Biti says US$50 billion loan ‘unclean’
By Guthrie Munyuki
Wednesday, 08 September 2010 09:19
HARARE – Finance minister Tendai Biti says one of the officials representing
a South African firm offering Zimbabwe a failed US$50 billion loan was an
arms dealer and could have “Russian Mafia” links.
Biti said Norange Capital Markets’ outlandish offer was very suspicious and
reeked of a strange ‘financial smell’.
“That company, Norange Capital Markets is dodgy. They are not HongKong
Shanghai Banking Corporation (HSBC), they are not Stanley Morgan and they
are not Barclays Bank International. So who are they?
“One of those guys is actually an arms dealer and might have links with the
Russian Mafia. I only met them once but I had my suspicions,” Biti told
Daily News in an exclusive interview.
However, ex-service man and businessman Kudzai Mbudzi whose consultancy firm
Business Support Services brought Norange, said the Malaysian central
bank-sheltered fund was clean.
He also accused the treasury boss of “heel dragging” since March and taking
a unilateral decision in blocking the offer without proper, and exhaustive
Cabinet deliberation on the matter.
“Norange had told Biti that they would first communicate with the
International Monetary Fund, World Bank and Interpol before releasing the
money. How then can you suspect such people of moving dirty money?
“What Biti did was just to deny Zimbabweans relief. I am not sure if he is
working with his friends in the MDC or it is just his own work but whatever
it is, he has denied Zimbabwe an opportunity to receive the much-need
loan,” said Mbudzi, at one time a leading figure in the Simba Makoni led
Mavambo/Kusile/Dawn opposition party.
Biti, on the other hand, threw cold water on Mbudzi’s claims, saying the
Norange offer was swiftly rejected by the cash-strapped government after a
security check indicated that the South African company’s offer might have
been a ploy to clean its money.
“Where in the world have you heard such sums of money being bandied around?
How can someone offer you a free US$100 million, just like that? Why didn’t
they go somewhere, to better economies than ours? Surely we are poor and
ranked number 2 out of 133 and why would someone want to sink their money
here?” Biti asked.
He said the Central Intelligence Organisation had done a thorough check on
Norange’s profile and hence the decision to dismiss the offer was based on
that security brief – considered by government as sound and unquestionable.
But Mbudzi maintains and spiritedly accuses Biti, and his Finance ministry
subordinates of failing Zimbabwe and lying that President Robert Mugabe had
backed the rejection of the loan.
“Mugabe did not turn down the loan. Biti lied about the company. My company
was involved in the facilitation of this loan and Norange are clean,” said
Mbudzi.
“He sat on the papers until round about May when we pressured him. This is
when Mrs Makuvaza who is in the Domestic and International Banking
department was tasked to deal with the issue.
“We did not end there. We approached the Attorney General who phoned the
chief secretary to the President and Cabinet – Dr Misheck Sibanda – who in
turn approached the permanent secretary in the Ministry of Finance, Willard
Manungo, who released a letter purporting that Norange Capital Markets loan
offer had been rejected on the grounds of suspicious money laundering,”
Mbudzi told Daily News.
Mbudzi further argued for Norange, citing the “professional” job done by one
of official of the Geneva-based United Nations Humanitarian office, whom he
refused to name.
Zimbabwe needs about US$10 billion to resuscitate its once vibrant economy
which currently bears scars of mismanagement, corruption and profligacy, all
blamed on Mugabe and Zanu PF senior officials.
Western donors who are withholding their money insist there must been
meaningful reforms before they can commit any financial support to Zimbabwe.