Mabenge said citizens had the right to know how the country accrued its $10, 7 billion debt, mostly owed to foreign countries and financial institutions such as the African Development Bank, International Monetary Fund and World Bank.
“The country’s finances should not be paying off external debts,” said Mabenge.
She said an audit was critical and it was wrong for the government to prioritise the country’s debt at the expense of the general populace, who for many years “had been sidelined as to how that money was utilised”.
Mabenge questioned why the government was fast tracking arrears clearance at the expense of its impoverished citizens.
“We are saying no to repayment of the country’s debt. That money should first go towards the development of the country. Revive the industries and then the country will be in a position to pay off that debt.”
Economic analyst, Eric Bloch, said a debt audit was necessary before the country started paying off its loans.
“The audit should have been done long ago because it is a necessary managerial exercise. There is nothing wrong with doing it now considering the current economic progress achieved so far,” said Bloch.
He cited the economic meltdown as the reason the country had foregone settling its debt over the years. Bloch dismissed the assertion that loans and funds secured from foreign institutions had been used by corrupt government officials and said: “That can only be determined by the debt audit”.
“Deteriorating production levels impacted negatively on the country’s economic performance and it is mere speculation that borrowed money was largely used by corrupt public officials,” he said.
Zimbabwe is currently in arrears on many of its international loans and last year, the government adopted the Zimbabwe Accelerated Arrears Clearance Debt and Development Strategy, in a move aimed at unlocking the country’s additional lines of credit.
The country repaid $77 million of its external debt, mainly to Chinese institutions and $27, 1 million for farming equipment imported by Farmers’ World and the Industrial Development Corporation five years ago.
Post published in: News