Maravi

(TALKZIMBABWE) Minister 'lied' about Chinese deal

Minister 'lied' about Chinese deal
Mutsawashe Makuvise
Fri, 10 Jul 2009 11:05:00 +0000

FINANCE Minister Tendai Biti last week did not tell the country the truth when he said he did not know about a US$5billion loan deal that Zimbabwe signed with China, the Zimbabwe Guardian has learnt.

Last week we reported that Zimbabwe and China had signed a US$5billion loan deal through China Exim Bank (CEB).

We also reported that Finance Minister Biti and Reserve Bank officials on June 8 signed a Memorandum of Understanding (MoU) with CEB guaranteeing the loan. This story also appeared in The Independent newspaper.

President Mugabe also told reporters in Sirte, Libya on the sidelines of an AU summit that such a deal had indeed been signed, but the US$5 billion promised would come in tranches. He said the deal had been agreed before the formation of the inclusive Government.

Prime Minister Morgan Tsvangirai also corroborated this story.

"The government through the Minister of Finance secured credit lines of almost $950 million from China," Tsvangirai said in a news conference after his state visit to the EU and US.

Biti who was not privy to the original deal when he was still in opposition immediately refuted the story, which was also covered by the Independent newspaper.

Speaking to journalists last Friday, Biti said, "There is no foundation at all in the press reports that we have received a loan ... from China.”

Biti attacked the media for reporting on the deal. "That is a story without any foundation, without any credibility, without any legitimacy,” Biti said, “It is sad journalism."

Further details have now emerged proving that Biti knew about the deal and that he lied to the nation that he did not know about the deal.

The weekly Zimbabwe Independent newspaper is reporting that a meeting took place which was attended by Biti himself, his advisor Conrad Nyamurova, and an official in his ministry, Mary Takavarasha, Reserve Bank governor Dr Gideon Gono, his deputy Edward Mashiringwani and Dr Gono's advisor Munyaradzi Kereke.

Minutes of the meeting, which the Zimbabwe Independent saw and held at Biti's office on June 8 show that the minister highlighted he had recently signed an MoU with ECB.

The minutes of the meeting were headlined 'Zimbabwe-China US$5 billion loan', according to the weekly newspaper.

The paper further says that the minutes noted that "The minister (Biti) highlighted that recently he signed a cautioned MoU with Eximbank on condition of clear legal documentation and declaration of obligations of the Chinese.

"Information gleaned from documents to hand show that Biti recently signed a cautioned MoU with China's Eximbank to pave way for work to begin on the mining concession that was mortgaged and thus encumbered after the negotiation of a US$200 million credit facility with Eximbank. The initial deal was structured on a wrong valuation framework of US$10 per ounce."

"Despite Biti's feverish denials, government is engaged with the Chinese over the massive platinum deal and credit facilities, including the US$950 million deal that is currently on the table," says the Zimbabwe Independent.

"The US$950 million negotiated under China's buyers credit facility is almost a done deal although there are a few issues which need to be finalised."

Biti has developed a habit of denying what he would have said and blaming the media.

A few months ago Biti denied that he had an acrimonious relationship with governor Gono; although he was at the same time calling for his ouster. He once accussed him of "economic terrorism". Biti blamed the media for fabricating that story and creating a "matrix of negatives".

Biti was also caught up in another web of misrepresentations when he told Cabinet and Cabinet Committees that Dr Gono had “borrowed US$1 billion without authority”. This allegation proved embarrassing to the Minister when refuted with evidence.

Labels: CHINESE, CREDIT FACILITIES, TENDAI BITI

posted by MrK @ 3:58 PM