Parly probes US$144 million China loan

Top Stories Zimbabwe

Takudzwa Chihambakwe
Zimbabwe’s Parliamentary Portfolio Committee on Local Government, Public Works and National Housing will soon carry out investigations into how funds disbursed to the City of Harare by China-Exim Bank were used by the city fathers.

The Chinese bank gave the city council a loan facility worth US$144 million to be used in rehabilitating Harare’s water and sanitation facilities.
According to their agreement, China-Exim Bank gave Harare City Council US$$72 million to kick start the rehabilitation process.

It is alleged that part of the funds disbursed were channeled towards purchasing 25 luxury cars for top management,which was contrary to what the funds were meant for.

In light of this, the Chinese bank stopped providing the outstanding funds as it was not happy with the conduct of the city fathers.

When town clerk, Engineer Hosiah Chisango appeared before the parliamentary portfolio committee on Thursday to give oral evidence on service delivery by the city council he defended the council’s actions.

“The vehicles were among assets that were part of the project,” said Engineer Chisango.

“The vehicles acquired include seven five tonne trucks, construction vehicles, as well as Range Rover Discovery cars,” he said.