16 December 2017
   
Oppah new Zanu PF chair; but no VPs yet
Tsvangirai sought ED talks: Mugabe priest
G40’s Sekeramayi axed from politburo
Man strips for sex with donkey; nabbed
Sperm harvesters hit SA; man raped
Mnangagwa vows new path for Zanu PF
Congress seals Bob’s fall from grace
Vote rigging fear at Zuma succession
MORE NEWS
Indigenisation: IMF welcomes changes
Vic Falls Bridge toll fees introduced
MORE BUSINESS
Divisive South African film eyes Oscars
Zimbabwe totes obsessed with Zodwa
MORE SHOWBIZ
Jose Mourinho faces Ibrahimovic dilemma
FIFA threatens Spain with W-Cup ban
MORE SPORTS
Change must follow Mugabe’s fall
Coup: why the China role theory is hollow
MORE OPINION
 
Chivayo and the groupie effect
Nelson Chamisa on Washington trip
MORE COLUMNISTS
 
 
Chinese companies 'bleeding' economy: Zanu PF MP
09/12/2011 00:00:00
by
 
China worry ... Tendai Biti
 
RELATED STORIES
Zim back in business, vows Chinamasa
$153m Chinese loan for Mugabe airport
Xi to Bob: China on your side all the way
Chinese too smart for Mugabe, says Musewe
Bob rejects China's bid for Kamativi favours
China influence high in Zimbabwe: Report
Chinese take over former white owned farms
China donates 20 000 tonnes of rice
China marks muted 120th birthday of Mao
Chinese vice premier arrives for visit
Chinese companies not comrades: Biti
China can transform Africa: Moyo
China, Zimbabwe trade to hit US$1bln
Yuan under pressure as growth slows
Zimbabwe defaults on $200m China loan
PM draws fire over China delegation size
Zimbabwe trade with China tops US$800m
Chinese firms face worker abuse probe
Chinese couple cleared in US$500k swindle
SMEs squeezed by Chinese invasion
Mugabe seeks China, Russia protection
China keen to expand economic ties
Mugabe an 'old friend': China
Tutu fury over Dalai Lama visa snub
China's critics doing US bidding: AGO
China extends US$700m loan to Zim
Chinese Foreign Minister in Zim
China eyes US$3bn platinum investment
Hu Jintao pledge after Mugabe talks
Mugabe hails 'all weather friend' China

ZANU PF legislator, Paddy Zhanda has demanded a review of China’s involvement in the economy as it emerged the government has had awarding contracts worth more than half a billion dollars to foreign companies.

Zhanda said Chinese involvement was “bleeding” the economy at a time local companies were struggling to survive with many people unable to find work.

The MP, who chairs the parliamentary portfolio committee on budget, finance and investment promotion, revealed the figure while presenting a report on the 2012 national budget.

"$553m worth of contracts were awarded to foreign companies, and most of these to Chinese companies," Zhanda was quoted as saying.

"Zimbabwe has a very high unemployment rate and a liquidity crisis and we implore the minister of finance, Tendai Biti, to stop this bleeding."

Zhanda reportedly said the projects awarded to foreigners included the construction of flats in Harare at a cost of $7m.

He added: "A few examples of these projects include construction of Lupane State University to cost $10m, National University of Science and Technology to cost $4m, a project at the University of Zimbabwe to cost $2m, Beitbridge Waterworks to cost $4m, construction of the new parliament of Zimbabwe complex in Kopje to cost $134m, and others."

Projects awarded to Chinese companies include the construction of a defence college on the outskirts of Harare.
But economist John Robertson said Zhanda's comments were "unfair" and took a different view.

He agreed that in principle local firms should compete for tenders, but he said that most of the skilled workforce has left the country and Zanu PF policies have destroyed the country's capacity to compete against foreign firms, who have more resources.

"I think Zhanda is being critical for a political reason. Zanu PF members of government are constantly trying to find ways of criticising MDC members for whatever they have done or failed to do" Robertson said.

Zimbabwe received a Chinese loan of $98m to build the college, to be repaid over 20 years through earnings from the Marange diamond fields, which are being mined by Chinese firm Anjin Investments and the Zimbabwe army.

Some of the gems, worth $160m, went on sale this week for the first time since the lifting of an international ban by the Kimberley Process.



Advertisement

The government says China plans up to US$10 billion in investments over the next five years, more than any other country.

Chinese economic activity in Africa is often a source of controversy, with allegations that China is underpaying for mineral resources and either mistreating local workers or importing its own.


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker