Biti tears into Guvamatanga over alleged Illicit $...

Biti tears into Guvamatanga over alleged Illicit $20 Million Loan Guarantee

Illegal Authorization: Guvamatanga lacks legal power to issue guarantees under the Public Debt Management Act (2015)
Dubious Debt: The $191.5 million claim lacks documentation; a 90% discount suggests arbitrage.
Command Agriculture Links: Valley Seeds allegedly invoiced millions without proof of deliverables.
Parliamentary Bypass: No legislative approval for guarantees, violating constitutional safeguards
Grey Area: Discounted treasury bills enable laundering of “looted” funds

Treasury Secretary George Guvamatanga faces blistering accusations from former Finance Minister Tendai Biti over an alleged “illegal and unconstitutional” bank guarantee for a $20 million loan to Valley Seeds in a deal linked to the command agriculture program, ZimLive has reported.

The $20 million loan, advanced by Ecobank, allegedly discounts a $191.5 million government debt to Valley Seeds by almost 90%, a figure Biti dismissed as being impossible for a genuine business transaction.

“This isn’t repayment—it’s extraction. Valley Seeds isn’t losing $180 million; they’re stealing $20 million,” he declared.

The deal has been brought to light through a letter published by ZimLive.

Biti, who is an opposition politician and former chair of Parliament’s Public Accounts Committee, accused Guvamatanga of bypassing legal protocols.

“The Public Debt Management Act is clear: only the Finance Minister—not a secretary—can authorize such guarantees,” he stated, calling the move “a slap in the face to taxpayers.”

The controversy traces back to Valley Seeds’ role in command agriculture, a program Biti claims funneled over $3 billion from state coffers with little accountability.

“Companies like Valley Seeds invoiced the government without proof of seed deliveries,” he explained, referencing a 2023 parliamentary probe that found no credible evidence to justify the debts.

Valley Seeds, fronted by businessman Themba Nkatazo, has since supplied seeds for the government’s pfumvudza program, raising concerns about recurring graft.

Critically, Biti stressed that Guvamatanga’s guarantee sidestepped parliamentary oversight. A 2023 High Court ruling (Justice Munangati-Manongwa) mandated legislative approval for such deals, yet no reforms followed.

“Parliament must reclaim control of the Consolidated Revenue Fund,” Biti argued, warning that unchecked guarantees deepen Zimbabwe’s fiscal crisis. He also accused Ecobank of enabling “dry cleaning” of illicit funds through discounted treasury bills.

Guvamatanga’s leaked letter to Ecobank named him the “principal executor” of the guarantee, despite legal restrictions. Biti likened the deal to past command agriculture schemes, where “billions vanished without audits.” He said Valley Seeds, alongside firms like Sakunda, remains central to unresolved corruption and looting allegations.

Neither Guvamatanga nor Finance Minister Mthuli Ncube responded to ZimLive’s requests for comment. Legal experts warn the deal could face judicial review, citing procedural breaches and mounting public debt.

“This is a festival of illegalities,” Biti concluded. “Until parliament asserts its role, looting will continue unchecked.”