The government is sharply divided following Cabinet’s decision to cancel the US$400 million National Railways of Zimbabwe (NRZ) recapitalisation deal won by a consortium involving the Diaspora Infrastructure Development Group (DIDG) and Transet (a South African rail, ports and pipeline utility). The deal has also reportedly sucked in the military.
According to The Independent, there are two rival groups pitting Foreign Affairs and International Trade minister Sibusiso Moyo and Transport minister Joel Biggie Matiza. The publication quotes its sources as saying:
He (Matiza) reported that it is not ideal to have a neighbouring country invest in such a strategic state enterprise. He claimed the army’s concern was that in case of mutual hostilities, the deal would leave the country extremely vulnerable since South Africa would be having knowledge and control over our systems and signals.
Government spokesperson, Nick Mangwana on Tuesday released a statement in which he stated that cabinet had terminated the multi-million dollar deal.
However, DIDG on Thursday issued its own counter-statement, saying it has not yet received any communication from NRZ, therefore legally, the deal has not been cancelled.