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Ambassador Chris Mutsvangwa

Tendai Mugabe Senior Reporter
Foreign Affairs Deputy Minister Chris Mutsvangwa yesterday castigated Government for failing to repay its international loans, saying such behaviour impacted negatively on the country’s relations with the comity of nations. He said Government believed that loans from countries like China should not be serviced because they are from “our friends”.

Deputy Minister Mutsvangwa was addressing students taking Joint Command and Staff Course No. 27 at the Zimbabwe Staff College in Harare yesterday.

“We have moves here to say let us ask China to get forgiveness. Getting forgiveness means you are committing credit suicide. You are denying yourself capital access. We somehow believe that loans from China should not be serviced when we do not perform,” he said.

Deputy Minister Mutsvangwa said a case in point was when the Central Intelligence Organisation borrowed US$70 million from China to start a tractor company in partnership with locals.

“The directors of that company squandered all that money. Today the loan is with the Minister of Finance. It is being paid by taxpayers’ money. We have no good credit rating with China.”

Deputy Minister Mutsvangwa said the countries and institutions prepared to extend loans would first rate your credit worthiness.
He said China was a global giant, hence the need to keep a sound relationship with it.

The deputy minister said even Western countries were thronging Beijing for financial support.
“Britain is looking for money from China. If you go to church and the bishop has gone to another church then you are going to the wrong church. Go to the church where the bishop is. Ask where the British have gone to look for money,” he said.

Deputy Minister Mutsvangwa said Britain and Germany were fighting to become clearing houses for the Chinese yuan because that currency would eventually replace the US dollar as the world’s most used form of exchange.