Government has failed to explain an outrageous deal it entered with China in which it borrowed US$200 million from the Asian country while collateralising an asset which in gross terms is worth more than US$52 billion.
On Wednesday, Finance Minister Mthuli Ncube told Parliament that there is a US$200 million farm mechanisation equipment facility signed on 13th October, 2006, through China-Exim Bank. The loan was collateralised by 26 million ounces of platinum.
This prompted former Finance Minister Tendai Biti to do a quick breakdown of the transaction. He found it irregular that the government would back such a loan with 26 million ounces of platinum worth, according to him, 52 billion.
“My substantive question however pertains to the loan you referred to of 2006 which was for US$200 million. So, the Government of Zimbabwe borrowed US$200m from China to purchase farm mechanisation equipment but you said this loan was collateralised by 26 million ounces of platinum,” Biti said.
“If you do rough mathematics, assuming the price of platinum for an ounce is US$2000, you are talking of US$52 billion for the 26m ounces.”
The outspoken Harare East legislator then asked: “How is it possible that the Government can borrow US$200 million from China and give an asset which in gross terms is US$52 billion?”
In a shocking admission, the treasury did not deny Biti’s observation, presumably because the deal happened 17 years ago when Herbert Murerwa was the Finance Minister.
Ncube frankly admitted the deal needed to be evaluated to ensure that the lender, in this case the government, is treated fairly.
“This arrangement was struck way back in October 2006, I think before the buoyant prices that you see in the PGM sector were available for us to enjoy. So, I think in a sense, he is requesting that some of these arrangements should be looked into given the high prices that are currently out there.
“Certainly, for me as the Finance Minister is something I would want to look at closely and see how best this can be structured so that a good will loan from China is dealt with and serviced properly on the back of a properly valued asset.
“That is what I said at the end that this arrangement is subject to proper resource evaluation and the current prices that he mentioned matter.
“We will look into it to ensure that the lender is dealt with fairly for their good gesture while the debtor, who is ourselves, is adequately treated the right way in this regard,” Ncube said.
Govt borrowed US$200m from China using assets worth US$52 billion – Nehanda Radio – https://t.co/OZgyGgBQFd https://t.co/coVrl29K1X
RT @NehandaRadio: Govt borrowed US$200m from China using assets worth US$52 billion – Nehanda Radio – https://t.co/OZgyGgBQFd https://t.co/…
RT @NehandaRadio: Govt borrowed US$200m from China using assets worth US$52 billion – Nehanda Radio – https://t.co/OZgyGgBQFd https://t.co/…
RT @NehandaRadio: Govt borrowed US$200m from China using assets worth US$52 billion – Nehanda Radio – https://t.co/OZgyGgBQFd https://t.co/…
RT @NehandaRadio: Govt borrowed US$200m from China using assets worth US$52 billion – Nehanda Radio – https://t.co/OZgyGgBQFd https://t.co/…
Handizive hangu asi hudofo here hune vanhu ava?
Which government are taking about,does Zimbabwe got a government?
Imbavha idzi mari yacho yakaendepi what was the needy to borrow??
When your leadership is blind but power hungry. Chinese people are very smart.
Hatitye Dizha was there anything Biti could have done during the time he was Minister of finance about this?
Madofo ezanu ka,
Borrowing 1mBond using 50mUsd is insane and outright plundering meaning the debt mustn’t be serviced for the collat to go.
#reportlooting*
Hakuna maths dzakadaro,Zim will remain poor while other countries are developing& prospering.
Zanu kuda kuisa mari muhomwe chete madzenga aya
There is nothing of this sort. Pure journalistic hogwash.
Maurice Maswiswi are you say the Minster of finace never said it in parliament??
Maurice Maswiswi the video is there where he ask it in Parliament and there was a debate on it
Maurice Maswiswi Adako. Mwana wemhata. Mwana wenhundiramutsime. Can’t u understand a simple fact from Biti? Irritating ediot.
Maurice Maswiswi it was in parliament that’s where the journalist got it
Maurice Maswiswi face yako says it all
Itayi Tione. I was going to say you are a dumb ass motherfucker. On second thought i figured you a just a son of a bitch. Fucked up mentally and high on meth.
Blaz John..fine it was said under priviledge in parliament. But where does the Zimbabwean government get the platinum yet it does not own any platinum mines. 26 million ounces from which source over how many years. Btw how many ounces do we produce collectively (zimplats, Unki, mimosa, Great Dyke) per year? That should get us thinking. I can say anything wild in parliament knowing my speech is protected no matter the absurdity.
I will defend that platinum
I give up 😳😳
OGrade zero lokhu,, stupid izinto lezi
Veduwe tosvikepi
There is a word for it…. kupinyurisa
Moyo Uno Ziwa Simoyi makazodii king nema pics atakatorwa na bla Tich aya
Biti you which to be minister of finance again forget
Joseph Kudiwa yes he which!!
Grade 4D!!
Joseph Kudiwa zvibate iwee
Joseph Kudiwa kkkk nyora shona tinonzwa and yes even me its mywhish also it was far much better
Taurai shona mudhara
Thus the look East slogan they call policy!
Then Zanupf Shiites shouts ” we stand with China & Russia our liberators!
Now this is the real cost of liberation!!
Ncagu Sbhamusogodo. Nothing to it. Dont be fooled by eye catching headline and attention grabbing soundbites from erstwhile politicians. Basically high sounding nothings.
Maurice Maswiswi you are incoherent!
We lack proper leaders
To be honest varikuseka apa hapana chinosekesa,izvi zvinotonzwisa hasha chaidzo
Zimbabwe is turning out to be the most corrupt country this side of Africa.
Collen Moyo In the whole world hey
Mugabe achimupenyu😁
Jeclina Daimana wonzwa umwe achiti Mugabe aiwe nani kkkkkk
Zimbabwe does not have a government
ZANU pf real criminals
Return the 200 million and let’s keep our platinum. Simple !!
Wonzwa rimwe richiti masanctions ndoauraya nyika,nyika irikutongwa nemadofo
Noel Magwaza Saka masanctions arikuvaka nyika here
Jesus, were are going as a country, guys we need to be serious this regime is a laughing stalk why? But why why
Calculating and looting in advance don’t confuse us wth figures
These guys may not be that corrupt after all. Madofo and it’s costing us
Baba Takura they benefit one way or the other thru these deals.
Madness
Zvakangofanana deal or no deal Zimbabwe yakatengeserwa China kudhara naMugabe haiwa
And someone will say “Zanupf is my hope”
Tichasara nechinhu here patobvisa ana🐕 ava honestly…..
What?😂😂😂
The govt of #Zimbabwe took a USD$200 million-loan from #China, and they collateralize it with assets worth $52 billion. It seems that the govt initially lied about the loan.
And that is not the scariest part of it at all.
https://t.co/gUAvaggmZ0
Nyika yedu yakanokorwa tsoka muroyi wacho achibva afa
Gelvado T Manjengwa kkkkkkk
Kutunhamirirwa nezvipoko chaizvo ndokunonzi kupusa sure