Govt could cancel Zim cattle debt

Mpho Mokwape | Wednesday May 25, 2016 17:06

 

At the time, the outbreak resulted in the suspension of local exports to the lucrative European Union.  The two countries sealed a deal in July of that year to export live cattle from Botswana for slaughter in Zimbabwe.

While the original deal consisted of a 45-day payment period, the troubled northern neighbour eventually built-up more than P1 million in arrears, and Botswana has been battling to recover ever since.

Appearing before the ongoing Parliamentary Accounts Committee (PAC) yesterday, Agriculture Ministry permanent secretary, Boipelelo Khumomatlhare said legal advice on the way forward would be sought from the Attorney General.

Every year, the PAC has grilled the ministry on the debt and each year, no concrete answers have been forthcoming.

He explained that the debt was part of the payment for 26,503 cattle, which were exported in 2012 and Botswana had been constantly in contact with authorities in Zimbabwe.

“In 2015 we wrote a letter to the Minister of Agriculture in Zimbabwe and he responded by saying they were willing to pay, but the problem was that they did not have money,” he said.

“We then communicated with the Zimbabwean ambassador who also responded by saying the country was in a dire situation and they would not be able to pay the debt even if they were willing.”

Before the PAC last year, Khumomatlhare’s predecessor, Micus Chimbombi said Zimbabwe had acknowledged the debt, but said it was unable to pay.

“They seem to be willing to pay us, but they do not have funds right now,” Chimbombi said at the time. Yesterday, PAC members questioned whether it was not advisable to cancel the debt as Zimbabwe had indicated that it had no money to pay off the debt.

PAC member and Bonnington South MP, Ndaba Gaolathe advised the ministry to consider writing off the debt, saying the move would make more economic sense.

“The Zimbabwean economy’s recovery would mean that it has a positive impact on ours because both the two countries feed on each other more so that we are just beating a dead horse,” he maintained.

However another committee member, Ignatius Moswaane said Zimbabwe must pay the debt.

“The ministry should find ways to collect the debt whether the country has money or not.  They entered into an agreement and they knew they had to pay.

“We should stop acting like a rich nation and stop making unnecessary donations. We should try to get what is owed to us because if not others who owe will also want their debts to be cancelled.

“Just imagine, how many millions would then be lost,” he said.