In an opinion piece a correspondent for The Herald argues Tendai Biti summoned Reserve Bank Governor, John Mangudya, to appear before the Parliamentary Public Accounts Committee (PAC) to play politics, unsettle financial markets and discourage multilateral financial institutions from giving Zimbabwe loans.
The correspondent writes that Biti is using the hearing to damage Zimbabwe’s relations with multilateral financial institutions and justify his call for financial sanctions on the country. Below is an excerpt of the opinion piece by The Herald’s correspondent:
…Biti’s misinformation is a calculated manoeuvre to damage relations between Zimbabwe and multilateral financial institutions and in the process perpetuate his calls for financial sanctions on the country. Biti is pushing the agenda that the lines of credit worth approximately US$986 million that the RBZ recently negotiated with external lenders are null and void.
Biti is trying to cause disquiet by the lenders who include Afreximbank, which extended US$641 million, PTA Bank (US$152 million), the Central Bank of Mozambique (US$25 million), AfDB (US$15 million), PTA Re-insurance (US$9 million) and the South African Minting Company (US$1,9 million). All the loans were contracted procedurally and with ministerial consent as well as being presented to Parliament for ratification.
It is in the public domain that Biti, in cahoots with a United States Senator, John Flake, perennially lobby for the renewal of US sanctions on Zimbabwe through ZDERA. In that regard, Biti is agonising over the counter-balancing effect of the assistance Zimbabwe is getting from the cited lenders
Tendai Laxton Biti is the president of the People's Democratic Party, a prominent lawyer, activist, politician and Member of Parliament for Harare East. Biti was part of the founding team of the Movement for Democratic Change in 1999 together with Morgan Tsvangirai, Gibson Sibanda, Welshman... Read More About Tendai Biti
John Panonetsa Mangudya is an economist and the current Reserve Bank of Zimbabwe governor. Mangudya, who sits on many local and international boards .He was made RBZ governor after the expiry of Gideon Gono's term in 2014. He had been CBZ Holdings Ltd Chief Executive... Read More About John Mangudya
Zimbabwe Democracy and Economic Recovery Act Of 2001 was passed and ratified by the United States of America Congress and allegedly meant To provide for a transition to democracy and to promote economic recovery in Zimbabwe. The Zimbabwe Democracy and Economic Recovery Act (S. 494)... Read More About ZDERA