Treasury Secretary George Guvamatanga faces accusations of wrongdoing after providing a bank guarantee for a $20 million loan to Valley Seeds. He wrote to Ecobank claiming Zimbabwe owed the company almost $192 million as of February 2025. The bank agreed to discount this debt, giving Valley Seeds $20 million that the treasury would repay in four quarterly payments. Guvamatanga named himself as the main person responsible for the guarantee.
Former finance minister Tendai Biti called the arrangement "pure looting" after seeing the leaked letter. He questioned how the government ended up owing such a large sum to Valley Seeds. The seed company previously participated in command agriculture programs, where Biti claims over $3 billion disappeared from public funds.
Biti argued nobody would accept $20 million for a legitimate $200 million debt. He remembered investigating Valley Seeds during his time as Public Accounts Committee chairman, but found their explanations unsatisfactory. Many companies benefited from command agriculture without proper documentation of what they delivered.
According to Biti, the treasury secretary lacks the legal authority to sign such guarantees. Only the finance minister can issue guarantees under the Public Debt Management Act, requiring parliamentary approval. A 2023 High Court ruling confirmed that ministerial guarantees to private entities need legislative oversight.
Former finance minister Tendai Biti called the arrangement "pure looting" after seeing the leaked letter. He questioned how the government ended up owing such a large sum to Valley Seeds. The seed company previously participated in command agriculture programs, where Biti claims over $3 billion disappeared from public funds.
Biti argued nobody would accept $20 million for a legitimate $200 million debt. He remembered investigating Valley Seeds during his time as Public Accounts Committee chairman, but found their explanations unsatisfactory. Many companies benefited from command agriculture without proper documentation of what they delivered.
According to Biti, the treasury secretary lacks the legal authority to sign such guarantees. Only the finance minister can issue guarantees under the Public Debt Management Act, requiring parliamentary approval. A 2023 High Court ruling confirmed that ministerial guarantees to private entities need legislative oversight.
