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QUEST MEANS BUSINESS
Euphoria In Zimbabwe After Mugabe Resigns; U.S. Markets Close At Record Highs; Meg Whitman To Step Down As Hewlett Packard CEO; DOJ: AT&T- Time Warner Deal Would Harm Competition; Trump: AT&T-Time Warner Deal, "Not Good For The Country". Aired 4-5p ET
Aired November 21, 2017 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:37] RICHARD QUEST, QUEST MEANS BUSINESS ANCHOR: Closing bell rang on Wall Street just a few moments ago. Dow Jones Industrials closed
higher, though it gains on all of age (ph) of market. In fact, all the markets in New York are at records level.
Today is Tuesday. It's November the 21st.
Tonight, Robert Mugabe has fallen and Zimbabwe rejoices as the president resigned. A crippled economy gets a new start. I'll be joined by
Zimbabwe's former finance minister to discuss what it needs next.
And Donald Trump says AT&T big of a plans with CNN's parent company are not good for the country.
I'm Richard Quest live from Abu Dhabi. I mean business.
Good evening. There were jubilant scenes on the streets of Zimbabwe tonight after Robert Mugabe's 37-year rule ended with a brief resignation
that's a wild rejoicing.
They're chanting, rest in peace. Mugabe finally jumped before he was pushed, is coming under pressure of a military takeover and the humiliation
of impending impeachment.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: It's a new independence. We are so exited and we are very happy. We feel liberated. Thank you.
UNIDENTIFIED MALE: And what do you expect? Would you expect he would hold on to power? Does that surprise you?
UNIDENTIFIED MALE: No, we didn't expect that. But we expected the resigning.
UNIDENTIFIED MALE: What about you, sir? What do you think about tonight?
UNIDENTIFIED MALE: We think that this is the local blood (ph). Blood (ph) supported us. We were in crisis for a long time and this is the new
(INAUDIBLE) for Zimbabwe.
(END VIDEO CLIP)
QUEST: Emmerson Mnangagwa is expected to be sworn in as president on Thursday.
Farai Sevenzo is in Harare for us tonight. Every time I've seen you this evening Farai, you have been swamped by jubilant (INAUDIBLE). And I
suspect as the hour goes late, the mood is getting ever more, more exited.
FARAI SEVENZO, CNN CORRESPONDENT: It's a very abstract description of what's been happening to me. They are trying their hardest to let me speak
and do my job. But obviously, the exuberant and the happening is two thing.
At the moment, Richard, we are on Nelson Mandela Avenue, which is an incredible scene to be hold. In front of me is a very big night market in
Harare which is the Harare cathedral, Anglican cathedral. Just at short trip is the House of the Parliament, the parliament of Zimbabwe.
Behind me, you can see -- guys, come on. Get out of the way. Is a tag -- there's an arm of (INAUDIBLE) behind me, soldiers (INAUDIBLE). And they
are trying to contain the people and they take themselves and the noise continuing as you can hear.
QUEST: I don't know whether you can hear me. But I just need to ask you. You know, the vice president that's taking over, Mnangagwa, he was with
Robert Mugabe for many of these years of power. So, why should we have any confidence that suddenly did not foresee Angola Human Rights are about to
SEVENZO: That's a very fair point, Richard, and an excellent observation. We know this exuberant that happened isn't over. (INAUDIBLE) a harsh light
of day. People will realize that the man taking over, Emmerson Mnangagwa, the vice president, with the consent of the army and all of these
outpouring of love for many camouflage. He was indeed with Mr. Mungabe for over four decades.
And he was also in charge of deployed operations from (INAUDIBLE). That is the umbrella body that encompasses the challenges, the army, the police,
and the issue of that organization is (INAUDIBLE) with bodies. And I mean that literally.
[16:05:14] In 2008, over 200 Zimbabwe has died. Either they clammed down on everything, of all to that group and indeed (INAUDIBLE).
So, the question is, can he change? Will he become another Mugabe or would he give total freedom to these people (INAUDIBLE) just a little bit of it
in this last week.
QUEST: But let me argue against my own question. Surely, he sees what is around you at the moment, Farai, and he knows that this state can or could
follow him if he doesn't change, or am I just basically wishful thinking?
SEVENZO: No, you're absolutely right. What -- these last few days, from Saturday the 18th of November, I've gone to Zimbabwe, and that indeed the
politicians and the army, he's realized that the people needed an outlet for their frustrations, that they tasted freedom and they've liked it.
That is the most important thing. That they can go around and speak about the president without jailed out for insulting him. That they could share
different political opinions, that is the most change in Zimbabwe that we've seen in the last week. And of course, if he doesn't heed that, he
may well go the same way.
QUEST: All right. Look, Farai, we're going to -- as we leave you, set the crowed wild again. This is a night for celebration in Zimbabwe. So, go
on. Get them going again.
SEVENZO: Richard wants you guys to see -- he wants to see how happy you are.
There you go, Richard.
QUEST: That's what the story is about tonight. There'll be plenty of time for postmorteming (ph) how Robert Mugabe left power, who comes next. But
that noise, that crowd, that jubilation, that's what this story is about tonight.
Let us look at how Robert Mugabe rose to power as a freedom fighter, and then once in power, a reign of oppression and violence. And he imposed
poverty on his people. All the while, Mugabe and his wife enjoyed a lavish lifestyle.
But let's look at how he got to where he lost. It was in 1979 that he attended talks at the Lancaster House. And the Lancaster House that he
went in London, where it was agreed that then Rhodesia would become independent and would be known as Zimbabwe.
The following year, the country was the bread basket of Africa. Now, 20 years later, it is just a basket case. But Mr. Mugabe to then (ph) -- was
back then was elected prime minister.
Twenty years on and his government forces 4000 white farmers to give up their land, the effect of bad farming, bad practices, I mean, bad harvest,
and dry weather. It all led to the country's worst famine in 60 years, thousands are believed who have died.
In 2008, President Mugabe went a huge and controversial election. The economy shrank by 18 percent. Inflation soared. The Zimbabwean dollar
became so weak. The country abandoned its own currency in favor of dollarization the following year.
But height of the crisis, prices were doubling every 24 hours and inflations peaked at a staggering 7.9 billion percent. This was
hyperinflation on a scale never seen before.
The country's former finance minister was so exited after hearing Mr. Mugabe had quit. He said he felt like taking his clothes off with joy.
Tendai Biti is a member of the opposition. When he spoke to Robyn Turner earlier, it was not surprising the state of disbelief.
(BEGIN VIDEO CLIP)
TENDAI BITI, FORMER FINANCE MINISTER, ZIMBABWE (via telephone): All my life, the mission has been to get rid of Mugabe. He is gone. I can't
believe it. There's a horror now to me I have to recreate another monster to fight.
So, I'm numb. I don't know whether to take off my clothes and run like a madman. I don't know whether to find it, you know, (INAUDIBLE) to see my
dog. And I don't know whether to cry. It's just unbelievable. It's just unbelievable.
(END VIDEO CLIP)
QUEST: Tendai Biti joins me now from Harare. Thankfully, sir, I believe you are still fully clothed and whatever the excitement of today. But I
can well understand that there is huge excitement for you.
[16:09:59] Look, we'll talk about the future in a moment. I just want to get your gut feeling tonight, it's the Mugabe Era is over.
BITI: It's absolutely severe of every sense. Our DNA, our (INAUDIBLE) is to fight this man. We have never known him at yellow (ph) states. There
are no former presidents in Zimbabwe. There in America you've got at least four.
So, it's an unbelievable euphoric (INAUDIBLE). And we ought -- we wouldn't wake up from these nightmares. We are aware of the challenges that are
ahead, but today we celebrate. And we are not going deport (ph) tomorrow's challenges which we know exists and which we know (INAUDIBLE) us today.
Today, we praise (ph) and we praise (ph) again. The king is gone. The king is dead. Long live the king.
QUEST: The king is gone, the king is dead, long live the king. But one wonders that the prince that is behind him, the man who is going to be
crowned, if you like, will may -- or he's going to be installed into office.
Why have you got any confidence that the man who stood next to Robert Mugabe for 30 old years will be any better than the man he replaces?
BITI: The fact of the matter is that the Zimbabweans went on the streets, you know, hundreds or thousands on such a day, the 18th of November. They
want more. So there is absolutely -- there's absolutely no one with of any doubts in his mind or in your minds that Zimbabweans would remove the power
called Robert Mugabe to replace it with another power.
So, within that case we have seen -- these are case we have seen is not going to be a power. We'll tend to demand (INAUDIBLE). Besides it's very
clear that the challenges that are facing our country are humongous. There's 95 percent unemployment, 82 percent of the people are living in
poverty, surprisingly or less than U.S. (INAUDIBLE).
They are moving forward Zimbabwe's challenges, they need to be monetized (ph). And if those telling us that (INAUDIBLE) successfully, we have to
engage with the risks and the standards to be met.
Sadly, I absolutely doubt that the new authorities down understand that the importance of the engagement, understand that we have to form a new
collective team. And this is not -- this is not authority to take all democracy (ph), legacy, or mis legacy of Robert (INAUDIBLE).
QUEST: Do you stand ready to serve as finance minister? Last time, you were finance minister, it was a very successful term and you were wildly
respected. Would you take the job again? And if you do, what is the first thing you will have to do to stabilize a bankrupt economy?
BITI: Well, I think that's a -- I think what needs to be done is obvious. The first thing that needs to be done, that we have to maintain peace and
stability and ensure that there's no violence.
The second thing we have to deal with, the restoration of the social conflict, the restoration of (INAUDIBLE) that had been decimated between
the government and its citizens.
In fact, the (INAUDIBLE) on the economy, number one, we have to restore macroeconomic stability. I used to say when I was minister of finance, we
eat what we kill.
So, we have to move away from deficit financing, which was the order (ph) of the day into a regime of hostility, into a regime or for fiscal
balancing. Number two, we have to attend to factual (ph) reforms that includes reform of the white (ph) group that include the reform of sit (ph)
underprices, that includes the refuel of business (INAUDIBLE). That includes the resolving the (INAUDIBLE) issue of $12 billion. We have to
Where the (INAUDIBLE) it's not my decision. But I remember, the MDC alliance led by Morgan Tsvangirai and we're taking the decision that will
engage the new authorities in order to form an inclusive transition of (INAUDIBLE) authority.
QUEST: Are you willing to work with the international lenders like the IMS and the World Bank? And I know back in 2008 and seven, whatever in 1990s,
there was a very bad relationship with the IMS, which was blamed for much of the financial economic misery.
But are you now willing to work with these international organizations to rebuild Zimbabwe's economy?
BITI: I think one of the key agenda's or the (INAUDIBLE) is to restore international relations both islands or (INAUDIBLE) with different
government is also with the IFIs (ph).
[16:15:05] It's so important to have a relationship with the World Bank. It's so important to have a relationship with the IMS in Pennsylvania,
Washington D.C. It's so important to have a relationship with the African Development Bank.
So that means that the new government must craft a proper tips (ph) and strategy. We (INAUDIBLE) must be pushed on. Honesty must be based on
second commitment that Zimbabwe has to make. And the international community must grant a launching (INAUDIBLE) to Zimbabwe because cannot
afford Zimbabwe to continue being the albatross around the neck of the Southern African region.
So Zimbabwe has to have special treatment like in Iraq, like in --
QUEST: All right.
BITI: Like South Sudan because without it, that Zimbab will continue to shake (ph) the region. Look at the growth across South Africa. South
Africa is -- an average (INAUDIBLE) rate of 1.2 percent in the last five years. It's now it's a huge (INAUDIBLE). And part of the problem is
because Zimbabwe is not a functional state.
So Zimbabwe must --
QUEST: All right.
BITI: -- so that we don't put a pre-emp on the countries in the region.
QUEST: Good to see you. We'll talk more about it as the jubilation turns to the hard work. Grateful that you took time tonight to talk to us in
what must be a very exciting night for you. Thank you, sir.
The Wall Street now, which raise to another record close, Tech stocks and some strong corporate earnings led the charge. We will look at the numbers
and we'll interpret what they mean in what's going to be a short trading week.
Its QUEST MEAN BUSINESS. We're in Abu Dhabi.
QUEST: QUEST MEANS BUSINESS. To the markets and Wall Street closed at record highs. It was our tech rally and some strong corporate earnings.
The Dow, the NASDAQ, and the S&P 500 all closed at fresh highs. The Dow gained, right,160 odd points. And there you see the trading post in New
York where we'll be back next week. And 61, 61 records for the Dow as you can see on the various boards.
And Paul La Monica is following the numbers in New York and joins me now. Paul, we'll deal quickly with the market as to why, quite this week, I mean
a short week with Thanksgiving and a strong reversal of recent central. What was going on?
PAUL R. LA MONICA, CNN MONEY CORRESPONDENT: Yes, I think investors are once again growing optimistic about the possibility of some tax reform even
if it does get pushed until 2018, and supposed to happening before the end of the year.
But earnings by en large have still been really strong and investors realize that those tech giants that have tons of cash, Apple, Google owner
Alphabet, Amazon, Microsoft, and Facebook, they have a very strong prospects heading into 2018. Nothing is changing for them despite all of
the craziness in Washington.
[16:20:12] QUEST: Paul, this is just (INAUDIBLE). You've probably seen it. Meg Whitman is to step down as CEO of HPE, Hewlett Packard
Enterprises, being replaced by inside Antonio Neri, current president of HPE. Stock is down some 7 to 8 percent in the market.
Now, Meg Whitman split the company and sold off the two bit. She stayed with the other bit (ph). (INAUDIBLE).
LA MONICA: We haven't seen any specific reason for her leaving other than the fact that I think it was probably just time for her to step back. She
already had left the board of the other HPE directors. That's the company that makes the PCs and printers.
And what Whitman's legacy really is, is splitting that company into two, having HP Enterprise become a bigger player in software and services.
What's interesting Richard is that she ran for governor of California a few years ago and lost to Jerry Brown. If she hadn't lost, she wouldn't be CEO
of HPE right now.
And there's been speculation about what she might want to do next. There were rumors that she was being considered for the CEO spot of Uber before
that ultimately went to the former Expedia CEO.
QUEST: She's just -- to wrap that up, putting on today, so you're saying that, well, CEO since 2011, which for seven odd years, which the average
CEO 10 year is what, three years, 2.5 to 3 years. So she's done a two test (INAUDIBLE)?
LA MONICA: Yes, definitely.
QUEST: Paul La Monica in New York. Thank you.
LA MONICA: Thank you.
QUEST: Now, moments ago, outside the White House, Donald Trump spoke about the AT&T takeover of Time Warner, parent company of this network.
For the first time since the Department of Justice moved to block the deal, Time Warner owns CNN. Mr. Trump said the deal is not good for the country.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I'm not going to get involved to the litigation. But personally, I've always felt that that was
the deal that's not good for the country. I think the price is going to go up. I don't think it's a good deal for the country. But I'm not going to
get involved to this litigation.
(END VIDEO CLIP)
QUEST: Now, learning more about the Department of Justice' reasons for blocking the deal. According to the lawsuit, it says the $85 billion deal
would result in higher prices for consumers. The combined company could raise prices on competitors for Time Warner's popular T.V. networks. And
it says, the deal would able AT&T to impede disruptive competition, in other words, it's time for new competition.
It's rare for vertical mergers like this to be blocked. And the AT&T Chief Exec Randall Stephenson vowed that the fight would continue in court.
(BEGIN VIDEO CLIP)
RANDALL STEPHENSON, CEO, AT&T: I would suggest you that this lawsuit has the whole world questioning what they will, can and cannot do. This throws
a huge degree of uncertainty to anybody contemplating joint ventures, anybody contemplating M&A. And that's one of the key concerns about this,
to take suddenly without any notice and just upturn 50 years of precedent on a transaction like this can have nothing but a freezing effect on
commerce in general.
(END VIDEO CLIP)
QUEST: Kevin Arquit is in Washington, an antitrust lawyer who helped head AT&T's merge with DirectTV back through the Justice Department in 2014.
So, I read the lawsuit or at least the document provided by the Justice Department. It does make a persuasive argument that a combined AT&T and
Time Warner would have the power to restrict access or increase prices to competitors who wanted our content.
KEVIN ARQUIT, CO-HEAD, ANTITRUST PRACTICE OF WEIL, GOTSHAL & MANGES: Well, why I read the complaint is that those allegations are in there. But what
is the theory without supporting facts? Theoretically, many things can happen. And the incident, I think it's pretty shows what's going on here,
that the government doesn't have any contemporaneous documents to show this is what AT&T plans to do.
Time Warner creates TV programs. And when AT&T owns it, they need to sell that program to as many eyeballs as possible. They don't have any
incentive to discriminate against the distributors. That is the other pay TV -- cable TV folks.
And indeed, what's very odd about this complaint is in the first part, they say exactly what you're saying which is that this can -- this may allow for
them to discriminate against their competitors and pay TV.
And then the second part of the complaint says just the opposite. It suggests that as a result of this merger, they may actually be able to
tacitly collude with the other big cable companies to disadvantaged internet video distribution.
[16:25:08] So, it's really hard to find a coherent story that comes out of this complaint. But I don't see an economic basis for any of it.
QUEST: All right. Now, if that is the case, then we are left with the question of politics here. And how damaging is it to the government's own
case, that the president weighs in with such comments now that it is pretty much subdue to say with things like it's not good for the country, and join
the campaign saying, he wasn't going to allow it to happen.
Will that be taken into consideration in adjudicating?
ARQUIT: Well, I think that a judge, and this judge is a very intelligent, experienced judge that actually had some involvement in this area with the
earlier NBC Comcast deal a few years ago. And I think this judge will look at it on the merits, which is to say, is competition harmed?
And there's where I say, there's not a job loss, there's not a factory closing down, there's no assets leaving the country, there's dynamic
innovation. What's the problem that needs to be solved? This is a solution in search for a problem.
QUEST: Right. But if you're right, then you are -- then what is left? As Randall Stephenson said yesterday, what is left with -- I'm paraphrasing
into my language, that there is something smelly going on here, that so late in the day when we are expecting to cover the closing of the
transaction, the Justice Department comes in with the lawsuit against the deal.
ARQUIT: Well, I'm not a political analyst, so I have to let others connect those dots. But this is a very, very unusual case. You just don't see
this in 30 years, this type of case. And it's based on economic theories that were thrown out and discredited back then.
So, I don't have an explanation for why they brought the case. But, you know, there's always things behind the scenes that one doesn't know. But
it's just in straightforward economics, it does -- doesn't make sense to stop vertical integration like this, which we always assume lowers cost by
eliminating the middleman and lowers prices to consumers.
QUEST: Kevin, really glad you came in today at peace. Thank you for helping us understand that. We shall be calling upon you again.
ARQUIT: Thank you.
QUEST: As this works its way through the system. Thank you, sir.
QUEST: It's QUEST MEANS BUSINESS tonight. We're live in Abu Dhabi.
When we return, Robert Mugabe's downfall opens new opportunities to get the economy back on track. The question, is recess (ph) that potential and
then work out the mechanisms for restructuring Zimbabwe to its potential (INAUDIBLE)?
[16:29:57] QUEST: Hello. I'm Richard Quest in Abu Dhabi. We've got a lot more QUEST MEANS BUSINESS tonight to bring you and we'll tell you about how
one of America's most preferred (ph) journalists has been fired by both networks that employed him over claims of sexual misconduct.
And the head of a controversial power company tells us why putting out the Puerto Rico at CNN Exclusive Interview.
As we continue tonight, this is CNN. And on this network, the facts always come first.
You see in the pictures celebrations in Zimbabwe after long-time President Robert Mugabe finally resigned.
Drilling ZANU-PF Party announced that his successor will be sworn in by Thursday. He's the former Vice President Emmerson Mnangagwa and he's been
in hiding, not clear whether he's already back in the country.
Attack on a mosque in Northeastern Nigeria has killed at least 50 people. Police say a suicide bomber structured in morning prayers being no claim of
responsibility, but Boko Haram has carried out hundreds of such attacks in Northern Nigeria.
President Trump spoke by phone to the Russian president. And a White House official is saying the two discussed a range of issues, including Syria and
North Korea. The call lasted over an hour and claimed (ph) after President Putin sat down for talks the Syria's president.
Three vessels are moving to an extended search area looking for Argentina's missing submarine. The Navy lost contact with the sub on November the 15th
in the South Atlantic. Forty-four crew members are onboard. An official says the submarine could run out of oxygen as early as Wednesday.
British Prime Minister Theresa May says Zimbabwe deserves a brighter future of the resignation of Robert Mugabe. Theresa May says Mugabe's departure
is, in her words, an opportunity to forge a new path. And U.K. will do all it can to support Zimbabweans. U.S. Embassy in Harare is congratulating
Zimbabwe and urges respect for the rule of law.
Well, the South African President Jacob Zuma is due to visit Harare on Wednesday and that scheduled visit is now unclear if that trip will go
ahead. Whichever way you look at it, this is Zimbabwe's moment, the people have raged in a long for this. So join us as we take a look back at the
remarkable scenes today in the Capital of Harare.
ELIJAH MUDENDA, SPEAKER OF THE NATIONAL ASSEMBLY: "I, Robert Gabriel Mugabe, in terms of Section 96 of Section 1 of the Constitution of Zimbabwe
hereby formally tender my resignation as the President of the Republic of Zimbabwe with immediate effect."
UNIDENTIFIED MALE (voice-over): There's a real sense of euphoria here on the streets. Once the word got out, everyone screamed onto the streets,
celebrating. First, it was slow a couple of people cheering and then thousands are thrilling onto the park here near the Houses of Parliament
celebrating the end of an era.
UNIDENTIFIED FEMALE (voice-over): The only leader this country has really ever known since independence resigned after an attempted quo last week.
There were questions on why it was taking so long and then suddenly the old man, as he spoke (ph), resigned.
UNIDENTIFIED MALE (on camera): We have old ladies celebrating saying, "He's gone." Professionals as well. And I'll take you right onto the
center of the street, in the middle of town here in Harare. And the scenes here are incredible. Zimbabwean flags in the air. People are struck (ph)
here celebrating jumping up and down. I can oversee what this means to ordinary Zimbabweans.
UNIDENTIFIED MALE: It feels like my children can come here in the streets and their cameras out of their backpacks and zoom whatever they want
without being arrested or forced or anything, that anyone can make a talk about the president and regarding arrested for insulting the president,
that the identical freedom, you know, is really barking (ph) in place in this country of such a long, long ages. And then in hibernation, freedom
is back in Harare.
UNIDENTIFIED MALE: What do you feel about tonight?
UNIDENTIFIED MALE: The new independence. We are so excited and we are very happy. We feel liberated.
[16:34:53] UNIDENTIFIED MALE: It's like the entire country took the deep breath for the news and as rush out there celebrating. Tomorrow's another
day. But today, this is how the people feel.
QUEST: Storm rage. Well, Robert Mugabe's faults of us western companies are root back into the country's economy. And Mugabe, once threatened to
cease western-owned investments in response to sanctions, we should expect that cause series of contraction in the economy.
In June, Barclays sold off its banking operations after 90 years. That's a big name in Africa. Lufthansa, like many other carriers, had pulled out as
hyperinflation rendered the currency worthless. The report is now interesting in resuming flights. And 10 years ago, Heinz sold off its
stake to a locally owned firm. The company blamed the currency uncertainty worsening economic conditions.
And here's just to bring you quickly that Saad Hariri, and you'll be familiar with of course the -- I was going to say the escapade, but it
going on with Saad Hariri, who left Lebanon, turned up in Saudi Arabia, was there for the rest part of the few weeks, resigned while in Saudi Arabia,
claimed that he wasn't being held hostage of capture, then went to France where he had lunch with Emmanuel Macron. He has now returned as he said he
would to be in the country for National Day on Wednesday. But the issue of course of Hariri, since he resigned on the November the 4th, the issue is
whether he now resends that resignation or does he go through with it.
And Michel Aoun, the Lebanese Prime Minister -- sorry, President, I beg your pardon, had made it clear that she would not accept Hariri's
resignation while it was delivered from South Africa insisting it could only be made in the country itself.
So tonight, Saad Hariri is back in Lebanon with no certainty over what that means for his future as Prime Minister or indeed the question of relations
with Saudi Arabia, which is of course potentially launching a proxy war through him. We'll talk more about that in the hours ahead.
Eleni Giokos joins me from Johannesburg. And Eleni, you remember where we were. We went on South Africa. We were talking about Zimbabwe and the
companies that are likely to return. Look, how bad has the situation got there?
ELENI GIOKOS, CNN CORRESPODENT: It's pretty bad because capital controls have throttled the economy. I mean you can draw more than $20 to $50 from
an ATM at a time. Companies can withdraw many. They can make payments very easily. The Central Bank is constantly watching them.
So it has been very tough over the past couple of years. Remember, Zimbabwe adopted the U.S. dollar as its currency in 2009. Because of
hyperinflation, millions of the fence, Richard, where you saw prices changing every single hours, it resulted in $100 trillion Zimbabwean note.
Now, the Zimbabwean government launched the bond notes and recently backed by this -- by the U.S. dollar. But this is just showing what cash firstly
(ph) is on the ground. It's very difficult to operate there right now. And this is why we're seeing things kind of coming to ahead and escalating
to what we've seen now with the military decided to intervene, Robert Mugabe has finally resigned. And this hopes perhaps that things are going
to change in the economy of France but it's going to take a lot of hard work.
QUEST: Where will it start? That's the key question. Where do they start to rebuild the economy?
GIOKOS: Yes. Well, I mean that's the thing. Do they -- I mean policy is going to be very important. It's going to send the right message to
international investors, common investors in the country, open up shop again (ph). Maybe time sorts out the currency crimes, you know, borrowing
money is one option. The IMF has bought that as an option. But these are -- they've been such bad payers that are relayed on bonds -- bond payments
so often through the years.
Bringing in another currency that perhaps (inaudible) on the ground, it's - - you know, there are so many different elements. But I think in better perception in getting credibility back into the economy is going to be one
starting point and ensuring that investors know what they're in for every time they come.
Last year, when I went to Zimbabwe, mining licenses were taken away from companies that had been operating there. And literally here woke up and
see that we have no mining rights anymore in the property and the goods will cease (ph).
GIOKOS: So hopefully, that kind of instability is going to be taken away by the new government or the intern government that will hopefully be put
in place very soon.
[16:40:02] QUEST: And the significance, Eleni, of putting in place anti- corruption measures in what is widely regarded, if you look at the transparency international and if you look at the barriers, indices, it's
one of the most corrupt economists on Earth.
GIOKOS: Well, how they're going to go about this, again, to me, regional intervention, perhaps international intervention as well. But maybe just
put it to you, you know, frankly, if you've got the ZANU-PF Party that is going to be leading the country going forward and the people, the veterans
and, you know, the people that was surrounding Mugabe, still very much in power, including Emmerson Mnangagwa, of course, the vice president that was
said that is to be the interim president for the next while, these people were involved in the Mugabe regime, they were involved in corrupt
activities, money being going missing, mismanagement of funds.
We should know corruption is not going to be easy. And I don't know if it's going to be about the leadership change or if it's going to be about
being a lot more transparent. But they're going to sort -- have to sort out the arriving news and they're going to have to sit and say to
themselves, you know, the world is watching us right now. How do we make sure that we take this opportunity to turn the economy around and get rid
of corrupt activity?
QUEST: Eleni, thank you in Johannesburg. Well, it's late at night, Peter Godwin joins me. He's an author and the former Human Rights Lawyer in
Zimbabwe. He joins me now.
Following on from that question, I mean, you know, obviously, the celebrations are in the way there, but to move forward, I mean I'm reminded
in many ways of the countries of the former Soviet Union. When the Soviet Union collapsed, it was the same leaders running the same corrupt regimes
but just under a different flag and a different country name. So that's the risk here with Zimbabwe, isn't it?
PETER GODWIN, FORMER LAWYER, HUMAN RIGHTS IN ZIMBABWE: Yes. I thought you're going to ask me an economic question, in which case I was going to
paraphrase Alec Baldwin's and say, "I'm not an economist but I play one on TV."
Yes, it is essentially what you say that there's basically -- you've got the same cast here. And of course -- I mean pick one subject at random
that's just being raised, say corruption for example, well, you know, none other than Emmerson Mnangagwa himself is in the cross heirs for that (ph).
He's been deeply implicated in all manner of things. And in particular this huge windfall of money that Zimbabwe in the shape of the Marange
diamond fields, which brings an estimate of $15 billion, almost none of which made it to the fiscus. It all ended up in the pockets of ZANU-PF
GODWIN: So, you know, there are problems like that. We're going to get the -- you know, it's a (inaudible) problem right from the start.
QUEST: So if we look again, if we look again at say the European situation, Fall of the Berlin Wall, one way that many changes will take
(inaudible) place is by integrating the new countries, the newly independent countries into the European Union and that wall will become
whole host of safeguards, ballistic and financial support, and the like. But there's now equivalent in Africa really, is the African Union can't
play that same role. There's Nuwiq (ph) maybe on South Africa arguably. Nigeria is in transition, 10 years got its own serious (inaudible) regional
major players are going to have their own shackle in dealing with South Africa. I mean with Zimbabwe.
GODWIN: With Zimbabwe. Yes. I mean there are various instruments in play that do things like for example guarantee property rights for foreigners.
So for example, during the land invasions when Mugabe moves to take commercial firms away from white farm owners, the irony was that he could
take those farms away from all Zimbabwean white farm owners. But he couldn't take them away from the few white farm owners who had Deutsche
passports, or German passports, or English passports, people who say because they were covered under investment guarantees.
So they are some instruments in play. But I think anybody thinking of investing in Zimbabwe is going to really have to wait to see what kind of
government emerges. And that will take really some time.
QUEST: Good to see you, Sir Peter. Thank you very much indeed for joining us.
GODWIN: You're welcome.
[16:44:44] QUEST: As we continue tonight, a long career (inaudible), U.S. T.V. host Charlie Rose is fired. Of that, a woman accused him of sexual
QUEST: (inaudible), U.S. T.V. host Charlie Rose is being fired by both CBS and PBS, Public Broadcasting System, a day after sexual harassment
At least eight women tell the Washington Post that he made unwanted sexual advances towards them.
Charlie Rose said an statement that he deeply apologized to the inappropriate behavior. All night television (inaudible) CBS' co-anchor on
the morning show gave an emotional response.
(BEGIN VIDEO CLIP)
NORAH O'DONNELL, CO-ANCHOR, "CBS THIS MORNING": This I know is true, women cannot achieve a quality in the work place or in society until there is a
reckoning and a taking of responsibility.
GAYLE KING, CO-ANCHOR, "CBS THIS MORNING": I'm really struggling because how do you -- what do you say when someone that you deeply care about has
done something that is so horrible.
(END VIDEO CLIP)
QUEST: Hadas Gold joins me from Washington. All right. So Charlie Rose, this is a fascinating one in a sense, because it's not only a case of a
small company, Charlie Productions, his own production company where the people would have had no recourse to a big HR division, but it seems
everybody in the industry. And I knew he was potentially up to no good in some shape of form.
HADAS GOLD, CNN REPORTER: I don't know if everybody in the industry believe that he was up to no good, but there had been some reports about
some of his behavior in the past, but not in the extent that we found this Washington Post article that involves people who are either working for him
or who wanted to work for him, especially younger women and just the actions of the alleged, including, you know, walking around nude or just
inappropriate conduct around them. And you're right that this is a really mixed situation and that Charlie Rose has his own production company which
produces the "Charlie Rose Show", the famous show with the black background and the big oak table in the middle. And then it's broadcast on Bloomberg
and it's broadcast on PBS, and then also he's employed by CBS.
CBS says that they have fired him, although they say that they didn't have any reports to their H.R. department about Charlie Rose but that they
decided to take action just because his actions were inappropriate and they didn't want to condone the sort of actions by keeping him employed.
QUEST: Right. When I read the original article this morning in the Washington Post and it was -- I mean this isn't one of those cases at the
lower-end of misbehavior as I read it this morning. This was egregious behavior of a grossness (ph), wasn't it?
GOLD: Yes. And also what was I think most interesting out of this article that some of the behavior was actually reported to senior people who worked
with Charlie Rose and it's clear that that did not go very far. We don't know exactly why it didn't. We didn't know -- we don't know exactly why
action wasn't necessarily taken.
[16:50:03] In that story, there's even one report of a woman who claims that she was let go from her job after expressing some concerns about that
behavior. And I think that's where we're going to see more stories come out regarding Charlie Rose. It's who knew what and why wasn't more action
taken? And this falls into the same sort of pattern we've seen with other stories about powerful men in positions in media and in Hollywood where
these things have been going on for several years. Sometimes they have been brought up to superiors and nothing was done. But now, we're in a new
environment where companies are taking notice and starting to shake really drastic action when these things come forward.
QUEST: Hadas, thank you. Hadas Gold with us on Washington.
GOLD: Thank you.
QUEST: Senior Executive of Whitefish Energy says his company is leaving Puerto Rico and says it hasn't been paid. Our Exclusive Interview is next.
This is Quest Means Business in Abu Dhabi. Stay tuned.
QUEST: Two months that that Hurricane Maria ravaged Puerto Rico (inaudible) back to generating around of the electricity it gives before
the storm. The company that was hired to fix the grid was called Whitefish Energy. And so it hasn't been paid and so it stopped in work. Chief
Executive spoke exclusively to Leyla Santiago.
ANDY TECHMANSKI, CEO, WHITEFISH: We stopped because of the financial situation and lack of payment with PREPA. It has gotten beyond its maximum
threshold of what we can sustain as a business.
LEYLA SANTIAGO, CNN CORRESPODENT: How much do they owe you?
TECHMANSKI: $83 million. We came here because, how could you not? If you come here and you have a skill set, they can immediately help the people of
Puerto Rico like we do. It is more of a moral application from that point forward.
So although it may not have been the best business decision coming to work for a bankrupt island, I don't regret doing what we've done and seeing
people in great gratitude for the positive work that we've done. We've made a huge impact.
SANTIAGO: Would you do this again?
TECHMANSKI: I would. I do a lot of things different.
QUEST: Leyla is with me. Leyla, the reality is, this was a small company with no employees that had to scale up. And most people said Whitefish was
-- it was beyond their capabilities.
SANTIAGO: Right. There was a lot of criticism from the beginning in this relationship between, PREPA, the Puerto Rican Power Authority and
Whitefish, that small Montana Company that was given the big task of restoring the power here on the island after Maria and now this. Now, a
development in the relationship, in which they're saying, "Hey, we can't do this anymore. We need to be paid. So we're going to stop all activity on
our end." Despite the fact that they have not reached the end of their contract, which is that the end of this month --
[16:55:03] QUEST: Right.
SANTIAGO: -- they were supposed to stop work on November 30th after the government canceled their contract. And now, they're saying we're out
early because we can't continue on financially.
QUEST: Leyla, I'm -- good start, Leyla. Just bring me up-to-date on how the GoFundMe is progressing.
SANTIAGO: I will gladly. You know, I have an effort on GoFundMe. I wrote letter to my hometown. It's called Dear Corozal. The site now has more
than $19,000 to help people. We run from in a little town called Corozal. And so we are almost halfway to our goal of $50,000. I'm asking everyone
to help out and go to GoFundMe/DearCorozal, C-O-R-O-Z-A-L, to make sure that we can help the people on this island that still don't have power and
QUEST: All right. Before you ask, I haven't given my donation yet. I know you're about to give me grief for that.
SANTIAGO: I know.
QUEST: I promise you before I go to bed --
SANTIAGO: I know.
QUEST: -- I will be giving it. Thank you, Leyla. Good to see you.
Another profitable moment after the break.
QUEST: In just 45 seconds, it will be a new day in Harare and in Zimbabwe. Tonight's profitable moment needs really to stand I think more other than
the enormous change that's taken place 37 years after Robert Mugabe took power in a country that has been bankrupted, people that have been
suffering ever since.
Now tonight, we can look forward to a difficult but at least a new and promising future. And that's Quest Means Business for tonight. I'm
Richard Quest in Abu Dhabi. Whatever you're up to in the hours ahead, I hope it's profitable. I'll see you tomorrow.