Movement for Democratic Change (1999–2005) was not retroactive, Mugabe could still have maintained the presidency for two more terms. The most controversial part of the constitution was the land reform policies. It stated that, as in the Lancaster House Agreement, Britain would fund land reform from white settlers to landless black peasants. If Britain failed to compensate the farmers, the government would take the farms, without compensation. The party split over whether to contest the 2005 senate election, into the Movement for Democratic Change – Tsvangirai (MDC-T), the larger party still led by Morgan Tsvangirai, and the Movement for Democratic Change – Ncube, a smaller
Robert Mugabe this result, lambasting white Zimbabweans for not repenting "in any way" by continuing to support Smith and other white politicians who had committed "horrors against the people of Zimbabwe". Under the new constitution, Zimbabwe's Presidency was a ceremonial role with no governmental power; the first President was Canaan Banana. Mugabe had previously offered the position to Nkomo, who had turned it down in favour of becoming Minister of Home Affairs. Although working together, there remained an aura of resentment and suspicion between Mugabe and Nkomo. Mugabe gave ZAPU four cabinet seats, but Nkomo demanded more. In contrast, some ZANU-PF figures