Zimbabwe treasury secretary George Guvamatanga faces heat for offering a bank guarantee that many call illegal. He sent Ecobank a letter saying the country owed Valley Seeds about $192 million, with the bank agreeing to give the company just $20 million instead. The treasury plans to pay back this amount in four installments over the year. Guvamatanga claimed he had proper authority for this deal.
Former finance minister Tendai Biti saw the leaked document and blasted it as theft of public funds. He questioned how a small company earned such a massive debt from the government and called the steep discount suspicious. Valley Seeds previously worked in agricultural programs, where Biti claims billions disappeared without proper accounting.
Biti argues that only ministers can issue guarantees under the Public Debt Management Act, not secretaries like Guvamatanga. The law requires these guarantees to help employment or serve the public interest. Parliament must approve all such financial commitments before they occur since they affect the national treasury.
A 2023 High Court ruling confirmed that parliamentary oversight is needed for these arrangements. The former minister believes the massive discount shows evidence of money laundering through Ecobank.
Former finance minister Tendai Biti saw the leaked document and blasted it as theft of public funds. He questioned how a small company earned such a massive debt from the government and called the steep discount suspicious. Valley Seeds previously worked in agricultural programs, where Biti claims billions disappeared without proper accounting.
Biti argues that only ministers can issue guarantees under the Public Debt Management Act, not secretaries like Guvamatanga. The law requires these guarantees to help employment or serve the public interest. Parliament must approve all such financial commitments before they occur since they affect the national treasury.
A 2023 High Court ruling confirmed that parliamentary oversight is needed for these arrangements. The former minister believes the massive discount shows evidence of money laundering through Ecobank.
