy-special-forces/).

While there is widespread hunger as food prices rise and the Zimbabwe dollar withers, vegetables in urban markets are rotting because people can’t afford to buy them (see: https://reliefweb.int/report/zimbabwe/vegetables-rot-food-markets-across-zimbabwe-while-half-population-faces-food).

Women are bearing the main share of the burden. A survey by Transparency International Zimbabwe said more than 57% of women had been forced to offer sexual favours in exchange for jobs, medical care and even seeking placements at schools for their children. The organisation said in its report: ‘sex is a currency in many corrupt deals in Zimbabwe’. (see: https://www.theguardian.com/global-development/2020/feb/08/more-than-half-of-women-in-zimbabwe-have-faced-sextortion-finds-survey).

Discord within the ruling party is further destabilizing the country. Three Zanu PF youth leaders have been suspended by the Politburo after calling a news conference to accuse some of Mnangagwa’s close allies of corruption. Secretary for Youth Affairs Pupurai Togarepi was stripped of his position and Youth Political Commissar Godfrey Tsenengamu and Deputy Secretary for Youth Affairs Lewis Matutu were demoted and ordered to go for ‘political orientation’ at the Herbert Chitepo School of Ideology.

President Mnangagwa was particularly critical of Togarepi because, he said, he had appointed him to his post even though he was not qualified being 56 years old. For his part, Matutu said afterwards that he would continue fighting corruption. He declared that he would ‘rather die for something than live for nothing’ and added that 2020 would be the beginning of a decade of action by youths.

Tsenengamu said he would not attend the six-month course at the Ideology school. Those who had ordered it should be the ones going there. ‘I do not care what will happen next. I am part of society, live in society and know what corruption is doing to the livelihoods of ordinary people.’

The youth leaders accused three controversial business tycoons, Kuda Tagwirei, Billy Rautenbach (the Green Fuels boss) and Tafadzwa Musarara (Chair of the Grain Millers’ Association) of corruptly grabbing all government tenders.

Matutu said “Let me talk about Tagwirei. I really want to know why he is the one who supplies everything to government — fuel. If we go to Command Agriculture, it’s him at the helm. There was an attempt to investigate him, but he evaded. He has tentacles everywhere, including the money on the black market, he controls that.’ (See: https://www.newsday.co.zw/2020/02/zanu-pf-youths-finger-ed-allies/ and https://zwnews.com/unfazed-matutu-says-fight-continues-declares-decade-of-action-as-zanu-pf-implodes/).

Other points

  • Many starving people must be amazed by the Zanu PF-connected businessman Genius Ginimbi’s court battles as he faces a new charge of fraud in connection with importing another Bentley. He recently shared on his Instagram account a video of himself buying a 2-seater Ferrari 488 Spider for US$350,000 to join his collection of super cars at his mansion in Dombashawa which includes 2 Rolls-Royces and 3 Bentleys among many other top range cars (see: https://www.newsday.co.zw/2020/02/socialite-ginimbi-arrested-for-fraud/).
  • The Zimbabwe government is to waste US$4.5million on sending tame members of the government-appointed Political Actors’ Dialogue (POLAD) on foreign trips to promote government policiies, POLAD has been boycotted by MDC leader Chamisa (see: http://www.newsdzezimbabwe.co.uk/2020/02/polad-foreign-trips-to-gobble-us45m.html).
  • Zimbabweans who have complacently regarded themselves as somehow better than Malawians may have to rethink following the Malawian court ruling that their country’s election last year was rigged – a shock to the system in Zimbabwe where this would be impossible because our rigging is so superior.
  • Thanks to those who came early to help set up the front table and put up the banners: Daizy Fabian, Deborah Harry, Jonathan Kariwo, Netsayi Makarichi, Chido Makawa, Rosemary Maponga, Benjamin Molife, Esther Munyira, Molly Ngavaimbe, Tsitsi Nyirongo, Qiniso Sibanda, Bigboy Sibanda, Ephraim Tapa, Kevin Wheeldon and Nattalie Zvoma. Thanks to Rosemary for looking after the front table, to Chido, Benjamin, Tsitsi, Bigboy, Kevin and Nattalie for handing out flyers, to Chido for drumming, to Deborah, Chido and Jonathan for photos, to Molly for the opening prayer, to Tsitsi for donating a rattle and to Rosemary for bringing tea, coffee and cakes.
  • Thanks to those who have contributed to the ROHR’s Valentine fundraising dinner: Pamela Chirimuta, Ragarirai Chivaviro, Simbarashe Jingo, Netsayi Makarichi, Chido Makawa, Garikai Mananje, Benjamin Molife, Washington Mugari, Margaret Munenge, Molly Ngavaimbe and Ephraim Tapa. Thanks also to Happy Chazuza for his contribution to the ROHR Mtoko irrigation project
  • For latest Vigil pictures check: http://www.flickr.com/photos/zimb88abwevigil/. Please note: Vigil photos can only be downloaded from our Flickr website.

FOR THE RECORD: ­­­18 signed the register.

 

EVENTS AND NOTICES:

  • ROHR Valentine’s fundraising dinner dance. Saturday 15th February from 6 pm till late. Venue: 38 Marcon Place, London E8 1LP. The event is in aid of women living with HIV/AIDS in rural Zimbabwe. Tickets £30. Contact: Esther Munyira 07492058107, Molly Ngavaimbe 07415443973, Patricia Masamba 07708116625 and Margaret Munenge 07384300283.
  • ROHR general members’ meeting. Saturday 14th March from 11.30 am. Venue: Royal Festival Hall, South Bank Centre, Belvedere Road SE1 8XX. Contact: Ephraim Tapa 07940793090, Patricia Masamba 07708116625, Esther Munyira 07492058107.
  • 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.
  • World Day of Prayer for Zimbabwe. Friday 6th March. This year the focus is on Zimbabwe and the service has been prepared by Christian women in Zimbabwe. The theme is ‘Rise! Take you mat and walk’. Christians all round the world will be praying for Zimbabwe. Try to get your own church involved. For more information check: https://www.wwdp.org.uk/.
  • Living on the Edge. Tuesday 10th March from 7 – 9 pm (doors open at 6 pm). Venue: Royal Geographical Society, 1 Kensington Gore, London SW7 2AR. The event is organised by the Mike Campbell Foundation. Among the speakers are Chief Felix Ndiweni and Beatrice Mtetwa. For full details: https://media.wix.com/ugd/02876c_5b68a136280c42ebbf39f8ebbb722299.pdf.
  • 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

Post published in: Featured

In Cash-Strapped Zimbabwe, Convenience of Mobile Money Comes at a Steep Cost – The Zimbabwean

Rutendo Garwe looks at her phone as she calculates how much money she has in her mobile-money account. Garwe is one of many Zimbabweans who rely on mobile-money agents to turn their digital funds into cash. Gamuchirai Masiyiwa, GPJ Zimbabwe

Garwe has her funds in “mobile money,” a cellphone-based savings account that uses Zimbabwean dollars (ZWL) as a digital currency – a convenient way for Zimbabweans to make financial transactions without banks.

But while mobile money can be convenient in a cash-strapped society, turning it into physical funds is difficult: Garwe and other Zimbabweans must use agents who charge commissions as high as 40% for each transaction.

To take the bus, which doesn’t accept mobile money, Garwe must pay an agent a 30% commission to buy – or “cash out” – her coins.

Zimbabwe has experienced cash shortages since 2016, when hard currency became increasingly difficult to find. Mobile-money platforms and their agents provide a service by converting digital money into cash, which is sought after because Zimbabweans can purchase some goods and services more cheaply or only with hard currency. Even banks cannot disburse cash, as they have also been affected by shortages.

Officially, agents can only charge an approved commission, which can start as low as 1.6% and should rise to no more than 15%, depending on the transaction amount. In reality, they charge customers as much as 40% to buy cash.

Garwe must withdraw 100 ZWL ($5.99) a week for transportation, but only about two-thirds goes to the bus fare; the mobile-money agent gets the rest.

She relies on mobile-money agents throughout her day. Garwe, a mother of four, buys groceries on the black market because goods cost less than at formal grocery stores. She must make those purchases in cash, forcing her to use agents who charge a hefty commission.

“I have no choice,” Garwe says. “I lose almost half of my salary by buying cash from mobile-money agents.”

Cellphone companies introduced mobile money to Zimbabwe in 2011 to provide financial services to people without access to banks, especially in rural areas. Zimbabwe has 12.7 million active mobile subscriptions, according to a 2018 report compiled by the Postal and Telecommunications Regulatory Authority of Zimbabwe.

Mobile-money agents facilitate transactions in the financial sector without the need for a bank account and allow people to make payments over long distances. Agents face few barriers to the industry, but they are not paid a salary – only compensated through commissions.

Their high rates have not gone unnoticed by authorities. The Reserve Bank of Zimbabwe announced a ban in September on all cash transactions that use mobile platforms, an attempt to curb the buying and selling of hard currency at a rate beyond approved charges.

It lasted two days. A court overruled the directive following a lawsuit from Cassava Smartech Zimbabwe Limited, owner of a major mobile-money platform in Zimbabwe known as EcoCash. The platform boasts 10.5 million accounts and 51,000 mobile-money agents across the country.

Econet Wireless Zimbabwe, the parent company of Cassava Smartech, declined to comment.

Before the Reserve Bank’s attempted ban on cash transactions, the company said it did not permit unauthorized commissions and had suspended over 4,000 agents who were charging premiums beyond the approved rates. It also urged the public to report any agent who overcharged.

EcoCash agents blame the cash shortage and staggering inflation. They argue the company no longer supplies them with hard currency. The commissions are necessary, they say, to cover the high cost of acquiring cash.

“We used to get cash from EcoCash as a float, and we could also go to the bank,” says EcoCash agent Itai Khumalo. “But now they no longer give it to us, and we have to find the cash on our own.”

Agents once relied on commissions from EcoCash, he said, but that has dropped to about 1,800 ZWL ($107) a month due to the country’s unstable currency. He makes 500 ZWL ($30) per day through cash transactions.

Some consider mobile money more the problem than the solution. Eminasi Mutenge, who operates a grocery shop downtown, feared the initial cash transaction ban would affect her business.

“I only do cash sales, because that’s the only way I can manage to buy foreign currency at a lower rate and restock my shop,” Mutenge says. “I tend to bargain more if I have cash than when I have mobile money.”

Mobile-money has bolstered financial inclusion by helping people in the informal economy – where most activity takes place – make transactions. But the mobile-money ban and its reversal have created instability and confused the public, says Prosper Chitambara, an economist with the Labour and Economic Development Research Institute of Zimbabwe. This, along with inflation, has encouraged people to spend more and save less.

“The issue is a structural problem, which needs structural change in the economy,” Chitambara says. “People are still paying high premiums to get access to cash because the real issue has not been solved.”

This leaves customers caught between the convenience of quick cash and the frustration of bleeding money. Mobile-money users like Garwe are starting to demand accountability. The solution, as she sees it, is simple.

“EcoCash needs to monitor their agents and the government has to also do some monitoring,” Garwe says. “They need to make sure banks have enough money to ensure people can access cash.”

Zimbabwe Rural Schools Library Trust in Bibliotherapy Therapy project for Cyclone Idai Survivors – The Zimbabwean

The Zimbabwe Rural Schools Library Trust New Zealand will officially launch its Bibliotherapy Project targeting Zimbabwean child survivors of Cyclone Idai at its annual fun run/walk to be held in Hamilton on 7 March 2020. The Mayor of Hamilton Paula Southgate, Member of Parliament for Hamilton East David Bennett and Hamilton City Councillor Sarah Thomson have confirmed their participation. Apologies have been received from Councillor Maxine van Oosten and Anglican Action Chief Executive Officer Karen Morrison-Hume who are other commitments on the day.

Bibliotherapy is healing through reading books or listening to books being read. Evidence is abound that books provide the opportunity for escape and can be strong coping mechanisms in dealing with Post-traumatic stress disorders.

Cyclone Idai hit Southern Africa in March 2019 causing widespread destruction in Mozambique, Zimbabwe and Malawi. According to UNICEF, in Zimbabwe, more than 130,000 children are estimated to be affected. Support has been provided by many local and international organisations in the form of food, shelter, but many survivors still suffer post-traumatic stress disorders. The Zimbabwe Rural Schools Library believes books will help heal post-traumatic stress disorders in child survivors of school going age, hence the Bibliotherapy initiative.

The March 7 fun run is the sixth for the Zimbabwe Rural Schools Library Trust New Zealand. It was initiated by in 2015 by twin sisters Shefali and Shivani Sinha and has raised money which has been used to buy new books in Zimbabwe and ship books collected from New Zealand to Zimbabwe. Over 100 schools have benefited from the efforts of the Zimbabwe Rural Schools Library Trust.

A registration fee NZ$10.00 for adults and NZ$5 for children of school going age. Registration can be done through the Trust’s Bank Account number  03-1355-0850295-00, through the Trust’s EverydayHero account accessed on the link  https://donate.everydayhero.com/d/8L6Y_2xrWE2X43DBiTomwA/amount or in cash at the venue on 7 March 2020. Donations welcome.

Contact Tariro Kamutingondo on 00 64 22 674 0264 or Patience Ngara on 00 64 20 4020 7503 for further details.

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