Zimbabwe assets seizures possible to compensate Dutch farmers

By Alex Bell
28 April 2009

Zimbabwe’s government could soon find its assets seized and sold off, if it is unable to financially compensate farmers whose land was seized as part of Robert Mugabe’s land grab.

The decision was handed down in France last week by a Tribunal of the International Centre for the Settlement of Investment Disputes (ICSID), which ruled in favour of 13 Dutch farmers whose land was seized in Zimbabwe in 2003. The farms were meant to be protected against Mugabe’s land grab by a Bilateral Investment Treaty between Zimbabwe and the Netherlands. The government’s defence in the case filed by the farmers in 2003, was that a ‘state of necessity’ prevailed during the years following the onset of Mugabe’s land grab in 2000, thereby “relieving Zimbabwe of the responsibility of complying” with the Bilateral Treaty.

But a state of emergency was never declared in Zimbabwe during that time, and the Tribunal last week ordered the government to make compensation to the farmers, to the tune of 16 million euros. The judgement can also be enforced by the seizure of Zimbabwe’s assets, such as Air Zimbabwe planes, in any countries that are members of the World Bank, including the UK. One of the farmers, Ben Funnekotter, born of Dutch parents in Zimbabwe and who now lives in Australia, was one of the first forced off his land by Mugabe’s thugs in 2000. He told the UK’s Daily Telegraph that if the government does not meet the compensation bill “then I will start proceedings to impound any assets belonging to the Zimbabwe government.”

The assets seizures seem a more likely route of compensation for the farmers, as the government is still trying to attract foreign investment in the country to fill its empty coffers. At the same time, even if Zimbabwe’s government was financially sound, it is doubtful that the multi million compensation order would be honoured. Mugabe has continued to defend his land grab that has continued unabated this year, with the dictator openly condoning the attacks that already violate regional and international protection orders on farms.