Mangoma tears into ‘mega deals’

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Elton Mangoma

RENEWAL Democrats of Zimbabwe (RDZ) president Elton Mangoma has dismissed the recently signed “mega” deals between Zimbabwe and China, saying only four of them were of material worth.

BY OBEY MANAYITI

Addressing journalists in Harare yesterday, Mangoma alleged Zimbabwe was being exploited by China, saying the deals signed with the Asian giant were motivated by greed.

“Only four of the agreements involve money. All the others mean very little to the ordinary Zimbabwean people,” he said.

“In our view, these deals are driven by greed and corruption and they must be stopped. So rather than celebrating, we should be sad that the major part of our resources is going away.”

The deals involved $1 billion loan for the construction of units 7 and 8 at Hwange Power Station and a $98 million loan for fibre for TelOne.
The RDZ leader, however, said the Hwange deal was overdue as the tender was done in 2012 and the undue delay was unwarranted because the country was facing erratic power supplies.

Mangoma said the government misdirected itself in entering into the TelOne deal, arguing there already existed fibre-powered government entities particularly NetOne and Powertel.

Deals he considered “non-event” include the aviation co-operation agreement, and the agreement to construct a new pharmaceutical warehouse because the country already had one in Southerton, Harare, which, however, was understocked. He also dismissed the exchange of notes on the construction of a new Parliament building.

Turning to the private sector, Mangoma said: “AVM Africa has an agreement worth $1,5 billion for the assembly of motor vehicles in Zimbabwe. This could be a green shoot in the very brown field, but could be scorched by the economic El Nino.”

Mangoma also dismissed the recently presented 2016 National Budget, saying it was not inspiring at all and had nothing for the ordinary Zimbabwean.

“The budget has not been balanced and will reflect a deficit in 2016 following another deficit in 2015. These deficits will further have a debilitating impact on the performance of the economy.

“The budget deficit will be financed from local borrowing, thus crowding out the private sector and making the government’s unsustainable debt position worse,” he said while providing his party as the only solution to the country’s problems.

4 COMMENTS

  1. You are making a lot of sense Mangoma despite your orientation. Leaders must be bold and good analysts themselves and that is dynamic. I agree with you 100%

    • I agree with you Mr Mangoma…your problem lies on accusing what other Zimbabweans are trying to achieve…you were in the GNU what did you implement to sustain the Mega Deals…don’t just send wrong massage to the entire World about the Zimbabwean National Budget….you always keep blaming some other people’s plans without coming with solutions..please be mature in your common sense…….Mr Elton Mangoma….

  2. Mangoma is right.
    These deals show how foolish our leaders are.
    These Chinese deals come at Chinese terms, terms that are favourable to the Chinese. They are not the best competitive deals on the open market but our leaders can’t think.
    The companies who do the jobs are Chinese companies and they try at all means to use Chinese sourced equipment not necessarily the best equipment but certainly the cheapest.
    If the government had floated an international tender they could have got a much competitive deal with the job being finished in record time. Not these Chinese overpriced mega deals – they are indeed mega because the pricing is very steep.
    In the meantime China is creating lots of jobs to service the African market. Look at the National sports stadium – good deal or bad deal?

    • You seem to be forgetting that it’s the financing that made us go to bed with China. It’s not like Zim has $$ in which case they could have “..floated an international tender they could have got a much competitive deal with the job being finished in record time..”

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