Zimbabwe Coalition on Debt and Development (ZIMCODD) Executive Director Janet Zhou has accused corruption of the debt crisis in Zimbabwe during a workshop yesterday.
Zimbabwe has a debt of around US$18 billion both domestically and internationally.
“Debt crisis in Zimbabwe is largely an outcomes of corruption and elite enrichment,” Zhou said. “RBZ Debt Assumption, ZISCO Steel Assumption and ZAMCO are just conduits for corruption.”
“Austerity measures as those with limited incomes pay more in taxes to repay the debts (2% tax).”
The Executive director also said the Zimbabwean loan contraction is marred with illegitimate authorization and contraction in violation of national laws and constitutional provisions.
“There are loans which did not benefit the ordinary citizens and/or were used to suppress the citizens,” Zhou went on.
The loans which did not benefit citizens include US$700 million inherited from the Smith regime that was used to propel racial supremacy according to the director.
Loans from the UK government between 1980 and 2000 were used to buy Land Rovers which were later used for internal repression.
The ZIMCODD boss also said that it is the poor who subsidizes the debt obligation of private interest.
“The main victims of the debt crisis in Zimbabwe are the least responsible for the loan contraction process and resolving the debt,” Zhou said.
“Worse still government cut social spending further worsening social conditions of the poor,”
“Unsustainable debt undermines development with unacceptable consequences on health, education and other social services,” Zhou explained.
Zimbabwe has over US$9.5 billion besides the US$7.4 billion arrears owed to international funders.
The country, however, managed to clear arrears to the International Monetary Fund (IMF).
