Maravi

(HERALD) Biti scuttled US$50bn loan deal — Mbudzi

COMMENT - I don't like the sound of this loan facility at all. If Zimbabwe can export upto $1bn a month in diamonds, that is what they should get most or all of, and use than money to invest in the economy. It is slower than borrowing money, but you keep ownership and control all the way, which means the country will develop in the way you want it to, and not be foreign owned. As hesitant as I am to ascribe national interest to the MDC or minister Biti, this was the right thing to do.

Biti scuttled US$50bn loan deal — Mbudzi
Herald Reporter

Finance Minister Tendai Biti blocked the US$50 billion loan deal between Government and Norange Capital Markets because of his own political agenda, a key figure in the abortive negotiations has alleged.

Retired Major Kudzai Mbudzi yesterday confirmed to The Herald that he facilitated the talks but denied that the money was dirty and Norange wanted to launder it through Zimbabwe.

Sources familiar with Government’s workings also indicated that it was possible that bureaucratic manoeuvering could have been behind the deal’s stillbirth because under the proposal, Norange would give Government a non-repayable US$100 million grant with the option of accessing concessionary loans of up to US$50 billion.

Yesterday, Rtd Major Mbudzi said: "What Zimbabwe probably needs to know is that Norange Capital Markets is a highly diversified international company now based in Hong Kong, China, and also registered in Botswana.

"Its directors and advisory board consist predominantly of South African citizens."

He said the Mel Hua family, whose money backed the loan and grant proposal, had funded many governments and were engaged in several international humanitarian programmes throughout the world.

"This is why their headquarters is located at the United Nations in Geneva, Switzerland."

He said the money was in Malaysia’s central bank and would be routed to Zimbabwe through the US Federal Reserve system.

"Why would Interpol, the IMF and the World Bank be involved if these monies were dirty? Why didn’t Biti accept the verification process in the first place?"

Rtd Major Mbudzi said it appeared MDC-T did not want the money to come into Zimbabwe because such a huge injection would turn around the economy and "rubbish their politics of hunger".

"Every Zimbabwean knows that it is an engrained fear within Minister Biti’s quarters that if such huge financial packages are brought into Zimbabwe today, it will obviously weaken their political comparative competitiveness against their main political adversaries, in light of the much talked about general elections next year. The busting of sanctions, therefore, can never be part of his favoured agendas. So principally and practically, this is simply a case of the hidden agenda."

Rtd Major Mbudzi said the US$50 billion proposal they had in mind would be broken down as follows:

l US$13 billion was to retire internal and external debt

l US$20 billion for on-lending to industry through the banking system

l US$4,5 billion for civil servants’ salaries, allowances and the capacitating of Government service

l US$5 billion was for agriculture and mechanisation.

l US$7,5 billion was for infrastructure rehabilitation and development

Rtd Major Mbudzi said Norange had nothing to hide and invited anyone to make necessary checks with Interpol or any other organisation.

Labels: NORANGE CAPITAL MARKETS, TENDAI BITI

posted by MrK @ 5:54 PM