(TALKZIMBABWE) US$5billion loan was offered before inclusive Govt, says President Mugabe

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US$5billion loan was offered before inclusive Govt, says President Mugabe
Mutsawashe Makuvise
Mon, 06 Jul 2009 01:54:00 +0000

President Mugabe attends opening session of the African Union summit with Justice Minister Patrick Chinamasa (behind).

THE US$5 billion aid that was given to the Government of Zimbabwe by China was negotiated before the formation of the inclusive Government, says President Robert Mugabe.

Speaking on the sidelines of the 13th Session of the African Union summit in Libya, President Mugabe confirmed that the Chinese had availed that hefty package, despite Finance Minister Tendai Biti's refusal that the package had been negotiated.

President Mugabe added that the fund was not negotiated by the MDC-T party but by various pre-inclusive Government ministries, and will be paid in tranches.

"It’s a fund that was negotiated long ago, and all that nonsense that it’s the MDC and so on is just politicking, it’s a fund also that is targeted, it will come variously.

"There are amounts for the various sectors, for agriculture, for health, for mechanisation etcetera and so on, and they will cover energy as well and so we are happy. But you don’t get the political conditionalities from the West," President Mugabe said.

The Zimbabwe Guardian on Friday reported that the government of Zimbabwe had received a US$5 billion package from the Chinese government.

Finance Minister 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 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."

President Mugabe's statement proves that the story we published on Friday was indeed true and that the government had secured the hefty fund.

Prime Minister Tsvangirai on Wednesday announced that Zimbabwe had received a US$950 million credit line from the Chinese government.

President Mugabe confirmed that this credit line had indeed been negotiated, although minister Biti denied the news.

Government sources who spoke to this reporter on Sunday confirmed that the credit facility had been extended to the Government of Zimbabwe.

State media also corroborated that story. Monday issue of The Herald also quoted sources saying: the US$950 million is the first tranche of an expected US$5 billion bridging package that was negotiated four years ago by teams from the ministries of Foreign Affairs, Industry and International Trade, and Finance, and at one time involved the Presidency through Vice President Joice Mujuru.

President Mugabe said the Chinese fund did not have any conditionalities attached as did Western ones.

He said the fund was "given in circumstances quite different from what the West prescribed for the mini-funds that attended, you know, all that venture that the Prime Minister went on from the Netherlands to the United States, the United States back to Europe."

The Chinese package, the President said, was well meant as it was coming to Government not NGOs, to assist in national development and economic revival.

"That is the kind of help we would want to get, and not the Western dictates," he said.