Source: Chinamasa endures torrid time during overseas trip – The Zimbabwe Independent July 8, 2016
FINANCE minister Patrick Chinamasa had a torrid time during his current trip to France, Belgium and United Kingdom as he was grilled on the indigenisation policy, rule of law and human rights abuses, while he was mobbed by protestors in London amid indications that he will return home empty-handed without a financial bailout.
By Fidelity Mhlanga
Chinamasa, who has been virtually fighting a lone battle in government to re-engage the West through the debt clearance strategy with International Financial Institutions while attempting to attract investors and secure fresh funding, held three separate meetings in France last Thursday with French Finance Minister Michel Sapin, MEDEF-French Business Association and private companies.
During a question and answer session after Chinamasa made a presentation to MEDEF-French Business Association, corporate execuives confronted him on the clarifications made by President Robert Mugabe on the indigenisation policy.
Chinamasa said the law and the attendant changes will be re-aligned before year end.
“The main message was centred on improving the business environment, clarifying the indigenisation policy by changing the law, implement reforms, and more so the general political climate in the country,” French ambassador to Zimbabwe Laurent Delahousse said.
Chinamasa also updated the association’s members on the debt strategy and the Lima process, while also pleading with the France to channel monetary support to the private sector citing Proparco which in 2014 channelled US$20 million to local banks as an example.
“In two of the three meetings held, the arrest of Mayor (Bernard ) Manyenyeni was raised. The arrest sent a bad signal in terms of attracting investment in the country. The French government is looking for continuous improvement of human rights. The arrest of Mayor Manyenyeni was mentioned as a troublesome factor,” Delahousse said.
Manyenyeni was arrested soon after winning his suspension case by the Zimbabwe Anti-Corruption Commission for unprocedurally employing Harare Town Clerk James Mushore a day before Chinamasa held meetings in France.
Activist Itai Dzamara’s forced disappearance is also still an issue. Chinamasa took time to outline challenges Zimbabwe’s economy was facing, particularly the cash crisis currently buffeting the country.
In terms of new investment, Chinamasa also pointed out that France was now second after China. Discussions with French Minister of Finance Michel Sapin were centred on the Lima process and attracting foreign direct investment to Zimbabwe. Chinamasa pleaded with France to help convince other partners in the Paris club.
On his side, Sapin commended the role played by Chinamasa in the engagement process and pledged to help bring consensus among the Paris Club partners through roundtable discussions. He, however, pointed out that Zimbabwe has to deal with clearing arrears first.
On Tuesday angry protesters carrying placards written “No Western loans for Zanu PF” confronted Chinamasa at the London venue where he was addressing investors.
The protesters, some of whom hurled unprintable insults at him, quizzed him over the missing US$15 billion diamond revenue, as President Robert Mugabe revealed during his 92nd birthday interview, before British police intervened and escorted him away.
The under fire Chinamasa ducked several questions during an interview on the BBC HardTalk programme on issues regarding Mugabe’s old age and Zanu PF’s raging succession battles.
Zimbabwe has an ambitious external arrears clearance strategy to pay off US$1,8 billion overdue to multilateral creditors, in a bid to break its debt vicious cycle and secure at least US$2 billion in new funding to rescue a crumbling economy ravaged by a severe liquidity crunch and cash shortages, under the Lima Plan.
Currently saddled with a debt overhang of US$10,8 billion, Zimbabwe’s debt arrears amount to US$5,6 billion split between multilateral creditors (US$2,2 billion), the Paris Club, an informal grouping of bilateral creditor nations (US$2,7 billion), and non-Paris Club creditors (US$700 million).
The country has arrears estimated at US$1,8 billion with its three preferred creditors, International Monetary Fund (IMF), World Bank and African Development Bank (AfDB).
Under the Lima Plan, Zimbabwe will secure US$819 million bridge finance from the African Export-Import Bank to repay arrears to the AfDB (US$585 million); African Development Fund of the AfDB (US$16 million) and US$218 million to International Development Association, a World Bank fund for poor countries. It will also need US$896 million to repay arrears to a World Bank associate, the International Bank for Reconstruction and Development, and the IMF US$110 million. To get new funding from the AfDB, Zimbabwe — classified as one of the vulnerable economies on the continent together with Sudan, Somalia and Eritrea — needs to clear its arrears first before the end of the year and come up with a serious economic recovery programme. Chinamasa will return empty-handed.
COMMENTS
DOES ANYONE KNOW IF THIS IS TRUE ?
Chinamasa in Britain
Zimbabwean finance minister Patrick Chinamasa who is popular for lambasting Europeans in Zimbabwe has arrived in London amid reports he is seeking a $10 billion loan for the beleaguered country led by nonagenarian Robert Gabriel Mugabe. Chinamasa was received with a cold shoulder by the British foreign secretary as he sought audience with prime minister David Cameron to which the prime minister was said not to be interested. He later met with the chancellor of the exchequer and laid down his case. Sources say he was promised aid but with stringent terms.
1. Free and fair all participatory elections by June 2017
2. Immediate repealing of the controversial indigenization law which calls for 51% ownership of foreign companies by select Zimbabwean officials
3. Commitment to revisiting the land reform exercise with immediate effect
4. Establishment of a United Nations led watchdog from August 1st 2016 to June 2017 the time at which fresh elections are to be held
5. Depoliticizing the armed forces
6. Enactment of an anti corruption taskforce and the establishment of a new Zimbabwe electoral commission and a new voter’s roll and the reduction of parliamentary and Senate composition.
7. The liberalisation of the airwaves allowing for the entry of various radio, television and newspapers.
8. The prosecution of all known Human rights violators
Mrs Samantha May who is seen as a potential successor to prime minister Cameron was said to be interested in resuscitating dialogue and normalizing ties between the two countries. Britain is expected to have a new prime minister by October 1st. This is what Zimbabwe was banking on but with these terms it is yet to be seen if the country is committed to change and the betterment of it’s citizens.
Britain has always been open to dialogue but it comes only after the country gets off the tracks of self destruction. On the issue of President Mugabe Britain demanded that he steps down by 1st December and an interim government comprised of political parties and civic organizations be sworn in with a neutral person becoming President to run and oversee the implementation of the changes and the holding of free and fair elections.
The ruling ZANU PF has called an emergency Politburo meeting on Wednesday the 6th of July to discuss this issue although they are tight lipped about it only saying the meeting has to deal with party factionalism and the prevailing cash crunch.
Source BBC/Africa
It is probably rubbish as the most likely candidate to replace David Cameron is Theresa May, but one lives in hope.
It is just ridiculous that Chinamasa would be granted meetings by any overseas Government entity. Zimbabwe is notorious for its endemic corruption and mismanagement. It doesn’t end anywhere near the missing $15 billion for a start, which by the way is 3-4 times the country’s GNP. Probably the biggest heist in history and not one single person has been arrested for ‘under invoicing’
Ask Chinamasa-
When last was a Government entity audited?
Why are salaries of parastatal bosses through the roof in a bankrupt country?
What was the salary of that Medical Aid boss again? Was it $500 000 a month? What is the state of the medical infrastructure in the country?
Why is the civil service so massive?
Why is corruption and theft so pervasive-every day you read about the daylight robbery going on.
How come various Ministers are multimillionaires yet the country is bankrupt.
Why do various Zanu linked people own multiple unproductive farms?
Why does Mugabe use the national airline to transport him and his entourage to Singapore on the taxpayer dime for holidays and medical treatment?
Why do your educated elite believe that diesel oozes from rocks?
How successful has the magnificent Agrarian revolution turned out. How is Kondozi performing?
etc etc ad nauseum
I mean we all know what is going on-it’s a madhouse. Without a doubt any money given to this delinquent regime will disappear through corruption. And should the regime fall one day, the next Government will have to pay back all monies lent that has funded this vicious, unconscionably corrupt regime. What an outrage!
And here we have Chinamasa stating that sanctions are to blame. Give me a break.
Well said Sir, but you are relatively kind to Mugabe’s Government. After all the Gukuruhandi was genocide plain and simple. The removal, of those black peasants evicted from the farms by the Farm Theft programme, from the squatter camp they were living in was declared a crime against humanity. Mugabe and all his cohorts including the luckless People First thieves should all be on trial at the Hague.
Zanooo stole the money. Simple. We all know that.
There is no Rule of L:aw – we also all know that.
Zanooo CANNOT survive if there was the Rule of Law – we all know that too.
What is the justification of spending 90%of the state workforce on road blocks .Who attends to all other police duties when this workforce is collecting bribes . How much time and money is spent deploying these corrupt officers to their respective collection points .What does the tax payer benefit from a system where there is nobody to attend to their cases .Shame on you minister of home affairs for allowing this rot to go on under your nose