Former Ministers slam Zimbabwe’s Mutapa Investment Fund as “grand heist”

Former Zimbabwean ministers Tendai Biti and Saviour Kasukuwere have strongly criticised President Emmerson Mnangagwa’s decision to establish the Mutapa Investment Fund, labeling it a “grand heist” of the country’s resources.

The Mutapa Investment Fund was created through a statutory instrument in September, which transferred shares in 20 state-owned enterprises to the fund. The move has been widely criticised for lacking transparency and accountability.

Biti, a former finance minister, alleged that the fund is a “backdoor privatisation” of the country’s key parastatals, including Hwange Colliery, National Railways of Zimbabwe, and NetOne.

He claimed that the process was done without individual valuations of the parastatals and parliamentary scrutiny.

“The Mutapa Fund now controls a huge chunk of the country’s balance sheet, and yet it is not accountable to Parliament or a line ministry.

“It is a huge Asset Management Fund, privately controlled, yet it houses State Assets. This kind of arbitrage and theft is a national threat,” Biti posted on his X handle.

“The repeal of section 22 of the Sovereign Wealth Fund Act, which prevents the Mutapa Fund from securitising the shares of parastatals it now controls, is proof of arbitrage on steroids.

“This regime has no limits, nor elasticity, no shame. The Mutapa Fund and those who control it are a national threat to the country’s sovereignty. A country can’t be run on the philosophy and polity of looting for the sake of looting.

“The class of 2017 is a cabal, a ruthless brood whose only interest is to loot Zimbabwe dry.”

Kasukuwere, a former Cabinet Minister, echoed Biti’s sentiments, stating that the decision to suspend the procurement act “deals the grand heist of our time.” He argued that the move allows the government to use taxes without accountability.

“To make matters worse, the decision to suspend the procurement act deals the grand heist of our time,” the former Local Government Minister said.

“Effectively, they will use the taxes as they see fit and without accountability.”

The fund has raised concerns due to its opaque nature, granting Mnangagwa absolute authority to appoint key positions, including the CEO, Chief Investment Officer, and all eight board members.

Although the President may consult the Minister, he is not obligated to consider their recommendations.

Critics argue that this arrangement increases the risk of elite looting and lack of accountability.

The removal of the requirement to present the Board’s reports to Parliament, as stipulated in Statutory Instrument 156/2023, has further worsened concerns about transparency and public scrutiny. The Board now only submits reports to the President and the Minister of Finance.