Zimbabwe talks deadlocked, mediation needed: MDC

HARARE (Reuters) - Talks on the formation of a power-sharing government in Zimbabwe failed on Tuesday to end a long stalemate over cabinet posts, the opposition Movement for Democratic Change said.

The MDC and President Robert Mugabe's ZANU-PF have been negotiating since September 15, when an outline deal was reached to end a political crisis that worsened after Mugabe's re-election unopposed in an election in June boycotted by the MDC.

Tendai Biti, Secretary General of Morgan Tsvangirai's main MDC faction, said no progress had been made in talks on Tuesday.

"There's no progress, there's a clear deadlock. We met again today but couldn't move the process forward," Biti told Reuters.

The MDC said earlier that talks were deadlocked on sharing out all key ministries. It called for urgent African mediation over the crisis, which has accelerated Zimbabwe's economic collapse.

ZANU-PF said at the weekend that the dispute centered only on the finance and home affairs ministries but an MDC statement on Tuesday rejected this.

The MDC called for help from the Southern African Development Community (SADC) and the African Union. The original deal was brokered by Thabo Mbeki, who remains as SADC mediator despite being ousted as South African president.

"The facilitator has to come back," Biti said.

Asked if the MDC had made contact with him, Biti said Mbeki "is aware of what is happening."

ZANU-PF officials were not immediately available for comment.

A senior ZANU-PF official said on Monday that Mugabe was expected to meet Tsvangirai in the next two days in another attempt to break the deadlock.

NO CONTACT

"Considering the fact that it is now exactly 21 days after the signing of the global agreement, the cabinet deadlock calls for the urgent help and assistance from SADC and AU as guarantors of the deal, to unfreeze the impasse," the MDC said.

Under the outline agreement, Mugabe would retain the presidency and chair the cabinet, while Tsvangirai would head a council of ministers supervising the cabinet.

Without a breakthrough, Zimbabwe's economy could worsen still further. The once-prosperous nation is crumbling under inflation of about 11 million percent -- the highest in the world -- and chronic food shortages.

Zimbabweans have to queue for hours, sometimes overnight, to withdraw money from banks where withdrawal limits have been imposed by the central bank.

"MDC is concerned with the prolonged and protracted dialogue considering that the people are dying of hunger, factories closed, school calendars disrupted, workers not going to work and disease outbreak," said the MDC.

"The country is at a standstill and the people's patience is running out, hence the resolution of the impasse is more urgent than ever before."

(Editing by Barry Moody and Matthew Tostevin)