Biti warns Kereke over $500m IMF cash

via Biti warns Kereke over $500m IMF cash 05/02/2014 NewZimbabwe

FORMER Finance Minister Tendai Biti has declared he will sue ex-Reserve Bank of Zimbabwe (RBZ) top advisor Munyaradzi Kereke for slander.

Biti told journalists in Harare Tuesday that his hands are clean over allegations of abusing about US$500 million secured from the International Monetary Fund (IMF) during his time as Finance Minister.

“We used that money for capital projects including water. I think then Water Minister Samuel Sipepa Nkomo who is here can testify to that. Cabinet ministers were asked to sign agreement forms in the funding of projects under their care,” said Biti.

Biti is representing Gideon Gono in a Constitutional Court case between the former RBZ chief and his erstwhile advisor.

Kereke wants the ConCourt to compel the Zimbabwe Anti-Corruption Commission to investigate Gono for alleged abuse of authority and looting millions in State funds from the central bank.

The Bikita West MP told the court that Biti could not act as Gono’s lawyer because “he is a witness and co-criminal”.

Biti threatened to sue.

“On the issue of us having abused state funds from the International Monetary Fund (IMF) Special Drawing Rights (SDR), we have explained ourselves.

“There is no way that I would have stolen under Zanu PF and walked scot-free; they would have locked me up at the first opportunity. I will sue Kereke when the time comes,” said Biti.

The ex-finance minister provided Wednesday with what he said was a break-down of how he used the $260 million received from the IMF between 2009 and 2012.

“The IMF executive board allocated to Zimbabwe SDR 328.4 billion ($505 million) of which $411.9 million was under the general SDR allocation of 28 August 2009,” said Biti.

“A special allocation of $93.1 million was escrowed pending the clearance of the outstanding arrears to the Poverty Reduction and Growth Facility Trust Fund (PRGF-TF) amounting to $141 million”.

The MDC-T secretary general explained that he had only withdrawn $260 million of the half a billion allocated to Zimbabwe.

“The first tranche of $50 million was expended towards procurement of agricultural inputs for the 200/10 summer cropping season,” he said.

“The second tranche of $100 million drawn on February 23, 2010 was disbursed towards infrastructure projects ($80.5 million) as well as support to industry through lines of credit under the Zimbabwe Economic and Trade Revival Facility (ZETREF) ($19.54 million.”

He added that the last tranche of $110 million drawn on February 24 2012 was also channelled towards infrastructure projects, lines of credit and agriculture support.

Some of the companies and state institutions that benefited ,according to Biti, include the Zimbabwe Power Company $10 million while support to industry reached $19.5 million.

Marondera Town Council, Harare and Joshua Nkomo International Airports, Parirenyatwa and Mpilo hospitals, Agriculture and Tokwe Mukorsi and Mtshabezi pipeline received a combined $17 million.

President Robert Mugabe last year also accused Biti of abusing the $500 million.

Kereke claimed the money Biti withdrew from the IMF seemed to disappear without trace on arrival in Zimbabwe. He averred that the Apex bank’s external auditors had exposed the theft.

“True to their diligence external auditors BDO Kudenga picked that SDR 31,5 million IMF drawing rights valued at $49,2 million had been withdrawn from the RBZ account but without any trace of documentation,” said Kereke.



  • comment-avatar
    Doubt Motsi 9 years ago

    Lets be zimbabweans if evidences from the house scandals is there , let those preside expose what appears as if Biti , Kereke ,Gono argues. We have an acting governor in the office she must check all records via forensic audit to prove what these guys argued for. Guys , God is there as an eye of the nation. Be clean and warned.

  • comment-avatar
    munzwa 9 years ago

    if this is true, reason, why did’nt Kereke spill the beans when Biti was in office??slowly the can of worms is opening..

  • comment-avatar
    easily fooled 9 years ago

    Kereke doesnt want Biti to represent Gono

  • comment-avatar

    though corrupt he mau be, kereke is definitely one brave Zimbabwean. remember his letter to Mai mujuru, his refusal to be intimidated by zanu pf, his battle with Gono.
    methinks we need a little more of guys with guts like him. surely a group of these guys can challenge the oppressors.

  • comment-avatar
    Ndebvu Mukomichi 9 years ago

    The Story so Far:
    1. Mr $217 aka bete muBiti as Fin Minister gets $500m for Zim’s needs, including the boosting of agricultural production by resettled farmers.

    2. bete muBiti witholds some of the funds from resettled farmers because he ‘is saving it for the referendum and elections 2013’. Very sensible we all say.

    3. Come election time bete muBiti says ‘there is no money for elections’ and fights for them to be delayed so that he can prolong his ministerial term and forestall his party’s electoral defeat, for he sees the writing on the wall. But what happened to those savings? you ask, but you get no answer.

    4. Enter honourable Kereke to confirm your suspicions that bete muBiti is not so clean after all. The money was diverted to other uses through escrow and other conduits. then who can be saved you ask? – noone, we all fall short.

    5. bete muBiti’s response – ‘shut up now or I will sue you MP Kereke.’

    Judge for yourself.