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ZAMCO-Mangundya-AfreximBank

1. Last week I did a thread on the RBZ-ZAMCO-CBZ axis of corruption & showed how the bank formerly headed by RBZ Governor Mangundya was the principal beneficiary of the ZAMCO scheme that he set up upon taking office. Today, it’s about @afreximbank
2. One of the banks that sold non-performing loans is AfreximBank, the only non-Zimbabwean financial institution in the list. @afreximbank is based in Cairo. It has a regional office in Harare. I was surprised to see it on the list of banks from whom NPLs were bought by ZAMCO.
3. AfreximBank doesn’t just give loans to the likes of Tom, Dick & Harry. Whoever got these loans & failed to repay is no small person. @afreximbank made reckless lending decisions. Didn’t it ask for collateral? Why should the Zim taxpayer pick the cost of their recklessness?
4. This is why it’s important to know who is on the list of borrowers who got loans from @afreximbank but failed, refused or neglected to pay them back. It is because of that failure that they became NPLs & now the Zimbabwean taxpayer is carrying the cost #ZAMCOlist
5. RBZ Governor John Mangundya is a board member of @afreximbank and has been for a long time. This places Mangundya at the centre of 2 relationships with ZAMCO, 1st as CBZ CEO, which sold US$698 million NPLs & 2nd as AfreximBank Director which sold US$42,7 million NPLs.
6. This presents a prima facie case of conflict of interest & demands full transparency. This is to ensure that Governor Mangundya did not abuse his position to benefit himself or those with whom he was/is associated. If there’s nothing to hide the #ZAMCOlist should be disclosed.
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Alex T Magaisa 🇿🇼
@Wamagaisa
1. I’ve no idea whether the letter is fake. But I will indulge you & comment on the ZDDI, which I had the honour to chair a decade ago. As its name implies, its purpose was to create an interface between the Diaspora & the Zimbabwean Government, which it did with modest success
2. In September 2009, the ZDDI hosted an investment conference in London officiated by Ministers of the Zim Government, our Embassy and the private sector including the head of Zimbabwe Investment Authority & the ZSE. All of this is in the public record.
3. Please feel free to check with the Zimbabwean Embassy in London & you will find that the ZDDI was known to them & had cordial relations with them. Indeed, they were important participants at the said conference which was meant for Zimbabwe’s development.
Read 5 tweets
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Alex T Magaisa 🇿🇼
@Wamagaisa
1. While we’re here @DakaraiMap I notice your company Platinum Agriculture had US$500 million Chinese loans GUARANTEED by the Zim Government i.e. the taxpayer would pay if Platinum defaulted. The source of defensiveness is becoming more apparent. But you’re entitled to be heard
2. In our Constitution, a guarantee of a loan by the Government must be declared to & approved by Parliament. This is vital because guarantees add to public debt as a contingent liability. This is a real risk where a borrower who gets a state guarantee fails/neglects to pay.
3. It would mean the private loan was a front for a taxpayer funded scheme. In other words, private individuals would have used public funds to finance their personal projects. This is why such government guarantees require scrutiny.
Read 5 tweets
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Alex T Magaisa 🇿🇼
@Wamagaisa
The RBZ-ZAMCO-CBZ axis

1. This thread is a summary of a section of the #BSR this week. I explain the opaque arrangements concerning a state entity called ZAMCO and how large debts acquired by ZANU PF’s political elites were foisted on the shoulders of ordinary taxpayers.
2. The principal actors in this systemically corrupt arrangement whose authors gave it a veneer of legality are the central bank RBZ, which formed ZAMCO to buy non-Performing Loans from banks of which the principal beneficiary was CBZ. Add RBZ Governor, John Panonetsa Mangundya.
3. In brief, non-performing loans (NPLs) are bad bank loans which are no longer being repaid by borrowers. A bank might have NPLs for any number of reasons including the fact that some borrowers act with impunity because nothing will happen to them if they don’t repay the loan.
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