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China furious with government, cancel deals worth 1.3 billion over Nostro Accounts issue

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John Mangudya

China furious with the government, cancel deals worth 1.3 billion over Nostro Accounts issue. In a depressing development, the Chinese have suspended funding for infrastructural projects totalling US$1,324 billion after the government raided its Foreign Currency accounts. The government is reported to have raided and diverted US$10 million which was meant for the expansion of the Robert Mugabe International Airport.

The raiding of the account did not go down well with the Chinese who were shocked by the breach of trust. As a result, all Chinese institutions have indefinitely suspended funding for any projects.

The Zimbabwe Independent reports that the projects which will be affected as the US$1,1 billion Hwange 7 and 8 refurbishment, US$153 million Robert Mugabe International Airport expansion and the US$71 million NetOne expansion project.

An official who spoke to The Zimbabwe Independent said,

Basically what happened is that the RBZ raided the escrow account for the Airport project and that move destroyed confidence and trust. There have been negotiations for the money to be returned but the government is not being honourable enough.

The Chinese were patient, but this happened at the beginning of the year and they have now run out of patience. Chinese financial institutions have taken the decision to cease funding the three projects.

It’s a matter of principle, trust and confidence. How can you trust a pickpocket with your money? If someone steals money from your pocket, can you trust them with your money in future? Those are the questions the Chinese are asking.

The Chinese have now resorted to withdrawing their funding as a last resort. It seems the government does not know how serious the issue is and there is risk that the country could lose projects worth more than US$1 billion the theft of US$10 million.

Source – iHarare

In other news – Popular radio DJ collapses and dies

Popular radio DJ collapses and dies. A former radio disc jockey, Caleb Thodhlana popularly known as Mr CT, has died. He was 60. The former presenter worked for ZBC’s then Radio 3 in the ‘80s and ‘90s and has been described as “one of the best rap DJs,” by those who worked with him.

Caleb Thodhlana

According to his younger brother, veteran journalist Barnabas Thodhlana, Mr CT collapsed and died on Monday in South Africa due to high blood pressure complications…continue reading.

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