FINANCE minister Tendai Biti yesterday said President Robert Mugabe has agreed that a United Nations fact-finding mission should visit Zimbabwe to assess funding requirements for the forthcoming elections.
Report by Everson Mushava
The country will vote on Saturday to adopt or reject a new constitution, but government is still struggling to raise $132 million needed for elections later this year.
There have been conflicting reports about the fundraising for the elections with Justice minister Patrick Chinamasa insisting the money must be raised locally.
Zanu PF is against the funding of the polls by donors despite Mugabe and Prime Minister Morgan Tsvangirai instructing their ministers to approach the United Nations Development Programme (UNDP) for assistance.
Biti said the government had raised $40 million from a special bond floated to Old Mutual and the National Social Security Authority (NSSA) to finance the referendum.
But the minister said the country still needed assistance from the UN to raise cash for the polls.
“Given the large resource requirements for funding the election programme, recourse to co-operating partners’ support will be necessary,” Biti said while presenting a state of the economy report for February.
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“Last Thursday, I had a lengthy meeting with President Robert Mugabe and Justice minister Patrick Chinamasa and we agreed that the UN needs assessment team should be allowed in Zimbabwe.”
“I have already written to the UN and the necessary communications to invite the mission are being conveyed.”
In January, Zimbabwe appealed to UNDP for $250 million required for the referendum and harmonised elections.
UNDP said it would not be able to mobilise funds for the referendum because of the short notice, but indicated its readiness to help in preparations for the polls.
Biti said his ministry had also appealed to Mugabe and Tsvangirai to put pressure on diamond mining companies in Chiadzwa to pay Treasury its share of proceeds from the sale of the precious mineral.
“Treasury and the Ministry of Mines’ discussions with the four Marange alluvial diamond producers over 2012 outstanding revenues to the fiscus from the diamond sector have so far not yielded results,” he said.
“We have appealed for the intervention of the principals.” The minister said the four companies — Diamond Mining Company of Zimbabwe, Mbada, Anjin and Marange Resources — only remitted $45 million for 2012 after realising $800 million from diamond exports.
Biti said government also hoped to raise $180 million from each mobile phone operator whose licences are due for renewal this year.
The 15-year licence currently pegged at $100 million will be reviewed in June, the minister said.
“This should be leveraged in supporting some of the financial requirements for both the referendum and electoral programmes,” Biti said.
He said NSSA and Old Mutual were not arm-twisted into taking up the Treasury Bills.
“These are loans. We are not arm-twisting any company,” he said. “It is voluntary and government will pay back at the agreed interest rate.”
He said government still felt that the Zimbabwe Electoral Commission’s $85 million budget for the referendum was “excessive” and it was being “streamlined”.
