Chiadzwa diamonds to pay Chinese spy centre loan As Zvoma misleads MPs

Details of the loan agreement obtained by The Zimbabwean show that all revenues from the government's joint venture with the Chinese firm Anjin over the next 20 years may already have been mortgaged to Beijing.

Under the agreement that was rushed through parliament amid strong MDC objections, Zimbabwe has also been ordered to buy all materials to be used at the college from China and employ only Chinese personnel in key posts during the construction.

The deal was presented to parliament on May 30 to impress a visiting delegation of Chinese military brass.

The arrangement has raised concerns that Beijing will use the opportunity to install facilities to spy on the Zimbabwean government itself in the event that someone who is not favourable to China, such as Morgan Tsvangirai, comes to power.

Also known as the National Defense College, the centre will feature Chinese equipment built by technology giant Huawei to eavesdrop on diplomatic, political, business and private communications.

The monitoring group Veritas last week expressed deep reservations over the agreement, saying it would not benefit the majority of Zimbabweans.

“Public concern has focused on the diversion of diamond receipts from far more pressing needs, on the fact that the NDC will benefit an elite few rather than the struggling general population, and on reports that the complex will include VIP recreational facilities and medical facilities – in contrast to the lack of health facilities for the general population – and a 'techno-spy centre',” Veritas said.

In particular, Veritas objected to a section of the agreement stating that the income from Chiadzwa diamonds mined by Anjin and Zimbabwe Mining Development Corporation would be placed in a special account for direct transfer to Beijing without going through treasury.

Some observers have called this arrangement 'criminal' as all government revenues must go directly to treasury to be distributed through the normal budgetary system with parliamentary oversight.

“Article 9 in effect requires the government to ensure that its income from the Sino-Zimbabwean Anjin joint diamond mining venture at Chiadzwa will be dedicated to making payments due under the loan agreement – to actually draw on the loan the government must first enter into an agreement 'to establish an escrow account to secure the payment and repayment of the facility with the revenue of the Zimbabwe side's benefits from Anjin Investment (Pvt) Ltd',” Veritas said in a commentary.

Meanwhile, MDC MPs have accused clerk of parliament Austin Zvoma of misleading them into believing that the House of Assembly was being reconvened early to deal with multilateral agreements and protocols, only to be ambushed and told to endorse the defense deal.

Zanu (PF) MPs had been informed about the impending agreement and had discussed it during a caucus meeting on May 29. Most MDC MPs only saw the agreement on May 30, just hours before the acrimonious debate that eventually saw the deal being passed by the Senate.

“We never had time to consult or get the views of the voters as should always be done with such loans, which are a burden on taxpayers way into the future,” said a legislator.

The loan would have ballooned to about $140 million by the time payments are completed in 20 years time.