http://www.timeslive.co.za/sundaytimes/article1101429.ece/Chinese-deal-just-for-elite
Chinese deal just for elite Defence College pact slammed as facilities to be used by Mugabe and his intelligence men Jun 4, 2011 1:49 PM | By SUNDAY TIMES CORRESPONDENT Zimbabwe's Defence College, which is being built by the Chinese in a controversial deal with the government, will have a state-of-the-art medical facility for President Robert Mugabe and other top government and military officials. quote'Mugabe must send the Chinese to teach in schools' quote Diamond watchdogs, diplomats, civil servants and others have castigated the deal, with Albrecht Conze, the outgoing German envoy to Harare, dismissing the Chinese investment as "exploitation". The Sunday Times has been told members of the Central Intelligence Organisation (CIO) will - with Chinese help - also be trained at the college, which was blindly agreed to by Movement for Democratic Change (MDC) Members of Parliament after a heated debate. Top military officials of Zimbabwe and Southern African Development Community (SADC) countries will also undergo training at the centre. According to highly placed sources, the centre will have an Olympic-size swimming pool, sports grounds, gyms, a well-equipped hospital, entertainment centres and many other recreational facilities. In a deal human rights groups and unions describe as "stinking", Zimbabwe mortgaged diamonds worth $100-million to the Chinese in exchange for the construction of the Defence College, just outside Harare. There have been allegations of underhand dealings in the awarding of the deal to Anjin Investment - a suspicious joint venture between Zimbabwe and the Chinese government's Anhui Foreign Economic Construction Group (AFECC). Under the arrangement, the Chinese will provide Zimbabwe with a $98-million loan to complete the construction of the college. Zimbabwe will service the loan through diamonds from Chiadzwa in the deal which will not benefit Zimbabweans, as AFECC will bring its own equipment, material and labourers. A top government official privy to the deal said the MDC had been hoodwinked into signing a deal that might come back to haunt it, especially as the college will be used for training CIO officials who have been out to destroy Prime Minister Morgan Tsvangirai's party. "On the surface it looks like an ordinary situation, but there is more to it. It has a deep impact on the politics of this country and, unfortunately, the MDC did not read into it well. "For example, the complex will have a world-class hospital which VIPs, especially Mugabe and his cronies, will use. They do not want to use public hospitals with little privacy. That college is a Zanu-PF project. "This college will not benefit the people of Zimbabwe at all. Instead, it will only benefit Mugabe and his cabal and there will be nothing for the majority. As you might be aware, when the Chinese invest in Africa, they do not give back - and that is why they are bringing their own workers," he said. Part of the agreement seen by the Sunday Times reads: "The related Zimbabwe side should establish an escrow account to secure the payment and repayment of the facility with the revenue of Zimbabwe's side benefits from Anjin Investment (Private) Limited. "An agreement on the escrow account should be signed by Zimbabwe sides and the lender (Export-Import Bank of China). The goods, technologies and services shall be purchased from China preferentially (and) also from Zimbabwe where this will benefit the project." Zimbabwe will pay 0.5% management fees to the Chinese. There was a heated debate in parliament last week with MDC MPs querying the deal, while Emmerson Mnangagwa, the Minister of Defence, was making a presentation. They wanted to know why the government wanted to spend $100-million worth of diamonds to build an elite military college at a time when service delivery has virtually collapsed. The MPS were demanding to know the benefits of the deal to the nation given that the military has been used to perpetrate violence against the people. However, both the House of Assembly and Senate ended up approving the deal, apparently after realising that Finance Minister Tendai Biti had already signed the controversial deal. "This development is unfortunate," Farai Maguwu, whose Centre for Research and Development has been instrumental in exposing shady deeds at Chiadzwa, has been quoted as saying this week. "China will do well investing in Zimbabwe's social sector as opposed to strengthening the military. It's not a wise investment and it will not improve the quality of life for the ordinary Zimbabwean," said Maguwu, who has been harassed before by the state for his work. Conze told journalists that China's dealings with African countries such as Zimbabwe were not balanced and exploitative. He said Germany was concerned about the way the Chinese were conducting business in African countries. Conze pointed out that China's dealings with Zimbabwe were not bringing real value into the country . "Most of the agreements signed by China will buy out the whole world's raw materials and block other countries from having access to these raw materials," he said. The Progressive Teachers Union of Zimbabwe also attacked the loan deal, saying it was immoral for the government to be hoodwinked in such a way instead of using the money to pay teachers' salaries. The teachers have threatened to go on strike with one teacher telling the Sunday Times this week, "Mugabe must send the Chinese to teach in schools". ------------------------------------ -------------------------- Want to discuss this topic? 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